COLUMBUS, Ind. – The Class 8 truck market is moving into a significant correction next year, according to ACT Research.
The medium-duty truck market remained soft in July, indicating it has moved past its cyclical peak, according to ACT’s recently released Transportation Digest.
“Our Class 8 outlook remains basically unchanged, with current inventory levels a major negative factor, as a classic inventory liquidation cycle, in the face of declining demand, widens the spread between sales and build,” said Kenny Vieth, ACT’s president and senior analyst.
“By now this ‘regression to the mean’ for 2020 is less a forecast than merely seeing through a pattern already in place, with 2019 net orders year-to-date through the August preliminary tally running at a fraction of the orders pace of the same period in 2018. It’s pretty clear that the next chapter of this story will not be a happy one, and it will also impact equipment demand in adjacent sectors, such as construction, oilfield and gas, farm machinery, and industrial.”