Truck News


Truck builders reducing inventories

Production should realign with demand in 2017, ACT Research reports

COLUMBUS, Ind. – Truck producers are making progress in reducing inventories, which should see production realign with demand in 2017.

That according to ACT Research, in its analysis of December and full-year 2016 truck production volumes.

North American Class 8 retail sales firmed at the end of 2016, ACT reports, rising to a six-month high of 21,281 units sold. That brought the total for 2016 to 249,952 units. A total of 228,347 Class 8 trucks were built during the year. Strong December sales coupled with modest production, reduced the industry’s inventory overhang by 6,300 units, ACT reports.

The year ended with a 36-month low inventory of 44,865 units.

“Going forward, the big inventory pulldown into the end of the year, and the full-year inventory correction, will allow industry production to more closely align itself with demand,” said Kenny Vieth, ACT Research president and senior analyst.

Classes 5-7 orders ended the year strong, rising above 20,000 units for only the second time since April. In December, net orders reached a nine-month high of 22,083 units.

The consistency in medium duty vehicle orders the past two years is almost unheard of, and there is little to suggest a change of trend in 2017, ACT says.

“Given that consumer-related medium-duty economic drivers remain largely unchanged, our expectations are for more of the same in terms of MD demand in 2017,” said Vieth.

Print this page
Related Articles

Have your say:

Your email address will not be published. Required fields are marked *