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

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Article Topics

News · Trucking · ACT Research · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA