Class 8 Truck Orders Stumble Again in July
Published: August 10, 2024
In July, North American Class 8 truck orders declined for the second consecutive month, dropping 13% year-over-year to 13,400 units, and 8% from the previous month. Despite this decline, historical data indicates that July tends to be the weakest month for orders, and when adjusted for seasonal factors, the order numbers appear more favorable. Kenny Vieth from ACT Research noted that seasonal adjustments raise the intake to 17,500 units, indicating a smaller decline than initially perceived.
Vieth also pointed to persistent challenges facing the commercial vehicle industry, suggesting conditions may have worsened slightly at the start of the second half of the year. The inventory levels in both medium- and heavy-duty markets are at record highs, prompting fleets to moderate their investment in new equipment even as demand remains strong for straight trucks. Jonathan Randall from Mack Trucks clarified that while tractor orders are cooling due to a weak freight market, straight truck demand remains robust.
FTR Transportation Intelligence reported a slightly different figure, with net orders for July at 12,400 units, down 6% month-over-month and 7% year-over-year, reflecting a market that is not fully aligned with seasonal expectations. Dan Moyer from FTR highlighted that even in stagnant freight markets, fleets continue to invest in new vehicles, albeit at a slower pace.
Overall, the current transportation climate indicates a mix of cautious optimism and ongoing challenges, underscored by the pressures on manufacturers to adjust production rates in light of strong inventories. From an expert perspective, while the short-term outlook may be shaky, the readiness of fleets to invest in new equipment reflects a long-term belief in economic recovery and an evolving market landscape that increasingly relies on efficiency and technology advancements. As demand patterns shift, it will be crucial for manufacturers and fleets to adapt quickly to maintain competitiveness.