YoY: Class 8 Vehicle Orders Down 42% In February
The demand for Class 8 trucks has been down by 42% in February 2016 since last year with only 18,078 net orders booked. But on the other hand, the demand and booking for Class 5-7 vehicles have shown a positive increase, the highest since December 2014, with 22,316 units booked and in the process of manufacturing. This data was recently quoted in one of the reports published by ACT Research.
The report published covered the entire vehicle market of class 5 to class 8 trucks and trailers in North America.
Speaking about the decline, ACT’s principal, industry analyst, Jim Meil believes that despite the expected progress in the demand of these heavy-duty trucks, the start of this year has been very disappointing. He attributed three main reasons for the cause – extensive freight-hauling ability, an overstock of heavy-duty trucks, and a poor fright pricing environment.
“The commercial vehicle industry, primarily the heavy truck segment, continues to struggle with adjustments in response to last year’s optimism and resulting overshoot.” He further added, “Problems persist with excess freight-hauling capacity, a weak freight pricing environment, and the overstock of heavy-duty trucks at dealerships.”
Although tentative, Meil believes that there are some bright spots that ACT researchers forecasts. They may require some time to gain momentum and impart a positive turn on the market.
Meil also seemed hopeful when talking about the future of medium-duty trucks. “Meanwhile, medium duty is well positioned for continued steady growth into 2016,” he said.
Meil believes that reason for this steady growth includes healthy balance sheets, which result in consumers showing interest in the industry for investment, improved local and state budgets, and improvement in new house constructions.
But even if this steady growth remains stable, other sectors in the trucking industry will have to pick up speed. With a declining job market and a weak demand for Class 8 and heavy-duty trucks, the trucking industry is experiencing a crisis. Whatever the future holds, ACT will keep the industry informed.
For years now, ACT has been a pioneer leader of publishing news, statistics, market analysis and forecast charts about commercial and used vehicles industry in the North American trucking market, the China commercial vehicles market, and the U.S. tractor-trailer market.