Trucking News Online

November Class 5-7 Truck Market Growing as Class 8 Weakens

December 18, 2015 By: Trucking News Staff Tags: Fleet Management, News

ACT Research Co. reported Thursday that Class 8 trucks ordered by fleets and owners in November totaled 16,770, while Classes 5 through 7 posted 18,850 net orders.

Kenny Vieth, ACT’s president and senior analyst, noted that lingering weakness in the industrial economy coupled with strong capacity additions in 2015 have tilted the supply-demand equilibrium, driving broad-based weakness across markets in November and pushing Class 8 net orders to a volume last seen in the third quarter of 2012.

“In November, North American net orders were 16,772 units, which translates to 15,200 units on a seasonally-adjusted basis,” Starks said. “This is sharply below the prevailing seasonally adjusted order trend of 23,000 units per month that was in place from April to October.”

Vieth added, “Despite the weakness that has gathered into year’s end, we expect that the industry will build more than 320,000 units in 2015. And while backlogs will be smaller at the end of 2015 versus 2014, that backlog is expected to be the third largest year-ending backlog in a decade.”

Concerning medium-duty trucks, Vieth said, “Healthy consumer balance sheets, rising new home construction, improved state and local government budgets, and an absence of overbuying have the medium-duty segment well positioned for continued modest growth in 2016. Collectively the Classes 5-7 market experienced another healthy month, with orders up 7 percent year over year. Classes 6-7 vehicles — up 10 percent year over year — were responsible for the lion’s share of November’s medium-duty truck market gains.”