End of the slump?
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CCORDING to an in-depth market research survey carried out for ices CAV, lorry dealers are now taking a more optimistic view of le propspects of an upturn in business. The report was carried out f the Paris-based vehicle industry forecasting firm of Best Assoates.
Nearly half (46 per cent) of a atistically representative imple of UK lorry dealers con:med the view that over the )xt six months their orders ould increase. This compares vourably with the figure of 21 3r cent gained from a similar irvey carried out last October. The main reasons given for is more hopeful view included wer interest rates; an improve
merit in the level and seriousness of inquiries from customers and that vehicle replacement is no longer being put off.
There are more dealers planning to increase their sales force in the near future than there are planning to cut back, the survey found.
Although the stocks of all sires of vehicles at dealers' premises are still very much higher than the backlog of orders, there are signs that in the over 28 tons sector the stock/order ratio is falling, and the monthly sales figures are improving.
An interpretation of these results is that the first slight recovery of demand is having a fairly rapid effect through the chain of supply.
Statistics show that the heavy lorry market is the first to show signs of an increase. In the past, this has marked the turning point in the commercial vehicle trade cycle.
This report has been carried out for the past six years, and the area that it covers is being considerably increased to include commercial vehicle trends in other European countries.
The view of Lucas CAV Market Research is that while it may be too early to say yet that recession is over, this survey of shortterm trends in UK vehicle sales does show that the worst point of the slump may already have passed.