What personal spending there is will be good for freight companies, Mr. Toja said. While new car sales will be flat this year, domestic production will be up due to light truck sales. Most of the light trucks sold in the U.S. are built here, and more importers are building their vehicles here as well. These transplant factories will need to be serviced. Demand in Mexico and Canada will grow in 1997 and 1998.
Industrial production is sound.
He pointed to growing foreign markets for a number of domestic products, especially durable goods. Trade grows more important. And one shouldn't be too concerned about where these products were manufactured, he advised, since any goods moving in the U.S. have to be moved by U.S. transportation firms. The truck and trailer manufacturing industries face challenges from this increased flow of goods. Freight transportation costs are a significant part of total product costs.