ACT: May Data Show Depth of Supply Chain Disruption in CV Industry
JUN 4, 2020 - 6:36 am
ACT Research preliminary NA Class 8 net orders were 6,700 units in May, up 56% from April, but down 38% from a very easy year-ago comparison. Living up to its “steady” moniker, the NA Classes 5-7 market saw orders improve 5.3% month-over-month, despite being down 57% from the year-ago May volume. Complete industry data for May, including final order numbers, will be published by ACT in mid-June.
“Reflecting the state of the broader economy, there was little to cheer about in May’s industry order activity,” Kenny Vieth, president and senior analyst at ACT, said. “Considering COVID-related lock downs across the U.S. and North America at the start of the month, and a slow reopening occurring through May in most areas, it was not an exercise building customer confidence.
“Restarting the manufacturing sector from a full stop was only partly successful, as Mexico’s lock downs remained in effect well after the U.S. began to reopen, resulting in challenging supply-chain dynamics and fragmented supplier sourcing.”
ACT’s State of the Industry: Classes 5-8 Vehicles 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 activity-related measures such as backlog, build, inventory, new orders, cancellations, net orders and retail sales. Additionally, Class 5 and Classes 6-7 are segmented by trucks, buses, RVs and step van configurations. The Class 8 market is segmented into trucks and tractors, with and without sleeper cabs. The report includes a six-month industry build plan, a backlog timing analysis, historical data from 1996 to the present in spreadsheet format, and a ready-to-use graph package. A first look at preliminary net orders is also published in conjunction with this report.
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
By the end of 2019, there were 279.6 million vehicles operating on roads nationwide. Of these, government agencies operated nearly 1.2 million vehicles, as reported in the most recent Bureau of Transportation Statistics Report . The U.S. federal government operates... read more