{"id":2292,"date":"2017-11-03T16:30:43","date_gmt":"2017-11-03T16:30:43","guid":{"rendered":"https:\/\/cantruck.ca\/na-class-8-orders-surge\/"},"modified":"2025-01-10T16:48:55","modified_gmt":"2025-01-10T16:48:55","slug":"na-class-8-orders-surge","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/na-class-8-orders-surge\/","title":{"rendered":"NA Class 8 Orders Surge"},"content":{"rendered":"

New class 8 truck orders defied expectations and \u201cconfirms confidence\u201d in 2018 as a \u201cstrong rebound year\u201d for North American heavy-duty truck production, reports Fleet Owner.<\/p>\n

Class 8 orders in October exceeded analyst expectations by a wide margin and indicates that, as long as freight volume and the broader U.S. economy hold up, conditions are setting up for strong heavy-duty truck production volumes through the end of the decade.<\/p>\n

According to data track by consulting firm ACT Research<\/a>, North American Class 8 net orders \u201csignificantly surpassed expectations,\u201d reaching 36,200 units, which is 60% higher compared to September and 160% higher compared to October of 2016.<\/p>\n

Research firm FTR Transportation Intelligence<\/a> reported similar numbers, with its data indicating preliminary North American Class 8 net orders hit the 35,700 unit mark, which is a month-over-month increase of 62% versus September and a year-over-year increase of 167% compared to October of last year.<\/p>\n

While growth in orders \u201cwas not uniform\u201d across all the major truck OEMs, Jonathan Starks, FTR\u2019s COO, said that nearly every manufacturer witnessed a month-over-month increase. According to his firm\u2019s data, North American Class 8 orders for the past twelve months now total 261,500 units, with the market seemingly \u201cwell situated\u201d for a strong production environment to persist into 2018.<\/p>\n

\u201cOctober\u2019s preliminary orders clearly put upward pressure on our expectations for Class 8 demand next year,\u201d added Kenny Vieth, ACT\u2019s president and senior analyst. \u201cAt the same time, we recognize the potential that this year\u2019s NACV [North American Commercial Vehicle] show<\/a> in September may have pulled-forward the timing of orders that would normally have been placed through the fourth quarter.\u201d<\/p>\n

Michael Baudendistel, vice president of\u00a0the transportation & logistics research group at Stifel Capital Markets<\/a>, added in a research brief that \u201cthere has been plenty of optimism heading into order season,\u201d with fleets \u201cincreasingly upbeat\u201d given ongoing improvements in freight volumes and a \u201csurging spot market,\u201d though spot rates have softened slightly over the last three weeks, according to DAT Solutions<\/a>.<\/p>\n

Baudendistel also believes the 36,000-plus Class 8 orders in October \u201cwere stronger than most expected\u201d and sends a \u201cgood signal\u201d that the outlook for 2018 and beyond \u201chave not been too optimistic.\u201d<\/p>\n

While 2018 looks good, \u201cwe believe the 2019-2020 outlook is even better,\u201d he added.<\/p>\n

\u201cWhile we are still many months away from having more clarity on what production will look like in 2019 and 2020, we believe conditions are setting up for a strong end to the decade\u2014as long as freight volume and the broader economy hold up,\u201d Baudendistel said.<\/p>\n

From Stifel\u2019s point of view, three main factors support that bullish outlook for strong heavy-duty truck production volumes:<\/p>\n