Class 8 orders weak in January due to ‘supply-side shortages’
Class 8 orders in January totaled just 21,300 units, with Classes 5-7 orders dropping to 16,500, according to preliminary data from ACT Research.
The industry analyst attributes weak order activity to continuing component shortages, which have kept OEMs from taking new orders.
“Constrained production capabilities and long backlogs continue to hamper new order activity. Order weakness continues to be primarily, if not entirely, due to supply-side shortages that continue to restrict production,” said Kenny Vieth, ACT’s president and senior analyst.
“As has been the case for months, we reiterate that with critical economic and industry demand drivers at, or near, record levels, industry strength should be measured by long backlog lead times, rather than tepid new order activity.”
Vieth added: “For Class 8, with backlogs stretching through 2022 and still no clear visibility on the easing of the everything shortage, January’s net order haul reflects the ongoing conservative approach by OEMs looking to limit the risk of overbooking and underbuilding that plagued the industry in 2021.”
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