Commercial truck orders improved during August, according to preliminary data from two trucking industry analysis firms.
ACT Research said it expects that when final August data is released in mid-September, North American Class 8 orders will come in at 20,800 units, while FTR Associates data showed Class 8 orders at 20,513, an 11% increase over July.
Despite this modest improvement, the numbers were still down at levels not seen since October 2010, FTR cautioned. Nevertheless, it said, the pace of orders earlier this year was so strong that annualized Class 8 orders for the six-month period including August stand at 299,600 units, a significant improvement from a year ago.
"Although August numbers weren't spectacular, the fact that they reversed the downward trend we had seen over the past three months gave us an indication that fleet buyers are still in the market for new vehicles," said Eric Starks, president of FTR. "We were worried that orders might fall given the uncertainty in the economy. The current level of activity makes me breath a bit easier and suggests that fleets were not spooked into delaying orders."
Going forward, orders will primarily be for 2012 build since the manufacturer order boards are basically full for the remainder of this year, said Starks. Builders will not be taking any heroic measures to increase current production rates given the high level of uncertainty in the economy.
Despite current weakness, FTR is cautiously optimistic that these build rates will be supportable into 2012. However, if the economy turns sour in a big way, that certainly could change the dynamic.
On the medium-duty side, ACT projects Class 5-7 orders to reach 12,100 units, somewhat behind last year's level.
"Despite unfolding economic uncertainty, both Classes 5-7 and Class 8 posted solid gains compared to July," said Kenny Vieth, ACT's president and senior analyst. "While the Classes 5-7 volume was down versus last year, that comparison is to one of the strongest months of 2010. When Class 8 is taken into account, total Classes 5-8 commercial vehicle net orders posted a very solid year-over-year performance."
ACT Research said it expects that when final August data is released in mid-September, North American Class 8 orders will come in at 20,800 units, while FTR Associates data showed Class 8 orders at 20,513, an 11% increase over July.
Despite this modest improvement, the numbers were still down at levels not seen since October 2010, FTR cautioned. Nevertheless, it said, the pace of orders earlier this year was so strong that annualized Class 8 orders for the six-month period including August stand at 299,600 units, a significant improvement from a year ago.
"Although August numbers weren't spectacular, the fact that they reversed the downward trend we had seen over the past three months gave us an indication that fleet buyers are still in the market for new vehicles," said Eric Starks, president of FTR. "We were worried that orders might fall given the uncertainty in the economy. The current level of activity makes me breath a bit easier and suggests that fleets were not spooked into delaying orders."
Going forward, orders will primarily be for 2012 build since the manufacturer order boards are basically full for the remainder of this year, said Starks. Builders will not be taking any heroic measures to increase current production rates given the high level of uncertainty in the economy.
Despite current weakness, FTR is cautiously optimistic that these build rates will be supportable into 2012. However, if the economy turns sour in a big way, that certainly could change the dynamic.
On the medium-duty side, ACT projects Class 5-7 orders to reach 12,100 units, somewhat behind last year's level.
"Despite unfolding economic uncertainty, both Classes 5-7 and Class 8 posted solid gains compared to July," said Kenny Vieth, ACT's president and senior analyst. "While the Classes 5-7 volume was down versus last year, that comparison is to one of the strongest months of 2010. When Class 8 is taken into account, total Classes 5-8 commercial vehicle net orders posted a very solid year-over-year performance."
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