Class 8 orders plummet, but market remains ‘strong’: FTR

Class 8 truck orders plummeted to 34,300 units in November, according to preliminary data from industry forecaster FTR, well off the 56,000 ordered in September. However, while orders have slid the past two months, FTR says they are showing "tremendous gains" over last year's weak totals. November orders were down 20% from October, but up 254% year over year, FTR reported.

"Much of the year appears to have been slotted for production in 2023," said Jonathan Starks, FTR's chief executive officer and chief intelligence officer. "That means further moderation of levels as we get into the new year.

The market remains strong despite the economic uncertainties, and production still will be limited to some extent by supply chains and labor." ACT Research, meanwhile, reported Class 8 net orders in November were 33,000 units, while NA Classes 5-7 net orders were 21,400 units. "OEMs having opened their order boards for 2023 more broadly, and ongoing pent-up demand - with tailwinds from strong carrier profitability and elevated fleet age - is proving resilient," said Eric Crawford, ACT's vice-president and senior analyst.

"We continue to expect a freight recession, and an eventual economic recession (mild to medium in magnitude), but OEMs at this point have clear visibility to a strong first half of 2023 (barring any unforeseen cataclysmic events)."

About medium-duty orders, he added, "demand was solid, albeit against somewhat challenging comparables.

Over the past 12 months, the MD market has seen 232,700 orders booked."