Executive Briefings

Commercial Trailer Net Orders Improved in September

After recent lackluster performance, trailer order activity posted solid improvement in September. Net orders were up almost 31% month-over month and 22% year-over-year. Supported by solid production and inventory reduction, total trailer factory shipments were up nearly 65% year over year in September.

"Production is still outpacing new order intake, despite the improvement in orders in September," said Frank Maly, director of CV Transportation Analysis and Research with ACT Research. "This is reducing the backlog. However, we cannot divorce ourselves from seasonality: orders are always weak and backlogs always fall through the third quarter. On a seasonally adjusted basis, total trailer backlogs have been virtually unchanged since May," he added.

In other developments, reported volumes of used Classes 3-8 truck sales recovered in September after an extended summer slump. Volumes were mixed on a channel by channel basis, falling in the retail market, but gaining ground in the auction and wholesale markets.

"The majority of this month's sequential improvement can be attributed to a very solid month in the auction segment," said Steve Tam, vice president, commercial vehicle sector, with ACT. "The average selling price for total used Classes 3-8 fell month over month. Average age continues to be the most consistent, least volatile of all the metrics measured," he added. "Both age and mileage numbers are expected to increase throughout 2011."

The report from ACT provides data on the average used price for the top-selling Class 8 model for each of the major truck OEMs - Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).

Source: ACT Research

After recent lackluster performance, trailer order activity posted solid improvement in September. Net orders were up almost 31% month-over month and 22% year-over-year. Supported by solid production and inventory reduction, total trailer factory shipments were up nearly 65% year over year in September.

"Production is still outpacing new order intake, despite the improvement in orders in September," said Frank Maly, director of CV Transportation Analysis and Research with ACT Research. "This is reducing the backlog. However, we cannot divorce ourselves from seasonality: orders are always weak and backlogs always fall through the third quarter. On a seasonally adjusted basis, total trailer backlogs have been virtually unchanged since May," he added.

In other developments, reported volumes of used Classes 3-8 truck sales recovered in September after an extended summer slump. Volumes were mixed on a channel by channel basis, falling in the retail market, but gaining ground in the auction and wholesale markets.

"The majority of this month's sequential improvement can be attributed to a very solid month in the auction segment," said Steve Tam, vice president, commercial vehicle sector, with ACT. "The average selling price for total used Classes 3-8 fell month over month. Average age continues to be the most consistent, least volatile of all the metrics measured," he added. "Both age and mileage numbers are expected to increase throughout 2011."

The report from ACT provides data on the average used price for the top-selling Class 8 model for each of the major truck OEMs - Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).

Source: ACT Research