Class 8 Truck Orders Fall To Lowest Level In Almost 3 Years
Little Rock, Arkansas – Class 8 truck orders fell to its lowest level in almost three years according to recent data from industry analysts FTR and ACT Research.
ACT Research reported preliminary North America Class 8 net order data showed the industry booked 10,800 units in May, while FTR tracked that number at 10,400 units.
May’s preliminary order data reflects a drop of more than 25% from April’s slow activity.
However, even more significant is that May’s preliminary figures amount to a drop of more than 70% from May a year-ago.
This is the lowest volume for Class 8 orders since July 2016 and the weakest month of May since 2009.
Class 8 orders for the past 12 months now total 360,000 units.
“May saw NA Class 8 orders fall below the 15,900 units averaged through the year’s first trimester, and year-to-date Class 8 net orders have contracted 64% compared to the first five months of 2018,” said Kenny Vieth, ACT’s President and Senior Analyst.
Don Ake, FTR vice president of commercial vehicles, commented, “May’s low orders were consistent with it being the last month in this year’s cycle. The 2019 order pattern was pulled ahead by three months, so May’s orders are similar to what you normally would see in August. Ordering for 2020 is expected to begin in June, with several OEMs expected to start taking orders for next year.
Despite the low order volume, Ake said OEM build rates remain at “robust levels.”
However, he conceded that could change if the economy continues softening and freight rates keep trending downward.
“Orders for the next couple of months should be a good indicator of fleet confidence about 2020,” Ake surmised.
For more on recent Class 8 monthly order reports click HERE.
(Image above courtesy of Volvo)