Trucking news: ACT reports trailer net orders up nearly 60 percent
June 28, 2010
The market for Class 8 vehicle equipment continues to resonate with good news for orders and production. The most recent news comes from ACT Research Co., a provider of data and analysis for trucks and other commercial vehicles, whom reported that commercial trailer net orders in May were up 59 percent year-over-year.
On a year-to-date basis, net orders for trailers are up 69 percent, said ACT, coupled with order cancellations running low as truck fleets continue to see increased demand for services.
“All signs are indicating that freight growth is rapidly absorbing excess truck capacity,” said Kenny Vieth, senior analyst and partner with ACT Research, in a statement.
Last week, ACT reported that net orders for heavy-duty Class 8 commercial vehicles were up 84 percent in May year-over-year.
In its “State of the Industry: Classes 5-8 Vehicles,” ACT reported 13,231 net orders of Class 8 vehicles. They said that more than half of the orders are scheduled for delivery in the third quarter, which is a strong sign that truck fleets are looking to get new units on the road before the peak fall shipping season.
This report follows a recent ACT forecast which cited a strengthening North American economy and improving supply/demand balance of freight hauling truck capacity, serving as the catalysts for a continuing rebound of orders and production of commercial vehicles is underway.
In its ACT North American Commercial Vehicle Outlook that its 2010 forecast for Class 8 vehicle production was increased by 4,500 units. This brings to total projection to 146,000 units, according to Vieth. Despite the increase, Vieth told LM in a recent interview that a typical unit replacement figure is about 200,000.
“The good news is the forecast is going up and also that even though the forecast is going up it is still well below replacement levels for equipment so capacity continues to bleed out of the market, with incremental improvement in demand,” said Vieth.
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