Production of Class 5-8 trucks exceeded build plans in March as supply conditions slowly improve

Production of Class 5-8 trucks exceeded build plans in March as supply conditions slowly improve

Heavy- and medium-duty orders declined double digits Y/Y, according to ACT Research’s latest State of the Industry Report.

Trucking industry demand was quite healthy in March, despite the turmoil experienced in the banking sector and yet another interest rate increase, ACT Research says. Pent-up demand remains resilient, and cancellations continue at miniscule levels for both heavy-duty (HD) and medium-duty (MD). Curbing the enthusiasm somewhat, HD and MD orders declined double digits Y/Y, according to ACT Research’s latest State of the Industry: NA Classes 5-8 report.

HD-ACT-600

“As supply conditions have slowly improved, so has output. Supporting this trend, March HD and MD production each exceeded build plans,” said Eric Crawford, vice president, senior analyst, ACT Research. “The Class 8 build rate in March was 1,361 units produced, 4.2% above the industry build plan, with the industry producing 31,306 units. Classes 5-7 build averaged 1,090 units produced, 13% above build plan, with 25,065 units produced.”

Regarding backlog, Crawford stated that given the relatively weak environment for orders, combined with a healthier supply chain, the Class 8 backlog is expected to be on a downward trajectory until 2024 order boards open. The March backlog was down 12.5k units M/M to 218.3k, making it no exception to the trend.

“Coupled with March’s stronger build rate, the HD backlog-to-build ratio declined 100 basis points m/m to 7.6 months (8.1 seasonally adjusted). Of note, 122.4k units in backlog are scheduled for 2H’23, considerably below the 142.4k units scheduled for 2H’22 this time last year,” Crawford concluded.

You May Also Like

Freightliner eM2 medium-duty electric truck rolls out at ACT Expo

The battery electric truck will roll into pick-up and delivery applications with more vocational configurations on the way.

Freightliner-em2-medium-duty-electric-truck-1400

Freightliner unveiled the series production eM2 for pick-up and delivery applications, which is ready to order and will start production in fall this year at the Daimler Truck North America (DTNA) Portland truck manufacturing plant. At the same time, Freightliner has introduced an "innovation" eM2 medium-duty truck with the goal to learn from real world customer experiences in vocational applications.

Xos shows off second mobile charging solution at ACT Expo

The second generation mobile charging solution is deployable and scalable without need for permanent infrastructure.

Xos-Charging-Hub
J.B. Poindexter & Co. unveils next-gen EV, AV truck bodies at ACT Expo

JBPCO showcases next-gen EV truck bodies and digital connectivity at ACT Expo.

The Shyft Group’s Blue Arc EV delivery vans receive CARB approval

The certifications will allow Blue Arc customers in states with zero-emission truck regulations to apply for and receive incentives.

bluearc-plymouthoutdoor-042722-0140-use-with-approval-from-c-1400
Ford E-Transit Courier aims to electrify European fleets

The E-Transit Courier has been redesigned around a larger, more flexible cargo area that delivers 25% more load volume than the outgoing model, the OEM noted.

2023_FORD_E-TRANSIT_COURIER_04-1400

Other Posts

FTR: North American Class 8 net orders fell 37% M/M in April

The weak order level in April is not a major surprise, although it is happening earlier in the year than typically expected.

FTR-April-Class-8-Net-Orders
Used Class 8 truck volumes exceeded seasonal expectations in March

When compared to March 2022, the retail and wholesale markets declined by -13% and -40%, respectively.

Used-Heavy-Duty-Truck-Generic-600x300
Overall new equipment business volume down slightly Y/Y

According to ELFA findings, total headcount for equipment finance companies was down 4.6% year-over-year.

Equipment-Leasing-and-Finance-Association-monthly-index
Growth rate of parts aftermarket sales continues to gradually decelerate

CMVC’s Parts Aftermarket Sales Leading Indicator signals slowing growth in commercial vehicle parts sales.

parts-aftermarket-sales-leading-indicator