As we work our way through the final quarter of 2021, the economic headwinds blow ever harder. For the year so far, truck registrations are down -24.3%, and Bus and Coach registrations have shrunk by -19.8% – both on what was already a challenging 2020.
Semiconductor shortages, which currently show little sign of easing, are making what would otherwise be a strong truck market difficult. For the Bus and Coach sector however, demand remains weak as ridership remains well below pre-Covid levels. It says something about the resilience of the sector that we haven’t seen any significant business casualties. Although with a combination of challenging market conditions, inflation, and difficulty accessing finance, it’s not surprising that anecdotally we hear some in the supply chain are really struggling.
Recessions do of course always end. However, forecasting the end of this particular one will remain challenging, given the myriad factors at play.
