Good time to take advantage of upswing
Certainly, there’s a long way to go before most people feel they can breath easier, especially those with property and mortgage hangovers, but at least we’re driving the right road. And on that, the traffic levels we’re seeing at the moment are right back up there to the mid-2000s point, among them a very obvious cohort of new vans.
Putting it in numbers, the 21,645 LCVs sold to the end of September represented a 49% increase on the same period last year, and HGVs are up a more modest 10% in the year to date — but they represent a much bigger investment by operators.
If a trucking company, large or small, is buying new vehicles, it’s a key indicator of belief in the medium future. The Society of the Irish Motor Industry’s most recent review, produced by economist Jim Power, provided other positives underpinning the mere sales figurers.
In the first half of the year, retail sales volumes were up by nearly 9%, the unemployment rate has gone below the 10% threshold and is expected to dip to 8.5% next year. Actual employment, after bottoming to 2004 levels in 2012 has been on a steady upward trend since. Consumer confidence surveys also show a continuing positive climb. And construction activity is up amid plans to deal with a housing crisis in major urban centres.
The relatively low price of oil internationally is also helping. Add to that the fact that there were a lot of older vans out there which were likely to struggle to meet the annual safety and environmental tests they are required to have, and there have been a number of financial deals by key brands available, including a Personal Contract Purchase offer from Volkswagen and a ‘scrappage’ scheme from Peugeot, and it’s not really a surprise that LCV sales are getting quite healthy.
Though let’s not lose the run of ourselves (again). The economy is improving, yes, but we’re a small nation and that economy is subject to many influences, a lot of them outside our control.
The Middle East remains in turmoil, the migration issue may have unanticipated consequences for the European general economy, our own elections now pinned to February might throw a curve ball locally. Just sayin’, that things are good, but not everything is necessarily rosy.
But it’s still probably a good time to consider that new van, while the dealers still remember the recent pain and are prepared to work to get your business.
Brian Byrne is editor of Irish Van & Truck
