August preliminary North America Class 8 net orders of 13.2k units declined 19% y/y. Complete industry data for August, including final order numbers, will be published by ACT Research in mid-September.
“A beleaguered for-hire market continues to weigh on Class 8 orders. With elevated uncertainty, particularly around equipment costs, and soft activity in housing and broad freight demand outside of pre-tariff activity, this environment may persist,” shared Tim Denoyer, VP & Senior analyst at ACT Research. He continued, “Fleet margin pressure has not abated, with contract rates hardly budging and cost pressures ongoing. Vocational demand has taken its knocks as well this year on a combination of regulatory uncertainty, tariffs, and elevated interest rates, though data centers remain an area of strong activity.”
Regarding the medium duty market, Steve Tam, VP & Analyst at ACT Research, added, “Preliminary Classes 5-7 orders improved from July, rising 1,250 units m/m to 14,400 units in August. While up 9.5% m/m, MD net orders fell 25% y/y. Historically, August is the beginning of stronger orders for Classes 5-7 vehicles as school bus order season gets underway.”
State of the Industry: NA Classes 5-8 Report Overview
ACT’s State of the Industry: NA Classes 5-8 report provides a monthly look at the current production, sales, and general state of the on-road heavy and medium duty commercial vehicle markets in North America. It differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing measures such as backlog, build, inventory, new orders, cancellations, net orders, and retail sales. Additionally, Class 5 and Classes 6-7 are segmented by trucks, buses, RVs, and step van configurations, while Class 8 is segmented by trucks and tractors with and without sleeper cabs. This report includes a six-month industry build plan, backlog timing analysis, historical data from 1996 to the present in spreadsheet format, and a ready-to-use graph package. A first-look at preliminary net orders is also published in conjunction with this report.
ACT Research Overview
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
Additional Resources
Final North American Class 8 net orders totaled 13,172 units in July, down 2.1% y/y, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report.
“July marks the seventh consecutive month of y/y Class 8 order declines,” according to Carter Vieth, Research Analyst at ACT Research. “Tractor orders increased 6.6% y/y to 8,314 units, but considering July is the weakest month for orders, delayed planning due to tariffs seems responsible for the modest bump in July tractor orders as weak fundamentals remain in place.”
“Vocational orders totaled 4,858 units, down 14% y/y. Vocational orders continue to flounder on a troika of headwinds: 1) EPA’27 low-NOx rules are now highly uncertain, with most fleets now thinking a complete repeal is the way forward, removing the need for prebuying; 2) Slowdown in housing, manufacturing and private construction, plus continued elevated financing costs are weakening demand in key vocational sectors; 3) Tariff-related equipment costs/uncertainty are keeping fleets on the sidelines for longer,” he continued.
Regarding medium duty, Vieth added, “Total Classes 5-7 orders fell 16% y/y to 13,159 units. MD orders have slowed notably across the past seven months, with still elevated inventories, and a weaker economic outlook. Slowing services momentum is a particular concern for MD demand.”
Class 8:
Net Orders: 13.2k, -2.1% y/y
Classes 5-7:
Net Orders: 13.2k, -16% y/y
Click here to learn more information about ACT's State of the Industry: NA Classes 5-8 Vehicles data.
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