Truck market ‘healthy and growing’ as orders swell

[kscarbel2]

Jason Cannon, Commercial Carrier Journal (CCJ)  /  October 3, 2017

North American Class 8 net orders for September hit 22,100 units according to preliminary data released this week by FTR, a month-over-month increase of 7 percent and 62 percent above a year ago.

“With a generous factor bestowed on what is typically the second weakest order month of the year, seasonal adjustment boosts September’s order performance to its highest level in over two years at 26,200 units,” said another market analyst.

North American Class 8 orders for the past 12 months have totaled 239,000 units, a sign of a recovering heavy truck market that has strengthened over the summer and is expected to climb higher as the year comes to a close.

“Order totals never got that low and followed cyclical trends,” says Don Ake, vice president of commercial vehicles at FTR. “This is a healthy, growing truck market, which is in excellent position for greater expansion in 2018.”

Ake says strong freight growth generated by a more robust U.S. economy will spur demand for additional trucks next year.

“Factor in the loss of productivity from the ELDs,” he says, “and fleets will have to expand capacity to haul the available freight.”

[kscarbel2]

Class 8 Orders Increase in Healthy, Growing Market

Heavy Duty Trucking (HDT)  /  October 3, 2017

Early numbers indicate a positive month for September’s North American Class 8 truck orders as the market continues to gain momentum heading into the fall order season, according to preliminary reports from market analysts.

Order volume for September met FTR’s expectations, hitting 22,100 units for the month – an increase of 7% from August and 62% better than Sept. 2017. Orders from Canada were particularly strong, benefiting from a strong economy.

Other analysts expects Class 8 orders to hit 22,600 units by their own projections, which represents the fourth straight month of order improvement since a dip in orders in May.

“The recovery in the Class 8 market is building, and we saw that with the orders through the summer,” said Don Ake, vice president of commercial vehicles at FTR. “Order totals never got that low and followed cyclical trends.  This is a healthy, growing truck market, which is in excellent position for greater expansion in 2018.  Class 8 order rates are expected to jump in Q4.”

“Stronger freight growth generated by a more vibrant U.S. economy will spur demand for additional trucks next year,” said Ake. “Factor in the loss of productivity from the ELDs, and fleets will have to expand capacity to haul the available freight.”

Other analysts also released preliminary Class 5-7 medium-duty numbers, totaling 20,900 units for the month, hitting a three-month high. Combined medium- and heavy-duty order numbers are expected to hit a 27-month high when seasonally adjusted.

“September orders were positive month over month, improving 11% from August, and eked out a small 2.1% gain year over year,” they said. “Seasonal adjustment generates a drag on MD orders in September, reducing the month’s volume by 600 units to 20,300 units.”

[DailyDiesel]

So ELD's are creating demand for trucks which in turn should create a demand for more drivers, of which the trucking industry has a severe shortage of at this moment.

[kscarbel2]

Class 8 Orders Climb for Fourth Consecutive Month, Top 22,000

Transport Topics  /  October 5, 2017

Orders for Class 8 trucks soared over a weak year-ago period to increase 63% and reach more than 22,000 in September, analysts said. Order volumes have increased consecutively in each of the last four months.

Orders hit 22,600, compared with 13,880 in the 2016 period, citing preliminary data the company would revise when final details are available from truck makers.

Analysts characterized the August total as “a meaningful jump” when seasonally adjusted.

“With a generous factor bestowed on what is typically the second weakest order month of the year, seasonal adjustment boosts September’s order performance to its highest level in over two years at 26,200 units,” one analyst said.

Another research company, FTR, pegged preliminary orders at 22,100.

Orders from Canada were particularly robust as fleets are benefiting from a strong economy, according to FTR. North American Class 8 orders for the past 12 months have totaled 239,000 units.

“This is a healthy, growing truck market, which is in excellent position for greater expansion in 2018. Class 8 order rates are expected to jump in Q4,” said Don Ake, vice president of commercial vehicles at FTR.