2022-04-14
Category:
Industry news
Author:
Rob

Class 8 orders remained flat in February. The orders for the month stood at twenty-one thousand. However, the same does not match the figures for the same period last year. The orders for the previous year were almost double this year's figures. The amount of backlog at hand determines if demand is high or low. However, the entire thing depends on how the supply chain pans out. The demand, supply, and production must all be in line.

As per the Transport Topics, these orders will be built within 12 months. The new orders are not as important as the existing backlog. With the current situation in Ukraine, the forecast orders are quite low. ACT Vice President Steve Tam said they were keen and knew there would be an impact. The only challenge is knowing exactly how much the impact would be. Both the class 8 production and sales forecast are quite lower.

Tam stated that there still is some optimism as far as the supply chain is concerned. However, Don Ake, vice president of commercial vehicles for FTR, said that the stable rate of orders is not good news for future production. Fewer orders mean that the supply chain remains underwhelming, which is not good for the manufacturers. He added that the piled-up unfulfilled demand is big. The piled-up demand ranges between 85,000 to 95,000 trucks that could have been sold in the past nine months had the supply chain been okay.

Ake was optimistic that things would be better in July. He was also realistic to point out there aren't any positive signs yet. Daryl Bear said that he had talked with a certain fleet about the use of fuel-saving vehicles. Most fleets must now change their orders to meet their new demands. It would be easier to do so than for someone who wants to order a new one. Bear pointed out that everyone would get just a little of what they want since the truck makers will make all the decisions. The new trucks will save on fuel hence more profits.

Class 8 Orders Remain Flat

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