Many Trends Heading in a Positive Direction for Work Truck Upfitters

As we reach the end of 2024 many things seem to be trending in the right direction for the U.S. work truck industry. The road ahead will likely have some twists and turns, but looking at the big picture we have good reasons to be cautiously optimistic. Some of those reasons include:

FALLING INTEREST RATES: The interest rate cuts by the Federal Reserve in November led to an overall loosening of credit and gradual rate drops across the board. This is welcome relief for anyone carrying works in progress or finished goods inventory. It also lowers the cost of purchase for buyers seeking to expand their fleets. An increase in construction demand should follow for the building trades. All this is welcome news. Demand for work trucks should continue to be strong and may get even stronger if other favorable trends continue.

CARB LEGAL CHALLENGES: California’s Advanced Clean Fleet (ACF) regulations took effect in late January and have had a dampening effect on non-EV vehicle sales there and in neighboring states, but they are now being challenged from two different directions. 

Second, the change of political party control of both the White House and the US Senate in 2025 increases the chance the Environmental Protection Agency (EPA) might seek to restrict California’s ability to enforce tighter air standards than Federal standards. This would require a reversal of previously held policy and run counter to typical EPA methods, but it is certainly possible.

Either way, there is hope the California regulations will not spread as quickly as originally feared and might even be loosened up a bit in the Golden State with the 5th largest economy in the world.

In fact, CARB itself has recognized the difficult situation it has created for some fleets that require customized work trucks running on diesel or gasoline power. They have responded with a growing number of end-user waivers that allow some purchases and builds that would otherwise be forbidden under the new regulations.

TRUCK BODY CUSTOMIZATION and SPECIALIZATION: As industries become more specialized, the demand for customized work trucks is increasing. Upfitters are responding by offering tailored solutions that meet the specific needs of various sectors, such as construction, plumbing, and electrical services. This includes specialized storage solutions, toolboxes, and equipment mounts that maximize utility and organization. The ability to customize vehicles to fit unique operational requirements is becoming a competitive advantage for both manufacturers and upfitters.

For the truck building professionals at Scelzi Enterprises, all this is great news. With three of their five production facilities located in California, the CARB restrictions have certainly posed an unwanted challenge. “An artificially restricted truck market,” states founder and owner Mike Scelzi. “California manufacturers have always led the nation in safe and clean production methods and didn’t need to be forced to do so. We are doing what we must do to meet customer needs, but CARB does not represent their interests, but is driven by another agenda. “

On the other hand, the move toward more customized work trucks is an ideal scenario for the team at Scelzi, who enjoy building “vanilla” utility service bodies, but excel when the bar gets raised higher. “Like the folks at Disneyland, we love making dreams come true,” declares Scelzi. “A work truck is more than a transportation vehicle to our customers; it’s the best tool in their toolbox AND the toolbox, too. We know that for many other upfitters their product quality will drop when they get outside their comfort zone, but not under our roof. We love the complex stuff and the challenges those jobs bring to our team, and our customers tell us it shows in the final product.”

At Scelzi Enterprises, the long-term trend is always “keep making the best truck bodies in the USA”, and not getting too concerned about any short-term blips on the radar screen. That is a strategy that has worked well for 45 years.

Scelzi Enterprises, Inc.