In the release of its Commercial Vehicle Dealer Digest, ACT Research reported that, as expected and aligning with preliminary data, North American Class 8 net orders were soft in May, as full 2021 backlogs and as-yet [fully] opened 2022 order books constrained activity.
The report, which combines ACT’s proprietary data analysis from a wide variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report includes a relevant but high-level forecast summary, complete with transportation insights for use by commercial vehicle dealer executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the total US trailer market, used truck sales information, and a review of the US macro economy.
“For Class 8, after a torrent of orders from October to March, orders moderated in April, before falling to a nine-month low in May,” said Kenny Vieth, ACT’s President and Senior Analyst. He continued, “The order lines on the Dashboard graph illustrate the current rollover in the trend. A drop in the order trend preceded the opening of subsequent years’ orders in each of the last two cycles, with significantly higher orders booked ahead of the second year of the cycle. Given recent historical precedent, we would expect orders to rise materially in coming months.”
Vieth elaborated, “While our expectation is that orders will jump in early Q3, we add two caveats: First, through all but the most recent cycle, OEMs have typically not opened out-year order books until September-October. Second, at a recent conference, an OEM executive indicated that his company was at least contemplating some type of allocation system to best serve all of their customer constituencies in challenging market conditions.”
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
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