• The economy will continue to grow over the course of 2017 and the trucking economy is expected to get off to a strong start in 2017.
• Similar to last year, we are still in the expansion phase of the business cycle, but getting closer this year to the boom phase. Employment volatility, fiscal policy uncertainty, the Federal Reserve raising the Fed Funds Rate and tighter bank regulations are factors that can push the economy into the boom phase.

E-Commerce Parts Purchasing Study

It is important for industry players to understand the impact of e-commerce on the aftermarket and the business opportunity that it represents. 

We are preparing to launch our e-commerce study this spring.

The main objective of this study is to more clearly understand the current and future e-commerce parts purchasing channels and the buyer utilizing these channels. By examining fleets’ purchasing patterns, we will examine specific parts being purchased and the channels utilized when making these purchases.

In addition, this study will:

• Profile the online buyer.
• Identify those types of parts most frequently purchased online.
• Examine the variety of channels offering online ordering and the fleets’ rationale for using the online parts source.
• Define online parts purchasing from the fleets’ perspective.
• Determine impacts to the current distribution channels.
• Identify unique and/or different distribution channels that have not been traditionally utilized.

Want more details? Have questions on the Study timing? Contact us. We would be happy to further discuss this timely and important Study.  Email john.blodgett@mackayco.com and  View E-Commerce Study Prospectus.                                                                                                                       

As recent events have shown, executive orders are the quickest way to get a policy in place. Regulatory change, once the necessary appointments have been made in the Executive branch, should also follow swiftly. Anything requiring legislative action is going to take a lot more time.

Case in point, back in 1981, when President Ronald Reagan succeeded in enacting the first part of his program on tax reform, that process took almost a full year to complete. Reagan took office in January of 1981. The Economic Recovery and Tax Act was introduced in Congress in July of that year. The law was signed by President Reagan in August and the new tax code was put in place in October. The full effects of the changes began to be seen early in 1982.

The current political calculus has the first two items under the close control of the congressional leadership. House Speaker Paul Ryan has been floating tax reform ideas for several years and is likely to insist that his versions of the proposed tax laws be considered first. Since it is rare for any tax legislation to pass as first drafted, we can expect some give and take on both the content and the sponsorship of the final bills.

Infrastructure spending has also been a topic long under consideration in Washington. But, beyond a general agreement that there should be more infrastructure spending, there is no consensus on what kind of spending should be done first and how it should be paid for. With the confirmation of Mick Mulvaney, a deficit hawk, to be the Director of the Office of Management and Budget, it is likely that all spending proposals will receive extreme vetting before being submitted.

The border adjustment tax is currently being pushed as a separate initiative by the administration. It could, however, get folded into the larger tax bills that are expected to be considered. So far, most of the press on this issue has been negative, with firms that import a lot of goods being most vocal in their opposition.
Bottom line: It is going to take a while to turn promises into priorities. Once set, those priorities are going to be debated, perhaps at length. Once enacted, it will take some time for the changes to have a visible effect.