West European trailer market starts 2015 well

UK set for another strong year

A new report suggests demand for heavy goods trailers in Western Europe was strong at the start of 2015. Registrations of new trailers are forecast to grow by 12.8 per cent in the first half and 4.7 per cent in the second, according to the research conducted by Clear International. Overall the market is expected to be stronger than anticipated six months ago.

The reason is that several markets which have struggled since the global financial crisis started 2015 very strongly. Italy for example is up 68 per cent in the first four months of the year and will finish the year up a similar percentage. Spain, where registrations last year were half pre-crisis levels, has started the year up 60 per cent.

Two countries which have recovered quite well from the crisis have also had strong starts. The Netherland is up 31 per cent for the first four months of the year, suggesting that 2015 trailer demand will be very healthy. The UK, which set a new record for trailer demand in 2014 looks set for another very strong year.

These four countries plus Denmark will account for almost all the extra demand for trailers compared to last year’s forecast figure. Indeed, Clear International suggests Italy and the Netherlands will also be strong in 2016.

Gary Beecroft, managing director of Clear added: “What we are seeing in these markets is basically catch-up demand. In many European markets the demand for new trailers has been so far below the long term trend level for so many years that, as soon as companies regain the confidence to invest in new assets, the floodgates are opened and two or three years of exceptional increases are possible. ”

However, it must be remembered that in some cases (such as Italy and Spain plus Portugal and Ireland) the figures are starting out from a very low base.

Within big seven economies of Western Europe in 2015, all are forecast to have accelerating GDP growth and higher business investment with the sole exception of Italy, which will follow the pack in 2016.

The forecast for new trailer demand is that it will match the level of 2006 by 2016. It remains unlikely that the demand level of 2007/8 will be seen again. However, 2006 saw the third highest trailer registrations level on record.

Trailer production, having fallen by 9.2 per cent from the 2011 level, had a 12.2 per cent increase in 2014. Further increases are forecast for 2015/16.