ACT: March’s Class 8 Backlog Rises for Fifth Straight Month
APR 19, 2017 - 6:57 am
According to ACT Research, thanks to the healthy order levels noted at the beginning of the month, coupled with what are still fairly restrained build levels, Class 8 backlogs increased again in March.
The month-ending data from March indicates that the second quarter fill rate is running well ahead of historical norms. OEM build plans now stretch into September, and show a significant ramp-up in the second quarter that is largely continued in the third.
“Q3 fill is running at 42%, which is in line with previous-year patterns, suggesting that the build plan is solid,” said Jim Meil, principal and industry analyst at ACT Research.
Inventory levels in March were almost unchanged from February. Retail sales were up 30.7%, but down 20.0% from March 2016. With the month-over-month hike in retail sales, the inventory/sales ratio fell in closing of Q1/17. Sizable progress has been made in downsizing inventories since Q4/15 when the unit count topped 70,000.
“While there still is some trimming to do to reach an inventory/sales ratio target range of about 2.2, the heavy lifting is now pretty much accomplished,” Meil noted.
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
Joe Nachbin’s passion for equipment finance was so strong, he remained dedicated to his work until two hours before he passed away in July 2022, according to his wife, Ruby Nachbin. Attorney and investment banker, Paul Bent, senior managing director... read more
Robert Preville is a serial entrepreneur and investor constantly on the move, having founded and led several high-growth companies in the B2B arena before leading APPROVE, an embedded finance software. Earning this year’s Disruptor Icon award, Preville’s approach to leadership... read more