Over the past 12 months here at Mac’s Trucks, we have witnessed the prices of vehicles rise at an extraordinary rate. This combined with the high demand for used trucks due to long lead times for new trucks has led to the used truck market almost being in line with new truck prices. In some cases, a 3 to 4 year old vehicle has a second-hand value higher than the original purchase price.
This, in conjunction with the 130% tax relief that has been available for the purchase of new trucks, has made it an optimal opportunity for companies to purchase new vehicles a lot sooner than anticipated. With the introduction of Clean Air Zones in various towns and cities by local councils, companies have also moved forward with plans to upgrade their vehicles to cleaner, Euro 6 engines to comply with the changes.
Despite the negative stories being published by the news and various media outlets regarding the Ukraine war and projected recession. This has proved little to no hinder towards the upward trend in demands for both new & used vehicles.
The HGV market is growing rapidly in many parts of the world, as businesses seek out new and improved ways of transporting goods. The HGV market across the UK has faced unprecedented challenges throughout 2020 and 2021. However, recent statistics have shown registrations to now be above their pre-pandemic levels in 2021, reaching 504,600 vehicles in circulation. This growth is being driven by a number of factors, including increased e-commerce deliveries and Brexit-driven changes. To the UK’s customs regulations and the government’s pledge to reduce emissions from freight transport. This is overall a positive trend for the industry, as it provides a massive opportunity for businesses to expand and increase their fleet of vehicles.
Overall Heavy Goods Vehicle Registrations
Research conducted by the Society of Motor Manufacturers and Traders (SMMT) shows new HGV registrations have increased by 9.6% in 2022. This is a direct comparison of 9,891 registrations in 2021 Q4 to 11,312 in 2022. This marks the second year of growth for the sector and reflects an easing in the supply constraints caused by the coronavirus pandemic. Showing an increase in demand from the haulage, construction, and distribution sectors. Helped by the easing of supply chain and logistics disruptions.
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Of this increase, SMMT then looked at the split of HGV by brand. Their data showed that Renault and Volvo trucks had the highest increased between 2021 and 2022. With DAF trucks and Mercedes close behind with 13.2% and 13% increases respectively. Although, it showed other brands decreased such as MAN who went from 3480 heavy goods vehicle registrations to 3324.
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In terms of body type, the main difference was an increase in tractor units and curtainsider lorries. Furthermore, tipper trucks and refuse disposal lorries increased in 2022 however only by a small margin, although box vans decreased in 2022. Based on UK nations Northern Ireland had the largest percent change between 2021 and 2022 at 18.3% overall.
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“Large growth in the heavy goods vehicle market is welcome amid the myriad challenges facing the sector, and signs of supply chain issues finally beginning to ease deliver hope for a more positive 2023,” said Mike Hawes, SMMT chief executive.
“To maintain strong momentum, solidify recovery and drive fleet renewal, essential for delivering cleaner air in our towns and cities, the government must focus on measures to help drive demand for decarbonised heavier vehicles. This means investment in charging infrastructure that is accessible for trucks and reflective of their growth, ahead of need, while also taking a technology neutral approach as we race towards 2040 and the goal for all HGVs to be zero emission.”
Growth Of The HGV Market
The growth of the HGV market is being driven by a number of factors having various impacts upon the industry:
HGV Technology Improvements
The growth in the HGV market has also been driven by improvements in technology. Technology advancements have been a game-changer for the logistics industry in many ways. Technology is one of the key components for any successful logistics operation. By introducing technological improvements to HGV fleets, companies can increase their efficiency, reduce costs, and offer faster and better service to customers.
Advancements such as automation to increase efficiency and reduce human error. Automation systems can also assist with navigation, permit tracking, and provide real-time updates on the whereabouts of items. With the added benefit of fewer accidents and improved safety. As well as the introduction of advanced data capture solutions. Systems that can gather data from a range of sources, such as GPS, Remote Diagnostics and Tachographs. Companies can then track fleet performance in real-time, enabling them to identify issues and make necessary changes. Similarly, there have been advances in driver assistance technology, such as lane departure warning and blind spot monitoring, which both reduce the risk of accidents.
Alongside the economic benefits of the HGV market, the industry is also looking to provide more environmentally friendly solutions. Low emission HGV’s are becoming increasingly popular, with a number of innovations within the sector. This includes the introduction of alternative fuels, such as biofuel, natural gas, and electric power.
All of these solutions are contributing to a reduction in emissions, as well as helping to reduce overall running costs. Due to HGV trucks that are more fuel efficient, allowing for drivers to complete more deliveries in a shorter time frame.
HGV Drivers Shortages
For the industry, this increased demand for HGVs has provided further employment opportunities and an increased need for drivers. This is especially true in the UK, where the HGV driver shortage has been a major issue for the past few years. As more businesses continue to invest in HGV’s, the demand for skilled drivers has increased. In turn, this has led to an increase in the salary and benefits offered to HGV drivers, to attract more people to the industry.
Move With The Market Alongside Mac’s Trucks
As the HGV market continues to grow, the industry is being forced to adapt to changing customer needs. Many companies are now offering customised solutions, such as individualised delivery routes and flexible delivery slots, to cater to customer requirements. Companies are also investing in better tracking systems, which allow drivers to know exactly where and when their consignments are due to arrive.
Overall, the HGV market is growing rapidly, and this is having a positive effect on the industry as a whole. The growth has meant an increase in jobs and pay for HGV drivers, while businesses are able to offer more customised solutions to meet customer needs. With the ongoing growth in e-commerce and long-distance deliveries, there is no sign of the HGV market slowing down anytime soon.