“September NA Class 8 retail sales reached a new record in seasonally adjusted terms, and in absolute terms were the highest since December 2006, ahead of the EPA07 emissions standards. While most of the incremental strength came from the straight truck market, tractor capacity was added a touch faster than expected,” said Tim Denoyer, ACT Research vice president and senior analyst. “We realize this seems to conflict with signs of capacity contraction such as bankruptcy and employment data, and would remind readers that private fleets, which now account for more than half of truckload capacity, are still growing.”
Speaking about the Class 8 market, Denoyer said, “In concert with weak/deteriorating freight volumes and rates, forward-looking demand indicators continue to erode, with mid and downstream data points beginning to cycle lower. Ultimately, the current situation of weak orders and strong build is unsustainable, and downward build plan revisions are happening. That said, the worst-case scenarios for heavy vehicle demand remain unlikely.”
Regarding the medium duty markets, he commented, “Medium duty demand metrics remain in better balance, but there are signs of fraying on weak net orders, relative build strength and excessive inventories.”
ACT’s State of the Industry: Classes 5-8 report provides a monthly look at the current production, sales, and general state of the on-road heavy and medium duty commercial vehicle markets in North America. It differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing measures such as backlog, build, inventory, new orders, cancellations, net orders, and retail sales.
It happens all the time. You finance a customer’s acquisition of equipment and the customer subleases the equipment. While there is nothing inherently wrong with such arrangements, several potential issues arise which, if not carefully addressed, could expose a finance... read more
Throughout the past five years, several organizations have published multiple studies attempting to quantify the impact of various levels of corporate diversity on increased shareholder value, customer satisfaction and employee engagement, otherwise known as the “Big Three.” “Why Diversity Matters,”... read more