Part Shortages

As working from home was enforced, individuals surged to buy suitable connectivity devices. Purchases of smartphones and laptops, whilst manufacturing and production plants were closed. Therefore, slowing the production of vehicles, from class 1 passenger cars to class 8 heavy-duty trucks. This has now led to a shortage in semiconductor chips which are located in both technology and late model cars and trucks.

Furthermore, one of the biggest challenges now facing trucking companies is delays. Production lines are experiencing unprecedented delays, with new stock due to worldwide parts shortage. New vehicles are awaiting new components, whilst used trucks are holding out for service bays. With high demand but availability low, suppliers are having to source parts and diversify their supplier resources. Additionally, to combat the wait for customers, many people are extending their leases.

Demand For Euro 6 HGV Stock

Concerns are growing with regards to environmental pollution across the plant. In 1993 the European emission standards were introduced, these were to help towards the measuring and control of the environmental impact. It aims to reduce pollutants such as nitrogen oxide (NOx), carbon monoxide (CO), hydrocarbons (THC and NMHC), and particulate matter (PM). Research has shown an increase of 42% of demand for Euro 6 HGV trucks.

The government are actively striving to reduce emissions. From new regulations for combustion engines and introducing more clean air and ULEZs (Ultra Low Emissions Zones). With increases in costs for traveling in certain areas alongside increased tax, demand for Euro 6 HGV vehicles has increased. Reports have found there is a 59% increase in comparison to pre-pandemic.

Increased Costs

As demand has increased so has the cost of vehicles new and used. It has been reported there is a record high (58%) in the average selling price of used HGV vehicles. With the average selling price of a used HGV reaching £13,226 throughout summer. In general, used trucks are becoming almost equally as expensive as new.

Record High Demand Despite Covid

Van and truck sales have seen a record high in demand. This is thought to be due to changes in buying behaviours, resulting in more online sales and home delivery requirements. Reports have shown a 76% (191, 513) increase in sales compared to the first half of 2020. Due to such high demands mixed with shortages many dealers have closed their books for 2022. This enables them to meet customer expectations and in general catch up with the increased pressures.

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As reported by the Office for National Statistics (ONS), Brexit has had a major impact on the moving of goods in and out of the UK. In Q1 (January to March) imports and exports fell by 24.2% in comparison to 2019. Brexit alongside the coronavirus pandemic imposing national lockdowns and travel restrictions the trucking industry has suffered. 42.5% of businesses reported the pandemic as the main cause of change in comparison to Brexit 13.9%, between May and June 2021. A Road Haulage Association (RHA) survey has reported there is a shortage of more than 100,000 qualified drivers within the UK.

In an effort to try and reduce pressures caused by the pandemic and Brexit the UK government have made changes to driving licences and tests for heavy goods vehicles (HGV) work. With the aim of increasing the number of qualified HGV drivers, there will be roughly 30,000 more HGV driving tests available to book. Resulting in individuals being able to gain their licence and enter their chosen industry quicker.

Changes To Licences And Tests

Changes were made on the 15^th of November and are applicable to people who have a provisional lorry licence that was issued before this date. For a HGV license, you can now learn and take you test in a large articulated lorry (category CE). However, this is still optional, and you are still able to use a category C lorry if you wish. Furthermore, changes also apply to medium-sized lorries towing a trailer (category C1E).

Once you have successfully passed your test, your choices have increased. You are now allowed to drive:

• a medium-sized lorry (C1)
• a medium-sized lorry towing a trailer (C1E)
• a large rigid lorry (C)
• a large articulated lorry (CE)

How Has The Test Changed?

To ensure a quicker process for people to enter their chosen industry, tests have now been made shorter. Additionally, the ‘reversing exercise’ and ‘uncoupling and recoupling’ element of the test will now be tested separately by a third party.

Macs Trucks Rental

If your company is having to react to increased demand and lead times, Mac’s Truck Rental can help. If you are hiring more truckers and expanding your fleet, we can supply a vast range of HGV vehicles suitable for every industry. Offering short-term and long-term commercial truck hire, enabling you to take full advantage of the new HGV licence changes.

Our fleet includes beavertail hire, skip lorry hire, crane truck hire, and hook loader hire. In a variety of sizes across multiple jobs for instance 7.5 tonne lorry hire we have the right solution for you. With over 50 years’ worth of experience, expertise, and knowledge, get in touch today.

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If you have decided to buy a new truck for your business but are unsure if you can afford to pay for it outright, then truck rental could be for you. Commercial truck and lorry hire is ideal for companies who want to increase, upgrade, or renew their commercial vehicles at the lowest possible cost. This involves spreading the cost over an agreed period of time through set monthly installments.

As with anything, there are pros and cons to both renting a lorry or truck and purchasing for your business finance. When considering hiring a commercial truck, here are the benefits that your business can gain from compared to purchasing a truck outright.

Benefits of hiring a truck

Low initial capital expenditure – Spreading the cost over a monthly basis means you can hire the truck and lorry you need without spending the full amount it’s worth straightaway.

Bespoke to your business – You can arrange personalised bespoke truck rental prices that suit you and your business needs. No hidden costs and terms that work for the companies goals and future plans.

Maintenance and breakdown are covered – At Mac’s Truck Rental we cover any issues you have with your trucks. Although rigorous testing occurs before we hire any of our trucks, issues can arise. We will fix these for you meaning no further costs or long-term downtime.

Access to the latest technology – Renting a used truck will provide you with access to the latest technology and economic standards. As many areas are implementing clean air zones this is particularly important for businesses to further reduce costs.

Tax benefits – Hiring a truck can reduce your tax bill, by offsetting truck rental prices against your taxable profits. If you’re charged VAT on your truck hire, this is also reclaimable.

Options at the end – At the end of your short or long-term truck hire, you will have the option of either buying the truck outright or returning it and hiring a new truck.

Why choose Mac’s Truck Rental as your truck hire company?

We are the UK’s leading HGV truck and lorry rental company. We have helped businesses across the UK and within different industries gain access to high-quality commercial trucks. This has enabled many businesses to continue running through some of our toughest financial years. With high truck driver shortages maybe, your company is expanding as a reaction to rising demand and increased lead times. Our team of experienced individuals means we are perfectly placed within the industry to help and advise you on your truck rental options.

As a family-run business with over 50 years of experience, we can truly offer you peace of mind. Whether you are looking for a bespoke custom-made build to suit your business needs or high-quality used trucks we have the ideal truck rental price for you. All of our trucks, bespoke or not are fully maintained and each has to pass robust tests. This includes servicing, inspections, and all the relevant certifications required for your vehicle. All of which ensures you receive the lowest cost truck and lorry hire. Furthermore, we offer a range of vehicles from top manufacturers including Scania, Volvo, Mercedes, FASSI, and DAF.

Whether you’re looking for a beavertail hire, skip lorry hire, crane truck hire, or hook loader hire we have a wide selection of trucks suitable for a range of industries. No matter what the size of the job for instance 7.5-tonne lorry hire we have the right solution for you. Contact us today to go through all your truck hire needs.

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Affected Areas

The speed restrictions started in October 2020 and will remain in force on a trial basis for one year. The temporary speed limit covers a five-mile stretch on the following motorways:

• M1 between junctions 33 and 34 near Rotherham
• M5 between junctions 1 and 2 near Oldbury
• M6 between junctions 6 and 7 near Witton
• M602 between junctions 1 and 3 near Eccles

The speed limit is active 24 hours a day. At the end of the trial, there will be an impact assessment, and the findings may or may not result in a rollout of the scheme to other motorway sections.

Future Outlook

Across the EU, the commercial, automotive industry saw a 67% fall in sales through April. Light commercial vehicles took the largest hit, with an 86% fall in sales, while sales in HGVs over 16 tonnes dropped by 80% in the UK. The outlook for the year reflects the lower demand in freight due to lower industrial production. Market demand is expected to decline, and sales are projected to be down by roughly 20% to 30% compared to last year. However, the automotive industry will benefit from more online shopping as consumers adjust to a new way of life, spurred on by the November lockdown. For more information on truck rental and contract hire, click through to our trucks page, or get in touch.

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So, what truck maintenance should fleet operators ensure take place?

Common Failures & Issues

While you should leave truck maintenance on electronics to a professional commercial truck maintenance firm, there are things you can do to prevent common failures.

Brakes
The driver is legally required to check the brakes each day to ensure they are in good working order. Listen for air leaks in the brake chamber and carry out an inspection to sport loose parts such as springs, bushings, and pins. You should also check the brake shoe wear indicators.

Tyre wear
Keeping heavy loads safely on the road requires you to check the air pressure, which is also critical for fuel-efficiency. Not overinflating tyres is important because this can increase tread wear and cause blowouts. Your drivers should evenly distribute the weight of the load, check for sidewall damage, listen for air leaks, check tread wear, and ensure that radial and bias tyres are not mixed on the same axle.

Engine problem
Excessive smoking, decreased power, and loss of oil pressure are signs that truck maintenance is urgently required. Your drivers should check exhaust temperature and coolant levels regularly.

General Wear & Tear

Changing the oil every few thousand miles will prevent many potential truck issues. Truck manufacturers recommend every five to seven thousand miles, but if your truck is hauling heavy loads, it pays to change the oil more often.

Check all belts to reduce the chance of breakages while the vehicle is in motion, which can cause serious harm that is expensive to fix. If you have trucks that are more than a few years old, it may pay dividends to search for and buy items that wear now. These items include brake pads, starters, alternators, and oil seals.

Truck maintenance should always be at the top of your agenda, and you should always carry out truck repairs straight away.

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New Business Guidelines

UK VAT registered businesses will need a customs registration number to continue to trade with European countries. The documentation your logistics company requires is called the Economic Operator Registration and Identification (EORI). Your company will need this to transport goods in and out of the UK and the EU, following the end of the Brexit transitional period. Driving regulations will also be affected, and next, we take a look at driving after Brexit and how this will affect your fleet of drivers and vehicles.

Driving In The EU

After Brexit, drivers of company cars and lorries will need to carry a copy of their contract of employment. If the car or lorry is to be driven for non-work purposes, the employment contract must state that this is authorised. In case of a no-deal scenario, trucks will need a certificate of compliance (ECMT) and a certificate of roadworthiness for trucks and trailers. The lorry needs a green card to show that it is insured, and a second green card is needed for the trailer, along with trailer registration plates and papers. Drivers should carry a valid UK driving licence and passport. The passport must have at least six months remaining and be no older than ten years from its date of issue. Your drivers may also require several international driving permits (IDP). The IDP 1968 covers all EU countries except for four. For Spain, Cyprus, and Malta, your drivers need an IDP 1949, and in Liechtenstein, an IDP 1926. 

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The automotive and HGV vehicle manufacturers witnessed a slump in sales during the initial weeks of the first round of lockdowns earlier this year. However, normalization occurred over the summer months, and demand for commercial vehicles and leasing arrangements exceeded expectations.

So far, there has been some impact as orders in the first quarter were postponed or canceled. However, as lockdowns were lifted, there was a surge in demand in waste vehicles as furloughed workers and home workers renovated their home and garden spaces.

Current Guidelines

Many commercial vehicles are involved in logistics work categorised as ‘essential services,’ and of course, international and domestic freight is also considered an essential service. The automotive industry continues to see demand driven by households’ needs as domestic and commercial waste is collected and food and consumer goods are delivered.

Truck providers, drivers, and mechanics have been able to quickly adapt to new guidelines, adhering to automotive health and safety best practices at every step of the way.

Future Outlook

Across the EU, the commercial, automotive industry saw a 67% fall in sales through April. Light commercial vehicles took the largest hit, with an 86% fall in sales, while sales in HGVs over 16 tonnes dropped by 80% in the UK.

The outlook for the year reflects the lower demand in freight due to lower industrial production. Market demand is expected to decline, and sales are projected to be down by roughly 20% to 30% compared to last year. However, the automotive industry will benefit from more online shopping as consumers adjust to a new way of life, spurred on by the November lockdown.

For more information on truck rental and contract hire, click through to our trucks page, or get in touch.

The post The impact of COVID-19 on the automotive industry appeared first on Macs Rental.