ACT Research: Net Class 8 Orders Pull Back in April, with Backlog Essentially Filled
MAY 20, 2021 - 6:32 am
According to ACT Research’s latest State of the Industry: NA Classes 5-8 Report, April Class 8 net orders pulled back to a seven-month low, with benign cancellations. ACT Research said the order pullback was not due to any slowing demand, but was rather an indication that the 2021 backlog is essentially filled.
“As we’ve said for some time, commercial vehicle demand is hot, but supply chain problems persist,” Kenny Vieth, president and senior analyst at ACT Research, said. “Since the end of last year, ACT has been reporting that the 2021 question is not one of demand but rather supply. The freight economy continues to enjoy broad-based strength, evident in freight rates that caught fire last July and have remained at or near record levels for months. With freight rates at current levels, carrier profits are soaring. Finally, jammed ports, inventory restocking and persistently tight driver capacity suggest that the current freight and profitability landscape has legs, giving truckers the confidence to buy equipment.”
By commercial vehicle segment, Vieth said, “While demand is as strong or stronger than it has ever been for both medium- and heavy-duty vehicles, the industry’s ability to tackle that backlog has been beset by a series of issues that have thrown roadblocks in front of its ability to turn orders into trucks, including chip shortages, steel output and plastic resin availability. Capacity to produce Class 8 vehicles this year essentially is full, and using 2018 as a guide, we would expect OEMs to begin opening 2022 order books in June and July. Broad-based economic strength continues to build the best medium-duty market since ACT began reporting data, with the order trend eclipsing the prebuy-fueled market of 2006.”
Brokers are key contributors to the equipment leasing community and even if they aren’t utilized by every company, they provide a compelling benefit to those that do. According to Paul Fogle, managing director of Quality Leasing, his company saw the... read more
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