Subscribe to our free, weekly email newsletter!


ACT says October demand for Class 8 trucks is better than expected

By Jeff Berman, Group News Editor
November 21, 2011

Recent data published by ACT Research, a provider of data and analysis for trucks and other commercial vehicles, stated in its most recent State of the Industry report that new and net orders for Class 8 vehicles hit six-month highs in October at 29,824 units and 28,026 units, respectively.

On the net orders side, this tally exceeds previous expectations from ACT earlier this month, when the firm called for 27,700 Class 8 net orders. The firm said that this most recent batch of data suggests that 2011 will end up in good shape with production at or above 250,000 units, as well as pave the way for what it described as a robust 2012.

“News from carriers is good,” said Kenny Vieth, president and senior analyst at ACT, in a statement. “Expectations for future freight and profitability are upbeat. Coupling truckers’ positive outlook into 2012 and the better than consensus economic news supports demand levels that we are seeing in the Class 8 market.”

In an interview with LM, Vieth said that the strength in new orders is broad-based in the sense that it is not just United States-based demand but also from Canada and what he called other non-NAFTA export markets, which are pointing to a combination of healthy market activity and a weak dollar.

These factors, he said, are making North American heavy duty trucks a very attractive global proposition.

“In the U.S. market, September was the first sales month in which sales reached what we could consider to be replacement levels for Class 8 trucks in the U.S. market,” said Vieth. “We are certainly working through considerable pent-up demand. There was no need to replace trucks in 2009, but the economy has been growing since the second half of 2009. Excess capacity in the industry was consumed through about the middle of 2010, and since then we have been ‘cutting into muscle.’ Capacity has still been leaving the economy even as the economy has been growing since mid-2009.” 

About the Author

Jeff Berman headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Carloads headed down 2.5 percent annually to 286,660, and intermodal containers and trailers remained on a growth path, up 2.3 percent to 270,952.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.

Article Topics

News · Trucking · ACT Research · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA