COLUMBUS, Ind. — After May’s anomalous order number, June’s activity offered a more reflective view of current market conditions, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report.
“The Class 8 backlog fell 15,516 units m/m in June to 127,917 units,” said ACT’s president and senior analyst, Kenny Vieth. “With two fewer production days, June’s build rate increased to an incredibly strong 1,609 units per day. Given where we are on the calendar, stronger build than orders should continue to push the backlog lower in the coming months.”
Final North American Class 8 net orders totaled 14,604 units in June (18.2k seasonally adjusted), down 13% y/y as we move through the weakest period of the year for orders.
According to Vieth, a plant fire in April that caused the red tagging of numerous units continues to require some reading between the lines regarding Class 8 inventories. On ACT’s calculated basis, the Class 8 inventory rose to an all-time high close to 92,500 units in June, versus the 85,400 units reported. Our calculated inventory surpasses August 2019 on the ‘we’ve got an inventory problem’ list.”
“Class 8 retail sales were 24,267 units, or 22.8k seasonally adjusted, down 19% y/y,” Vieth said. “The decline was more than covered by tractors, which fell 26% y/y, even as vocational units held their own, rising 2.7% y/y. On that seasonally adjusted basis, June’s retail number was the weakest since February 2022, back when supply chains were constraining the market.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
