Orders for Class 8 trucks in February exceeded tracker expectations. (Photo: Jim Allen/FreightWaves)
Orders for Class 8 trucks in February exceeded the tracking company’s expectations, suggesting the fleet still has cash to buy new equipment.
For the first time in five months, orders increased year over year. The industry nearly hit the record in September and then retreated.
“Over the past year, total net orders have reached 303,000 units. This is a strong number in any market,” said Eric Starks, Chairman of FTR Transportation Intelligence, in a news release. “But given the economic uncertainty, this is a particularly welcome sign that demand has not collapsed and the fleet still has access to capital.”
Manufacturers received 22,800 orders in February, 13% higher than January and 10% higher than February 2022, according to FTR. According to ACT Research, orders are slightly higher at 23,600, well above the company’s monthly average of 15,000 to 20,000 in the short term.
Sluggish Class 8 demand may offset decline in replacement orders
ACT estimates potential demand for about 60,000 Class 8 trucks, according to ACT president and senior analyst Kenny Vieth.
Supply chain disruptions that have hampered manufacturers have eased in recent months, allowing more bookings. But the OEM keeps a close eye on its backlog in case troubles in his chain of supply escalate. Due to the influx of orders in the summer of 2021, he had thousands of orders canceled and retimed by manufacturers in October and November of that year.
OEMs received a staggering 55,000 orders in September 2022 after a slowdown in order intake led to allocations to dealers. The decline, likely at the request of manufacturers, continues, with experts suggesting fewer but still decent orders this year.
William “Rusty” Rush, president and CEO of Rush Enterprises, said in the company’s fourth quarter earnings call on February 16, “We expect the impact of truck quotas to continue to be felt, but production is expected to return to normal. starting.
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