Fleet Bottleneck: Parcel Delivery Crowding Out Laundries

Posted December 6, 2019 at 11:37 am



Given the explosive growth of various package-delivery businesses, including everything from groceries to construction materials, we wondered what impact this trend could have on the truck market. Specifically, how will today’s robust demand for delivery vehicles impact the ability of linen, uniform and facility services companies to expand their fleets? Rich Tremmel, vice president of sales and marketing for Morgan Olson, Sturgis, MI, agreed to answer a few questions on these trends in the truck market.

Is there likely to be a shortage of route vehicles in the near term due to strong demand from shipping companies?

Yes, there will be. The demand is greater than the strip chassis availability and the body company capacity. Both are being addressed right now.

With Morgan Olson’s new plant in Danville, VA, slated to begin production next June, are you confident that your company can fill the orders from linen, uniform and facility services companies, as well as other shippers?

Now that we have three facilities available to us, we will maximize each one with best-fit product types. For example, one may be for parcel delivery and one may be for multiple vocations such as textile rental that has different configurations for the respective end users. Most of our engineering resources are at the Michigan facility. Therefore, we see this being the primary plant for textile rental.

Are you concerned that the chassis manufacturers (primarily Freightliner and Ford in the U.S. market) will be able to keep up with growing demand for step vans in the next 2-3 years?

Yes, we are. There are only so many engines to go around until the manufacturers have strong forecasts.

Is there enough of a risk of a bottleneck on truck production that commercial laundries should plan their truck purchases out a couple of years in advance?

I cannot stress this enough, yes. The days of assuming the body manufacturers can get you a vehicle in three to six months is over. We are consulting our customers who buy year after year with us that they need to plan differently. Most companies are going to follow our advice, which is good for their business.

To learn more, contact Tremmel at rich.tremmel@morganolson.com.

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