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
B2B Sellers Prefer a Unified Approach for Ecommerce
A new study from Forrester Consulting, commissioned by NetSuite, found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
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
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
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...