REPORT: Class 8 Truck Orders Fall Sharply, Build Rates Expected to Slow into 2020
Columbus, IN – North America Class 8 truck orders fell sharply in November from October according to new data compiled by trucking market analyst ACT Research.
ACT reports preliminary North America Class 8 net order data show the industry booked 17,500 units in November, down 20% from October.
Classes 5-7 orders fell 8% m/m, to 15,300 units.
“Preliminary November data show that Class 8 net orders failed to sustain October’s encouraging start to the order season,” said Tim Denoyer, ACT’s Vice President and Senior Analyst.
Denoyer analyzed, “The freight market downturn worsened in the past month and uncertainty surrounding trade and tariffs continue to weigh on truck buyers’ psyches.”
Further, Denoyer said, “While private fleets continue to add capacity on the retail end, the market is increasingly heeding for-hire price signals and the stage is being set to right-size the fleet, bringing it closer to equilibrium with the work to be done.”
Regarding the medium duty segment, Denoyer added, “This marks an eighth consecutive month of below-trend net order activity, likely reflecting souring investment sentiment amid ongoing trade uncertainty and adding pressure to the 2020 production outlook.”
In a report released late last month, ACT Research noted that expectations for the Class 8 and trailer markets in 2020 anticipate an “accelerating pullback in build rates, as freight market conditions remain at a low ebb.”
Photo courtesy of Volvo Trucks North America