2014 may be best of truck buy cycle
For the second month in a row, Class 8 orders were surprisingly high in July, with net orders of 30,103.
Classes 5-7 net orders also posted a gain in July, coming in at 15,834 units according to the latest State of the Industry report, recently released by ACT Research Co. (ACT). The report covers Classes 5 through 8 vehicles for the North American market.
“While one strong month may be statistical noise or an outlier, the July orders fit into a robust pattern that has held up since the start of the year,” Jim Meil, ACT’s Principal, Industry Analysis, says of Class 8 orders. “With year-to-date orders up 33 percent from the comparable 2013 span, 2014 is almost certain to be the best year of this cycle.”
Meil said that Class 8 backlogs were the highest since January 2012, but “we believe we are not yet at the point where an overheated market triggers duplicate ordering and raises anxieties about backlog integrity.”
Meil added that Classes 5-7 year-to-date orders are running about 10.5 percent higher than the prior year at this time.
“While the numbers may not be as stellar as what we see in Class 8, the year is shaping up to be the best thus far of the post 2009 expansion for medium duty,” he says.
Class 8 orders have now had 18 consecutive months with year-over-year increases, and for the latest six-month period through July annualize to 325,000 units.