FTR and ACT Research announced today that data is showing that Class 8 truck orders have fallen for the third consecutive month and has hit the lowest level since September 2012.
FTR and ACT say the numbers show that Class 8 orders fell 12% month-over-month and 37% year-over-year. Over the last 12 months Class 8 order have totalled just 245,000.
“Orders were slightly below expectations as the market continues its downward slide,” said Don Ake, v.p. of commercial vehicles at FTR. “Fleets are being very cautious in the current uncertain economic environment. Freight has slowed due to the manufacturing recession, so they have sufficient trucks to meet current demand. Some fleets are also delaying replacing older units until conditions improve. There are very few dealer stock orders, since inventories are sufficient and OEM lead times are short.”
ACT Research added that demand for medium-duty vehicles is on a steady rise.
“MD and HD demand, as mirrored by new order activity, remain on divergent paths that are tracking their niches in the broader economy,” said Kenny Vieth, ACT’s president and senior analyst. “In the case of MD demand, a decent jobs market and rising incomes continue to support discretionary spending and improved housing activity, but ongoing weakness in the freight-rich manufacturing sector and excessive inventories in the broader economy continue to weigh on new HD demand.
“For medium-duty vehicles, the slow but steady rise in the order trend remained evident in March, with orders rising 4% against a tough y/y comparison. Order strength through Q1 continues a period of meaningfully stronger orders which began last September.”