Class 8 orders were flat in July at 25,800 units, according to preliminary data from ACT Research, but medium-duty orders jumped 30%.
The 30,200 Classes 5-7 orders were up 70% year-over-year, ACT reported.
“In 2018, there was an explosion of orders across the industry, as dealers raced to get their places in rapidly growing out-year backlog queues. Underlying drivers of commercial vehicle demand are considerably hotter than they were three summers back, with 6%+ GDP growth, capacity constraints across multiple shipping modes, at/near-record trucking freight rates, surging carrier profits and record used equipment valuations providing deep support for Class 8 demand,” said Kenny Vieth, ACT’s president and senior analyst.
“While conditions are in place to sell-out 2022 backlogs in a very short time horizon, the industry appears to be approaching order distribution much differently this year. That being said, while order rates remain below the backlog-filling volumes of Q4 and Q1, the three- and six-month seasonally-adjusted annualized rates remain well above the industry’s ability to produce.”
Regarding the medium-duty market, Vieth commented, “With the consumer economy remaining buoyant, July’s Classes 5-7 net orders accelerated on both an actual and seasonally adjusted basis. July’s medium-duty net orders fell just short of a top-five all-time finish, coming in at a respectable sixth best ever.”