ACT: Classes 5-8 Orders Best Monthly Tally Since December 2014
NOV 3, 2017 - 6:56 am
According to ACT Research, preliminary North American Classes 5-8 net orders were 55,700 units in October, up 65% year over year.
“Seasonally adjusted, orders rose 5.7% from September to 48,900 units,” said Kenny Vieth, president and senior analyst at ACT Research. “For 2017 year to date, orders after seasonal adjustment have been very consistent, ranging from 41,400 units in May to October’s 48,900 unit tally.”
It should be noted that these numbers are preliminary. ACT will provide complete industry data for October, including final order results, later this month.
Preliminary October NA Class 8 net orders significantly surpassed expectations, rising to 36,200 units.
“October’s orders represented a 160% year-over-year jump from a particularly easy, cancellation impacted, year-ago comp,” Vieth said. “October is typically the second strongest order month of the year. As such, seasonal adjustment boost lowers the monthly intake to 31,600 units, or a 379,400-unit SAAR, up 20% from September.”
The strength exhibited by Class 8 orders in October highlights improving freight conditions and freight rates in 2017 that will lead to a rebound in carrier profitability in 2018.
“October’s preliminary orders clearly put upward pressure on ACT’s expectations for Class 8 demand next year,” Vieth said. “At the same time, we recognize the potential that this year’s NACV show [September] may have pulled-forward the timing of orders that would normally have been placed through the fourth quarter.”
Generally speaking, cross-collateralization is a fairly straightforward concept to people active in commercial finance. The idea is that any collateral pledged to a lender by its customer (referred to in this article as a debtor) secures every single obligation of... read more
From an operations standpoint, disruption evokes an air of anxiety and panic. What we’ve all experienced the last year and a half has made critical infrastructure break down as society and the equipment finance industry has coped with a rapidly... read more