COLUMBUS, Ind. — Some of the recent Class 8 order strength is likely due to a small amount of pre-buying, but overall, May’s orders are likely anomalous, as the industry is in the weakest period of the year for orders, according to the latest report from ACT Research.
Final North American Class 8 net orders totaled an unseasonally high 23,560 units in May (29,2000 seasonally adjusted), up 51% year-over-year. Total Classes 5-7 orders fell 4.9% year-over-year to 19,306 units (20,900 seasonally adjusted).
“U.S. Class 8 tractor orders rose 51% year-over-year in May, and vocational truck orders increased 48% year-over-year,” according to Kenny Vieth, ACT’s president and senior analyst. “Again, these increases are largely untethered from current market conditions, and we expect next month’s orders to be more representative of the current market.”
Regarding inventories, Vieth said that between strong production and softening U.S. tractor sales over the past eight months, Class 8 inventories have risen quickly.
“The reported inventory decrease from March to May is attributed to a fire that broke out at a supplier plant, requiring OEMs to red tag units,” he noted. “Given build was 6,900 units above retail sales in April and May, inventories should have risen, rather than fallen the past two months. On that adjusted basis, Class 8 inventories have risen over 22,000 units the past nine months, reaching levels not seen since August 2019.”
Meanwhile, Class 8 cancellations increased in May to 2,623 units and 1.8% of the backlog on a nominal basis.
Seasonally adjusted, cancellations were 3,394 units and 2.3% of the backlog, above the long-term average of 2% for the first time in two years.
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
