Rising costs and an inability to deliver Class 8 trucks resulted in orders falling below 20,000 for the first time in 2021. Although fleet and owner-operators appear to have lost confidence in heavy-duty truck makers, trailer manufacturers enjoyed something of a rebound.
According to ACT Research, preliminary estimates peg November truck orders just north of 9,800. That figure puts truck orders down by approximately 41 percent from the previous month and a whopping 82 percent shortfall year-over-year.
“Long backlog lead times resulting from ongoing supply-side constraints continue to pressure new order activity,” ACT Research president Kenny Vieth reportedly said. “With backlogs stretching into late 2022 and still no clear visibility about the easing of the ‘everything’ shortage, modest November order results suggest the OEMs (original equipment manufacturer) are continuing to take a more cautious approach to booking orders so as not to extend the cycle of customer expectations management.”
To some degree, truck manufacturers are trying to put their best foot forward by indicating they are effectively sold. The narrative doesn’t necessarily sync with orders tanking to the lowest November tally since about 1995.
“November certainly wasn’t a happy number but is understandable and explainable. One of the most frequent questions we field today is, ‘the truck makers say they are sold out. Is that true?’ The answer is, that depends,” ACT vice president Steve Tam said. “They are sold out for the current level of production they are planning next year. But that is not necessarily a static number.”
Manufacturers have struggled mightily to secure semiconductors and other components necessary for Class 8 truck completion. Passenger vehicle and light-truck manufacturers have also suffered through the supply chain setbacks. Reports indicate some automakers have parking lots flush with vehicles waiting for final components and other companies implementing furloughs until parts arrive.
On a positive note, trailer manufacturers appear to be seeing the light at the end of the tunnel. According to an FTR Transportation Intelligence report, November orders rebounded to 32,000 units. That represents an 89 percent month-over-month gain. Although hovering about 23 percent below the same period in 2020, the increase was the most promising turnaround of 2021.
“This is great news for the trailer market. Fleets are signaling they will need considerably more trailers in 2022 to handle the freight growth and relieve some of the pressures in industry capacity and the spot markets,” FTR vice president Don Ake reportedly stated. “It also indicates the OEMs are beginning to look forward beyond Q1 and expect to be able to lift build rates at some point. Orders have been under the 30,000-unit mark for nine months, so this is an impressive number in that regard.”
Industry insiders indicate the uptick stems from large fleet orders and renewed manufacturing confidence. Freight carriers appear to be betting that truck transportation growth will continue in 2022, even if supply change disruptions persist.
Sources: ccjdigital.com, ttnews.com
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