October Marks “Turning Level” in Class 8 Orders – Tools
North American Class 8 web orders for October remained elevated for the second consecutive month, coming at 43,200 models, in response to FTR.
Graph: FTR
Elevated truck orders in October means there may be nonetheless an incredible quantity of pent-up alternative demand within the Class 8 market as a result of constricted manufacturing setting of the previous two years that has restricted many fleets from changing aged gear, FTR officers reported.
North American Class 8 web orders for October remained elevated for the second consecutive month, coming in between 42,500 and 43,200 models, in response to ACT Analysis and FTR knowledge, respectively.
October order exercise was down 23% month over month, however up 77% 12 months over 12 months, with Class 8 orders now totaling 271,000 models for the final 12 months, FTR officers wrote in a press launch.
“OEMs are actually filling construct slots nicely into Q2 and the early a part of Q3 2023,” Charles Roth, industrial car analyst for FTR, mentioned. “Part shortages proceed to be a week-to-week challenge; nonetheless, the general sentiment from producers is optimistic that enhancements will probably be made within the coming months and all through the primary half of subsequent 12 months.”
Roth says October was the turning level for the Class 8 market.
“Whereas we face headwinds within the freight market, general fleet sentiment stays optimistic,” he mentioned. “Whereas some OEMs have indicated that they’ve carried out allocation plans for sellers, the retail channel is one other phase of the market that has but to have the ability to preserve ample ranges of stock as a result of restricted availability of provide.”
With two robust months of web orders, there may be the potential for a gradual lower month over month in web orders as we shut out the 12 months, he mentioned.
“We proceed to count on a freight recession, and an eventual financial recession (delicate to medium in magnitude), however OEMs at this level have clear visibility to a powerful [first half of 2023] (barring any unexpected cataclysmic occasions),” mentioned ACT’s Vice President and Senior Analyst Eric Crawford.
