MY ETT News » Sales

Drop in Class 8 net orders chalked up to seasonality

Mryan — Fri, 27 Aug 2010 19:50:29 +0000

Like net trailer orders, Class 8 net orders fell 27 percent from June to July this year, but overall sales are trending upward, according to ACT Research’s State of the Industry: Classes 5-8 Vehicles report. Analysts attributed the month-to-month decline in part to seasonality. Medium-duty trucks showed the strongest improvement, up 100 percent from July 2009. As trucking company profitability continues to strengthen, Class 8 sales will
continue to rise.

COLUMBUS, Ind. — A 27% decline in Class 8 truck net orders in July was a reflection of seasonal buying patterns and the momentum of Class 8 demand continues to be positive, according to the latest State of the Industry: Classes 5-8 Vehicles report published by ACT Research.

July net orders were 27% higher than July 2009, the company noted. In July, there were 11,667 net orders for Class 8 commercial vehicles in North America. Net orders of medium-duty trucks rose both month-to-month and year-over-year. Compared to July 2009, medium-duty net orders were up 100%, ACT reports.

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Trailer orders stay strong despite dip

Mryan — Fri, 27 Aug 2010 19:31:22 +0000

Though new trailer orders took a dip from June to July this year, industry analysts remain positive about the overall direction of the market. According to data from ACT Research, Co., last month’s numbers showed a 74 percent improvement over the same time last year. And the largest segment of commercial trailers, dry vans, saw something of a comeback with a 134 percent jump from July 2009. As far as the 9 percent decline in new orders from June to July, researchers say bear in mind the continued effects of a very weak 2009. Despite these tentative numbers, ACT Research showed the demand for used trailers, particularly late models, a strong and improving segment of the market. Pricing for used trailers has rebounded, though supply is an issue since customers are holding on to their equipment longer.

Commercial trailer net orders stayed strong in July this year, according to data compiled by ACT Research Co., with orders up 74% over July 2009 – continuing a healthy rebound from what was one of the worst years in the commercial trailer industry, the firm said.

Though ACT noted that July’s 10,688 net orders for trailers represented a 9% decline from June of this year, the company believes nominal seasonality is the main reason for the drop. In fact, according to its information, the most recent six months of commercial trailer net orders are the best six-month span since the period ending February 2008.

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Truck trailer orders keep on climbing

Mryan — Wed, 30 Jun 2010 17:34:27 +0000

Improving truck trailer orders mean increased production, but according to ACT Research Co. (ACT) backlogs are rising, as well. ACT’s latest State of the Industry: U.S. Trailers noted that backlogs jumped 10 percent in May. The good news for the industry and for the economy is that May’s trailer orders are up 59 percent from the same month last year. Even better, there are few order cancellations, according to ACT, because fleets are seeing a growing demand for their services.

A according to ACT Research Co. (ACT), May commercial trailer net orders were up 59% from the prior year month—“continuing a healthy rebound from a very weak 2009.” Through May, year-to-date net orders for trailers are up 69%, noted ACT.

In the latest release of its State of the Industry: U.S. Trailers, ACT pointed out that order backlogs rose an additional 10% in May.

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New truck sales: Recovery has long way to go

Mryan — Thu, 24 Jun 2010 19:32:07 +0000

Recent spikes in new truck sales may not be a sign of prosperity to come any time soon, according to various research firms, like Standard and Poor’s and FTR Associates and industry analysts. Now, FTR Associates is saying, that the jump may be the optimistic part of the rebound-then-fizzle-out sales cycle experienced in the 1982 recession. If that’s the case, truck sales have a hard road ahead to approach recent peak levels in the U.S. in 2006 and Europe in 2008. Overcapacity and weaker freight will continue to plague the industry, though circumstances may not be as dire. Demand for trucks is high in developing markets, such as Brazil, China and India, but only Brazil and other neighboring countries appreciably contribute to global truck makers’ profits.

Sales of new trucks across the globe are projected to stay below recent “peak levels” for several years to come, according to a recent analysis. That’s no surprise to truckers in the U.S., given the steep rise in sticker prices due to new emission rules along with a freight market that is still down in the dumps.

Standard & Poor’s is the latest research firm to note that demand around the world for new trucks over the next few years could remain far below the peak levels achieved in Europe in 2008 and for North America back in 2006.

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Trucking, commercial vehicle sectors continue rebound

Mryan — Wed, 19 May 2010 15:20:17 +0000

The latest North American Commercial Vehicle Outlook from ACT Research suggests increased Class 8 production in 2010 and 2011. Buoyed by a stronger economy and tightening capacity, Class 8 truck production is predicted to show a 19 percent year-over-year increase this year, followed by an anticipated 67 percent year-over-year climb in 2011. Though the projected growth is still well below replacement level demand, according to ACT Research officials, they say anecdotal evidence suggests many fleets’ desires to replace idled and aging equipment.

A strengthening North American economy and rapidly tightening capacity in the truckload sector are setting the stage for significant demand for new equipment in 2011, according to ACT Research.

In the latest release of the North American Commercial Vehicle Outlook, ACT increased its forecast for heavy-duty (Class vehicle production by 6,000 units, boosting year-over-year growth in 2010 to 19%.

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Commercial trailer net orders rise to two-year high

Mryan — Tue, 06 Apr 2010 18:47:17 +0000

Based on the latest month-to-month and year-over-year numbers, analysts at ACT Research Co., are optimistic that the increases indicate a tightening of truck capacity, which will lead to increasing freight rates and profitability for fleets. That in turn will boost demand for new trucks and trailers. In February, commercial trailer net orders hit their highest mark in two years, and dry van orders recorded triple-digit increases in month-to-month and year-over-year numbers. Reefers, which performed better in the recession, posted a 45 percent year-over-year increase in orders.

February commercial trailer net orders were up 168 percent from February 2009 and were at their highest level in two years. Dry van orders were strong, posting triple-digit increases on both a month-over-month and year-over-year basis, according to ACT Research Co., which noted widespread improvement with year-over-year growth in seven of the nine trailer segments.

Reefer van orders, which generally performed the best during the recession, posted a year-over-year gain of 45 percent. The improved orders pushed total trailer backlogs to the highest level in 17 months, which will support a gradual increase in production rates.

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Trucks sales should rise in late 2010 and on into 2011

Mryan — Thu, 18 Feb 2010 22:00:28 +0000

Industry analysts continue to point to mid-2010 as the point at which dramatic improvements needed to boost truck sales will take place. According to ACT Research Co. (ACT), the trucking industry will strengthen in the second half of the year, in turn boosting demand for commercial vehicles later in 2010 and into 2011. With used truck values increasing and finance firms less likely to extend credit to keep struggling carriers alive, the stage will be set for the spike in freight, caused by higher carrier bankruptcies, to create dramatic improvements in the demand for commercial vehicles.

According to ACT Research Co. (ACT), current economic and transportation sector trends continue to point to strengthening in trucking in the second half of 2010. And that will in turn create stronger demand for commercial vehicles late in the year and into 2011.

ACT still projects heavy-duty (Class vehicle production should grow 18% year-over-year in the first half of 2010, largely due to stronger orders late in 2009 in advance of the latest EPA engine emissions mandate. But with fundamentals expected to improve in the truckload market by mid-year, demand is expected to increase into the end of 2010.

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Truck orders bottoming out

Mryan — Tue, 09 Feb 2010 18:46:07 +0000

Total net orders for Class 8 trucks have reached their lowest levels since July of 2002, giving some analysts hope that perhaps that number has hit bottom. While it may have reach the point at which it will post gains, market researchers tend to think it may have a lot more to do with the hefty price tags 2010-emission compliant equipment carries, not to mention the uncertainty of its return on investment. With this in mind, analysts say perhaps many fleets will hold off on buying until they see more concrete numbers on ROI or whether any serious maintenance issues crop up.

Preliminary data indicates Class 8 truck total net orders for all major North American OEMs dropped to 6,221 units in January this year, according to research firm FTR Associates. That marks the lowest level reached since July of 2002.

January’s order activity – which includes the U.S., Canada, Mexico and Exports – is down 46.4% from December and 20.1% lower than the same month in 2009.

Yet this falloff in net orders isn’t unexpected, Eric Starks, FTR president, told FleetOwner, and orders should remain down for the next three months or so.

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Truck tonnage pegged to remain modest this year

Mryan — Thu, 04 Feb 2010 16:57:52 +0000

The outlook for growth in truck tonnage for 2010 is modest at best, according to trucking groups and research analysts, affected mostly by continued sluggish consumer spending and business investment. Still, they say, the trucking industry is headed in the right direction, albeit slowly. Anticipated modest increases will help move the industry along. However, the real shot in the arm would be greater consumer confidence, leading to moving more inventory. But that may not happen until job and income prospects improve.

Confidence Boost: Modest Freight Outlook Needs Consumers' Help

Despite a two-month surge in trucking tonnage at the end of 2009, freight volumes are still predicted to be modest at best for most of 2010–largely because consumer spending and business investment are predicted to remain sluggish through this year.

“The robust tonnage numbers in November and December [last year] were aided by better economic growth as well as a positive inventory effect,” said Bob Costello, chief economist for the American Trucking Associations (ATA).

“However, economic activity is expected to moderate in the current quarter, which will keep a lid on tonnage growth,” he stressed.

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Class 8 orders finish 2009 strong

Mryan — Wed, 27 Jan 2010 20:40:01 +0000

The boost in Class 8 truck orders to close out 2009 is being attributed to pre-buys before 2010 federal emissions standards take effect, as well as higher volumes from Mexico and other export markets. Net orders for December posted a 37 percent year-over-year increase, though numbers for the year were 33 percent below 2008 levels. According to the report released by the ACT, the last four months of 2009 were the strongest of the year.

COLUMBUS, Ind. — Net orders for Class 8 trucks were up 37% year-over-year in December, according to the latest State of the Industry: Classes 5-8 Vehicles published by ACT Research.

The report concludes that the last four months of 2009 were the strongest in a very soft year. For the full year, Class 8 net orders were 33% below 2008 levels, ACT reports. Medium-duty Class 5-7 net orders were down 8% year-over-year in December and down 35% for the full year.

Click here to visit Truck News and read the complete story.