November Class 8 orders down compared to October, says ACT Research

Despite decline, ACT says demand is still solid.

By ·

New orders for Class 8 trucks in November were down from October, according to ACT Research, a provider of data and analysis for trucks and other commercial vehicles.

Earlier this month, ACT predicted that November orders would come in around 20,700, which would represent about a 25 percent decline from October’s 24,354, the third best month for orders in 2011 based on ACT’s data.

The firm’s final tally for November orders was very close to its estimate at 20,603 orders. But even with this decline, it noted that the demand situation for Class 8 vehicles remains favorable.

“We believe special factors, such as the near selling out of remaining 2011 build slots in October and cancellations in export orders in November, were responsible for the boost in order activity in October and the fall-off in order activity in November,” said Kenny Vieth, president and senior analyst at ACT, in a statement. “Our suggestion is to look at October and November in aggregate. Doing so generates average monthly net orders of 24,400 units.”

In an interview with LM, Vieth said there were a few reasons for looking at October and November numbers in aggregate form.

Despite the disparity in the orders between the two months, he explained that not a lot changed within the industry on a substantive basis in terms of freight levels, trucking profitability, or in used truck prices.

“In that regard, we remain pretty bullish on the underlying demand trends,” said Vieth.

He added that even a slight improvement in volume or demand could spur a decent uptick in orders, too.

When asked how things are trending out order-wise for the month of December, Vieth said that visibility into that is not clear, although he noted that because of the 100 percent bonus depreciation allowance for capital goods deduction, which expires at the end of 2011, points to a good retail sales month for trucks in December.


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
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
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...