Preliminary North American Class 8 Net Orders for July at 10,600 Units
Bloomington, IN – (Trailer Technician) – FTR reports preliminary North American Class 8 net orders for July fell to their lowest level since November 2021 at 10,600 units. Order activity was the weakest for the month of July since 2019, down 33% from June and down 60% y/y. Class 8 orders have now totaled 244,000 for the past twelve months.
OEMs have essentially run out of build slots for 2022 and are not yet entering orders for 2023. The continued supply chain disruptions are limiting OEM output in 2022 and the fluctuating cost of materials and components has caused delays in confirming orders for shipment next year. Demand for new trucks remains strong.
Don Ake, vice president of commercial vehicles for FTR, commented “Orders, though paltry, met expectations since OEMs have filled almost all available build slots this year. July is typically the weakest order month of the year, so it is no surprise orders dipped to around 10,000 units. Fleets continue to shop around, looking for available trucks, but they are becoming increasingly difficult to find. The supply chain is improving very slowly, but not nearly enough to meet demand.
“It’s like when popular concert seats are sold out, you get no sales the next day. Class 8 trucks are popular and in scarce supply in 2022. The OEMs just don’t have the capacity to meet the high demand this year. OEMs could increase production by about 10% over the current rate if they could get the parts, but the supply chain remains clogged.
“Despite the economic uncertainty, demand for new trucks is expected to remain robust in 2023. Freight is still forecast to grow at a steady clip. When booking commences for 2023, possibly as early as September, Class 8 orders could reach record heights.”
Final data for July will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service. To contact FTR, email [email protected] or call (888) 988-1699 ext. 1.
About FTR
For more than 30 years, FTR has served as the industry leader in freight transportation forecasting for the shipping, trucking, rail, intermodal, equipment, and financial communities in North America. FTR’s experts, with over 250 years of combined experience in the transportation industry, provide quantitative analysis with historical and modal-specific insights. FTR’s reports, data, commentary, and insights help clients evaluate market risks, identify new opportunities, and make informed decisions.
FTR is the only company with a complete set of freight data for all modes of transportation with detail at the 3 Digit STCC commodity level. FTR tracks and forecasts 200+ unique commodity groups both quarterly and annually using their proprietary Freight•cast U.S. freight transportation model. FTR’s Transportation Conference held annually in September in Indianapolis is a unique event bringing together every aspect of the freight transportation world into one place. For more information www.FTRconference.com
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