June truck orders jump 41 percent
North American Class 8 truck net orders jumped a whopping 41 percent year-over-year in June according to FTR.
The 26,255 units ordered last month represented the best June numbers since 2005. Class 8 orders have now had 17 consecutive months with year-over-year increases. OEMs continue to increase build rates in response to solid demand for Class 8 trucks with June order activity putting additional pressure on supply.
“June’s numbers are significant, especially considering that order activity typically slows when summer starts,” Don Ake, FTR Vice President of Commercial Vehicles, says. “It wouldn’t have been surprising to see Class 8 orders under 20,000 units for June, so a 26,000 level is outstanding. FTR has been forecasting a very robust second half of the year and the positive June numbers confirm our outlook.”
Class 8 orders for the latest six month period through June annualize to 333,000 units.
While June orders for new trucks made yet another splash, volumes of used trucks the month before slid.
The volume of used Class 8 trucks sold in May dropped 12 percent below April’s volume, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.
“The volume drop was expected, since sales usually slow during the summer months,” says Steve Tam, Vice President-Commercial Vehicle Sector with ACT.
Tam said that even though fleets and dealers alike are now beginning to talk about fleet expansion, they are not necessarily trading in the same number of trucks that they are buying.
“The result is potential perpetuation of a lack of desirable inventory in the used truck market,” Tam says. “However, the units that are making their way into used truck inventory tend to be younger and have lower mileage than the industry has seen in a while.”