Trailer orders were below expectations in July with a 17 percent drop month over month, according to a report from ACT Research Co. Class 8 orders dropped 7 percent month over month. The third quarter is historically the weakest order period of the year, and July is the weakest month.
July net orders of 12,739 trailers were down 17 percent month over month. “July net orders at a seasonally adjusted annual rate were a disappointing 201,000 units,” said Frank Maly, Director-CV Transportation with ACT Research. He also said supply continues to be higher than demand. Though manufacturers have adjusted their build rates, “further modification could be needed to keep the backlog to build ratio at an acceptable level,” he said.
July Class 8 orders fell to just under 17,600 units, down 7 percent month over month, but up 36 percent compared with July 2012. Medium duty orders fell 4 percent month over month to 14,970 units.
“New orders continue to come from truckers who have a genuine need for near-term deliveries,” said Kenny Vieth, ACT’s president and senior analyst. “As such, cancellation activity remained at extremely low levels again in July,” he added.