Utilization

For manufacturing, ISM reported that 2025 revenue is expected to rise 0.1%, coming in 4.1% below its previous forecast, made in December, at 4.2%. ISM member panelists reported that they expect 2025 revenues to be flat, coming in 3.9% below the December forecast.

The April IBI Active Index reading came in at 54.4 (a reading of 50 or higher indicates growth is occurring), following a 58.4 first quarter reading and 19 months in the high 50s and low 60s range. And the IBI Utilization rate headed up to 85.1, after a collective 84.6 reading over February and March.  

For November, the most recent month for which data is available, the TCI reading came in at 3.02, a notable gain over October’s 0.49 reading, representing the best reading going back to April 2022.

For January, the most recent month for which data is available, the SCI reading came in at 3.3, marking a 3% decline December’s 6.4 reading and also below November’s 6.3. October had topped September's 4.3 by 2%, with FTR saying at the time reflected the most favorable market conditions for shippers since June 2023.

The state of the freight economy was a key theme at the SMC3 JumpStart 2024 conference held in Atlanta late last month. Avery Vise, vice president of trucking, for freight transportation consultancy FTR, offered up his views on the freight economy, at the moment, and where things could be headed.

For October, the most recent month for which data is available, the SCI reading came in at 4.3.

For March, the most recent month for which data is available, the SCI reading fell to 4.5, following February’s 5.1 reading and January’s 5.4. These readings are nearly half of December’s 10.3, to finish 2022. November’s 3.0 reading was preceded by -3.1 and -0.3 readings in September and October, respectively.

FTR said that the February reading reflects an environment “that is mostly favorable and stable for shippers.” And it added that slightly lower fuel costs and relatively weak freight demand offset stronger rates and utilization in the month.

The current state of trucking utilization and its subsequent impact on the broader carrier and transportation community can be viewed as something that is hard to forecast and is more assumption-based. That is the word from Avery Vise, Vice President of Trucking for freight transportation consultancy FTR during a recent Webcast the firm hosted, which focused on the impact of coronavirus, of COVID-19, on freight transportation operations.