Class 8 Truck Orders in 2017 continue to outshine last year’s sales figures (FTR Transportation Intelligence)
Raking in an unusually stronger year, the orders for class 8 trucks have kept themselves ahead of last year’s sales figures, despite a minor scare in June.
After coming through resoundingly well in the first five months of the year before taking a sharp dip in May, the orders bounced back in June, making 2017 better than 2016 in a month to month sales figure comparisons.
17,600 orders for class 8 trucks were recorded in June 2017 bettering the figures from June 2016 by almost 38%.
The improvement shows, not just a strong market for the remainder of 2017, but also inspires optimism for a similarly strong year in 2018.
According to recent figures released by ACT research, 127,000 orders have been placed so far in 2017, compared to a paltry 94,000 orders for a similar time range recorded for 2016.
Dismal performance & weak sales had been the norm in the industry till last year, but this year has been different and not just in the class 8 category but also in the overall general trucking industry. Orders for Segments 5-7 have also shown a 28% improvement over last year’s sales figures, standing at an impressive 126,550 orders through June 2017.
Industry experts say that orders show there is expected freight demand right around the corner so it’s not just manufacturers that are raking in revenue, but fleet sales managers are also looking ahead with confidence as they optimistically work towards better sales figures.
The main problem last year was a lower freight demand which drove the sales figures for truck orders downward. The total generated value of $704.3 billion in 2015 slipped 4 % to $676.2 billion in 2016, according to The American Trucking Association. This caused carriers to push back their orders resulting in a trickle-down effect of lower confidence prevailing throughout the associated industries.
A dip in May has been shrugged off for now as sales figures have been above average for most of the year and even a minor dip like the one witnessed in May will not dampen the spirits of the industry. Lower numbers are certainly expected in May as Trucking orders follow seasonal trends, and as the report by FTR shows, most orders are meant for delivery in the 4th quarter, the figures will not take a big hit anytime soon.