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

Recent data published by ACT Research stated that new and net orders for Class 8 vehicles hit six-month highs in October at 29,824 units and 28,026 units, respectively.

By ·

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, 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!

Article Topics

ACT Research · Trucking · All Topics
Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....