FCC Equipment Financing Inc., a subsidiary of Caterpillar® Financial Services Corporation that provides lending solutions for new and used equipment to the transportation market, recently released a comprehensive transportation industry report.

The report, titled "FCC 2008 Economic Insight: An Annual Outlook on the Transportation Industry," was produced by Caterpillar's economists and provides a compilation of viewpoints on the current and future status of the U.S. economy and the North American transportation industries, including trucking, rail and motor coach.

Highlights of the report include:

With many industries that lead the economy in decline and no clear sign of imminent and significant monetary stimulus, the United States economy is expected to grow only 1.5 percent in 2008.

The implication for the trucking industry is that freight will be flat to down about 1 percent in 2008.

New heavy duty vehicle purchases in the United States will be approximately 140,000 vehicles-up from 135,000 in 2007-and largely for replacement.

Demand for midrange trucks will be down 17 percent in 2007, with about 120,000 vehicles purchased. In 2008, demand will be down another 10 percent from 2007 levels at 108,000 vehicles.

Continued weakness in the housing sector will decrease demand for transportation related services for this industry.

Motor coach trips have increased almost 10 percent from 2005 to 2006. Group travel is especially strong, and this is the bread and butter of the industry.
"FCC has an in-depth understanding of the transportation business, including equipment values, enabling us to create tailored financing structures for customers," according to John Marino, FCC's national sales manager for transportation. "We have industry specialists who call directly on transportation management and provide an unequaled level of customer service, plus we have the strength and staying power of Cat Financial."

FCC provides financing for mid-size to large private fleets and common carriers throughout the United States with medium or heavy-duty trucks (classes 6, 7 and 8), trailers and related transportation equipment. The company provides fixed and floating rate loans, TRAC leases and revolving lines of credit. These products can be used for equipment acquisition, working capital, debt consolidation and debt restructuring.

The full report can be downloaded in a pdf format at http://www.fccef.com/economicinsight.asp. Companies can also register to receive the report and quarterly updates in the mail, on the Web site or by calling FCC at 1-800-207-9286.