Net orders for North American Class 8 trucks in April dropped 16 percent from March and 39 percent compared with April 2015, according to preliminary data from freight forecaster FTR Transportation Intelligence.
Net orders for North American Class 8 trucks totaled 13,500 units in April, a 16 percent decline from the prior month and a 39 percent drop from April 2015, according to preliminary data from the freight forecaster FTR Transportation Intelligence.
FTR noted order activity was generally weak and said it expects ordering to “remain soft during the traditional summer slow order season.”
Orders have come in at a “paltry” annualized rate of 190,000 units over the past three-month period and 237,000 units over the past 12 months.
“Class 8 orders were once again below expectations with the downshift in order activity continuing,” FTR Vice President of Commercial Vehicles Don Ake said of the figures. “It looked like the market was going to stabilize, but this order volume is surprisingly low.
“Fleets have right-sized for the current freight volumes and do not need additional units. They are being very cautious to not over-extend, until business improves some. Inventories remain bloated.
“The OEMs will not be able to maintain current build rates under these order conditions,” he added. “It appears more production cuts are on the way, consistent with the FTR forecast. Backlogs are quickly shrinking and are expected to fall below 2014 levels relatively soon. A big order month could stop the bleeding, but we are entering the ‘summer slump’ so order activity will probably get worse before it gets better.”
FTR: Class 8 orders fall for fourth straight month
