FTR reports preliminary North American Class 8 net orders for August at 13,400 units

FTR reported that Class 8 preliminary net orders in August totaled 13,400 units, up 2% month-over-month (m/m) but down 16% year-over-year (y/y). Class 8 orders for the past 12 months have now totaled 271,000 units.

August orders came in below seasonal expectations as the average m/m increase from July to August has been around 20% over the past seven years. The combination of a stagnant truck freight market and full or nearly full 2024 order boards presumably are the main factors behind a smaller than typical increase. Based on performance for the year to date (YTD), orders are running slightly below replacement demand levels at an average of 18,735 net orders per month. The typically slower order period from April through August has averaged 14,885 orders per month. Despite three consecutive months of lower y/y orders, strong early-year performance has kept 2024 YTD net orders up 14% y/y.

Dan Moyer, senior analyst, commercial vehicles, commented, “OEMs this month faced a somewhat mixed market, though overall conditions were stable. The conventional market outperformed the vocational sector, driving most of the m/m improvement. Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at a slower pace. We expect further reductions in backlogs once the final Class 8 market data is released later this month and continued growth in already record-high inventory levels. Pressure on OEMs to reduce production rates is mounting.”

Preliminary orders may be estimated and are subject to revision when FTR releases final data mid-month as part of its North American Commercial Truck & Trailer Outlook service.