FTR reports preliminary North American Class 8 orders for January at 17,700 units, following a consistent trend over the last four months, when orders averaged 19,000 trucks.
The January total, down 10% month-over-month but up 12% year-over-year, suggests fleets are ordering only the equipment they are sure they need in the short term. FTR expects Class 8 orders to remain in this narrow range through the first quarter of the year. Class 8 orders for the past 12 months now total 181,000 units.
“The Class 8 market remains in equilibrium with orders well-matched to production, stuck at close to replacement demand levels,” said Don Ake, vice president of commercial vehicles. “Fleets remain profitable and are continuing to replace older units according to planned cycles. The smaller fleets are being more cautious because revenue is declining from the previous years.
“The freight market is still sluggish, but it has plateaued at a high level. The market is pausing to take a breather after a couple of banner years and the equipment market is stagnant as a result. Even though the trade deals have reduced the amount of economic uncertainty, the upcoming election is restricting business investment both inside and outside the industry.”
Final data for January 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.