FTR reports preliminary North American Class 8 Net orders stayed steady in January at 21,400 units

FTR reports preliminary North American Class 8 net orders stayed steady in January at 21,400 units.  The January total was down 8% m/m and 50% y/y. Class 8 orders have totaled 343,000 units over the last twelve months.

January orders continued to track in a restricted range with the total for the month equaling the average of the last four months.  OEMs continue to match order rates to build rates as they manage backlogs monthly.  OEMs are not entering all their 2022 commitments because they do not want to overbook due to the uncertain supply chain. 

Don Ake, vice president of commercial vehicles for FTR commented, “January orders met expectations. As a group, the OEMs are entering orders at the same rate as production. Backlogs have tracked in a narrow range for the last ten months, which is odd in this cyclical industry. Normally, this would indicate a very stable market. In this case, it reflects a market frozen by a weak supply chain.

“There is still tremendous demand for new trucks. The order totals for the last twelve months, at 343,000 units, would equate to a robust production year. The orders are there but the OEMs continue to be limited in what they can produce due to shortages of semiconductors and other components.

“The big negative to the January order volume is that it indicates the supply chain has not improved yet from the end of last year. OEMs are not confident they can get parts, so they limit the number of orders they enter. Order totals will rise as soon as supply chain conditions improve.”