Key Take-Aways:
- Housing starts in the U.S. increased significantly in July according to the recent U.S. Census Bureau release.
- Despite the surge in housing starts, flatbed demand in the trucking industry remains stagnant.
- The lack of growth in flatbed demand is likely due to other factors such as a decline in infrastructure projects.
The U.S. Census Bureau recently released data showing a substantial increase in housing starts for the month of July. This news came as a surprise to many, as the construction industry has been experiencing a slowdown in recent months. However, despite this positive development, the trucking industry has not seen a corresponding increase in flatbed demand. The transportation sector, particularly the flatbed division, relies heavily on construction projects for its business. Unfortunately, the lack of growth in flatbed demand suggests that there may be other factors at play, contributing to the stagnation in the industry. One possible explanation is the decline in infrastructure projects, which could be offsetting the positive effects of the increased housing starts.
Flatbed Demand Remains Stagnant Despite Increase in Housing Starts
The surge in housing starts indicates a potential rebound in the construction industry, which is typically great news for flatbed carriers. However, the lack of growth in flatbed demand suggests that the trucking industry is not benefitting from this upturn. It is important to note that flatbed carriers rely heavily on construction projects for their business, as they transport building materials and oversized loads. Therefore, the stagnation in flatbed demand is a cause for concern for carriers.
One possible explanation for the lack of growth in flatbed demand is the decline in infrastructure projects. While the uptick in housing starts is a positive sign, it may not be enough to compensate for the decline in other construction sectors. Infrastructure projects, such as roadwork and bridge construction, are major contributors to flatbed demand. With fewer infrastructure projects in progress, the trucking industry is not experiencing the growth that would be expected with the increase in housing starts.
Overall, while the housing industry seems to be on the rise, the trucking industry is still grappling with stagnant flatbed demand. This disconnect highlights the importance of a diversified portfolio for carriers, as relying solely on one sector can leave them vulnerable to fluctuations in demand. As the economy continues to recover and construction projects regain momentum, it is hoped that flatbed demand will follow suit. However, in the meantime, carriers should consider exploring other industries and sectors to mitigate the impact of the current stagnation.
Hot take:
The housing industry may be on the upswing, but the trucking industry is still waiting for its turn to shine. The recent surge in housing starts has not translated into increased flatbed demand, leaving carriers scratching their heads. While optimism remains for the future, carriers would be wise to diversify their business portfolios and not rely solely on the construction sector. It’s time to think outside the flatbed box!
This blog post has been generated using the information provided in the article:”Flatbed Report: Housing starts surged in July, but flatbed demand remains flat” by “Dean Croke”.
Check it out at: https://www.dat.com/blog/flatbed-report-housing-starts-surged-in-july-but-flatbed-demand-remains-flat.
