Sunday, June 12, 2011

More on Strong Big-Truck Sales in May

As a follow-up to this recent CD post on strong big-truck sales in May, Indiana-based Americas Commercial Transportation (ACT) Research (a leading publisher of new and used commercial vehicle industry data, market analysis, and forecasting services for the North American market) is also reporting that orders for heavy-duty commercial vehicles remained strong in May.  Orders for Class 8 vehicles increased by 85% from the same month last year, and were above the 24,000 unit level for the seventh straight month, a "clear sign of elevated demand." 

From the ACT press release:

“May represents the seventh consecutive month of orders above the 24,000 unit level, a clear sign of elevated Class 8 demand. Though May had the lowest order intake of the last three months, orders were booked in excess of a 365,000 unit annualized rate from March to May. Industry backlogs, which stood at just over 125,000 units at the end of April, likely rose as May orders outpaced OEM planned production for the month.  

Said Steve Tam, vice president of the commercial vehicle sector, “So far, trucks have yet to show any reaction to the recent rash of disappointing economic news. Their freight remains strong, exceeding hauling capacity at this time. Carriers are thinking about their future prospects when making significant capital expenditures on new equipment. If they only reacted to today’s news, they would be paralyzed into inaction.”

HT: Gary Lyle

5 Comments:

At 6/12/2011 7:51 PM, Blogger Rufus II said...

As our esteemed Vice President might say, "Bless their hearts;"

but, according to the EIA Distillate (Diesel) Demand is Down 4.9% from the same 4 week period 1 yr. ago.

 
At 6/12/2011 8:47 PM, Blogger juandos said...

"but, according to the EIA Distillate (Diesel) Demand is Down 4.9% from the same 4 week period 1 yr. ago"...

Well that might possibly have something to do with the use of more lightweight metals being used in the newer vehicles...

Also new engine technologies might contribute to using less diesel...

 
At 6/12/2011 9:01 PM, Blogger Rufus II said...

Maybe, to some extent, Juandos. But, only a few months ago we were using 5% MORE Diesel than the prior year. Now, 5% Less. That's too big a drop-off for some very marginal fuel-savings to account for. Esp, since you would be looking at only 2 or 3% of the fleet.

Some very small effect there, but nothing like what we're looking at.

 
At 6/12/2011 9:05 PM, Blogger Rufus II said...

I know I'm getting "out on a limb," here, because the Federal Reserve is adamant that Growth will be Good (in the 3% range) in the second half of the year.

They have a lot of access to data, and brain power, but, I'll be danged if I don't wish they'd share some of it.

All I see is an economy that's dead in the water.

 
At 6/18/2011 9:32 AM, Blogger VangelV said...

Well that might possibly have something to do with the use of more lightweight metals being used in the newer vehicles...

No, it does not. The fleet has not turned over. Most vehicles are still older. Demand is down because real economic activity in the US is contracting.

 

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