ACT says Class 8 net orders heading in the right direction

On the heels of a promising projection for fourth quarter 2010 Class 8 vehicle net orders, ACT Research, a provider of data and analysis for trucks and other commercial vehicles, said that December net orders of heavy-duty Class 8 commercial vehicles for North American markets at 27,044 units were up 128 percent year-over-year.

By ·

On the heels of a promising projection for fourth quarter 2010 Class 8 vehicle net orders, ACT Research, a provider of data and analysis for trucks and other commercial vehicles, said that December net orders of heavy-duty Class 8 commercial vehicles for North American markets at 27, 044 units were up 128 percent year-over-year.

ACT said in its most recent edition of “State of the Industry: Classes 5-8 Vehicles” that Class 8 orders in December hit its highest monthly total since May 2006, with full-year production of Class 8 vehicles up 30 percent over 2009 at 154,290 units.

“Unlike previous cycles that have been dominated by the U.S., there is a greater breadth of geographic demand for Class 8 equipment this time,” said Kenny Vieth, president and senior analyst, in a statement. “While U.S. demand is ramping nicely, orders bound for Canada; Mexico; and non-NAFTA export markets remain at healthy levels,” added Vieth.

Earlier this month, ACT projected full-year 2010 Class 8 production to come in at about 154,500 units for a 31 percent gain over a weak 2009 and remains below normal replacement demand. The firm added that it expects demand to continue over the next two years, calling for 2012 and 2013 production to top 300,000 units. On the trailer side, ACT expects production to hit annual growth rates north of 50 percent in 2010 and 2011 compared to a weak 2009.

In a recent interview with LM, Vieth said that “all the stars are aligning” when it comes to Class 8 demand and the current environment.

As 2010 progressed, Vieth said there was a continued shrinkage of Class 8 fleets, with fewer Class 8 trucks on the road at the end of 2010 than there were at the beginning of 2010.

“We had growing freight volume throughout 2010, especially in the first half of the year,” said Vieth. “With freight growing and the tractor supply falling, trucker profitability rose. And used truck prices went up throughout the year. In December 2009, the average used truck price was roughly $35,000-to-$36,000, and at the end of 2010 that price was more than $43,000.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Outsourcing the Indirect Supply Chain
This in-depth whitepaper takes you through the journey that Smith & Nephew - a global research, development and manufacturing company of medical devices and products - underwent when initially looking for a provider to manage their tool cribs and eventually decided on an end-to-end supply chain management firm. Outsourcing white papers, SDI medical device manufacturing
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo