February Class 8 truck orders exceeded tracking companies’ expectations. (Photo: Jim Allen/FreightWaves)
February Class 8 truck orders exceeded tracking companies’ expectations, suggesting fleets still have cash for new equipment.
It was the first time in the last five months that orders were higher year-over-year. The industry nearly hit a record in September and then retreated.
“Last year, total net orders reached 303,000 units. In any market, that’s a strong number,” said Eric Starks, chairman of FTR Transportation Intelligence, in a press release. “However, given the uncertainty in the economy, this is a particularly encouraging sign that demand has not collapsed and fleets continue to have access to capital.”
Manufacturers took 22,800 orders in February, up 13% from January and 10% from February 2022, FTR said. ACT Research showed orders slightly higher at 23,600, well above the company’s short-term average of 15,000 to 20,000 per month.
The pent-up demand for Class 8 could offset lower replacement orders
ACT estimates pent-up demand for about 60,000 Class 8 trucks, which means catching-up builds could offset a slowdown in replacement orders, according to Kenny Vieth, ACT’s president and senior analyst.
Supply chain disruptions that hampered manufacturers have eased in recent months, allowing for more bookings. But OEMs are carefully monitoring their backlogs in case supply chain problems escalate. The ebullient order intake in the summer months of 2021 resulted in thousands of orders being canceled and rescheduled by the manufacturer in October and November this year.
After a slowdown in order intake led to allocations to distributors, OEMs accepted a staggering 55,000 orders in September 2022. A decline, likely at the behest of manufacturers, followed, prompting experts to suggest lower but still decent orders for this year.
“While we expect to continue to feel the impact of truck allocation, production has gradually returned to normal,” said William “Rusty” Rush, President and CEO of Rush Enterprises, when announcing fourth-quarter earnings company on February 16.
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