Both ACT Research and FTR reported preliminary commercial vehicle order numbers. ACT had preliminary North American Class 8 net orders in May at 6,700 units, up 56% from April, but down 38% from a very easy year-ago comparison. FTR had a similar count with preliminary Class 8 net orders for May at 6,600 units.
“Reflecting the state of the broader economy, there was little to cheer about in May’s industry order activity,” said Kenny Vieth, ACT’s President and Senior Analyst. “Considering COVID-related lock downs across the US and North America at the start of the month, and a slow reopening occurring through May in most areas, it was not an exercise building customer confidence.
“Restarting the manufacturing sector from a full stop was only partly successful, as Mexico’s lock downs remained in effect well after the US began to reopen, resulting in challenging supply-chain dynamics and fragmented supplier sourcing.”
FTR noted that fleets remain reluctant to order trucks, as states extended restrictions due to COVID-19, creating additional economic turmoil. Orders are expected to continue to increase modestly, as economic activity resumes after many of the constraints are lifted. Freight volumes have picked up some after bottoming out in Mid-April. The recovery is expected to be slow and uneven. It has not started quite yet based on the weak Class 8 orders in May; June should be a better indicator, as more economic activity resumes, the company stated.
Don Ake, vice president commercial vehicles, commented, “Most of the country still had some severe restraints in place for part of May. It is difficult for fleets to plan for future equipment needs under these highly abnormal conditions. Carriers are more worried about what’s happening today, about their manpower needs and short-term issues, than ordering trucks. The concern about the pandemic goes beyond just the business and economic anxieties and greatly diminishes fleet confidence.
“The economy has entered the restart phase and May was the transition month to get us from shutdown to renewal. Expect Class 8 orders to rise gradually, as caution wanes and fleet buyers begin to focus on the second half of the year and equipment requirements.”
