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Wednesday, November 16, 2016

What can we expect for 2017 - in DIESEL Motorsports?

Well the election year is almost over and now back to normal business for 2017! I forecast quarters 2, 3 and 4 will be big improvements over last year's revenues. In fact I see them improving each quarter as the year progresses.

The first quarter will be good but it will take some time for the new direction business will be taking for the next four years. Manufacturing will be on the rise with less restrictions from the EPA which means the economy will slowly make a come back. Ford and GM has already announced moving manufacturing back to our country from Mexico.

More jobs and more money for our automotive industry! Add in the tax cuts (when implemented) and you will see companies freeing up the purse strings to hire more people, produce and stock more product. 



They will do this in order to anticipate the increase in sales from consumers. It's been a long haul for many stretching the use of their old diesel trucks for hauling, work and pleasure - frankly many are getting worn out!

The average ownership of a pickup truck is now 11-13 years according to Polk Research, even being a diesel I'm sure many of you have seen maintenance repairs go up the past years. Now you will see new truck purchases and the older trucks go to secondary used truck consumers. 

That is why the diesel industry will see a slow increase as the trickle down effect of new truck owners wanting performance and accessory items plus the older truck purchaser wanting additional repairs and upgrades to those used diesel trucks.

Be ready for both and decide which will be profitable for your business. There is profit in both if you know how to offer service on both. Do some research during the winter on new truck drivetrains and what fails on them.

I have already talked to some mechanics at dealerships and found items they are reporting failing on new Eco-diesels and new model drive trains. Use the winter to get smart because a change is in the wind for diesels.

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