FTR: October Class 8 truck orders fall short

Net orders for Class 8 trucks were up 30 percent from September, but still failed to meet analyst expectations, according to preliminary data from freight forecaster FTR Transportation Intelligence.    Net orders for North American Class 8 trucks in October grew 30 percent to 25,000 units compared to September, according to preliminary data from the freight forecaster FTR Transportation Intelligence.
   Despite the month-over-month increase, however, Class 8 truck orders still fell well short of analyst expectations.
   “As fleets finalize their equipment budgets for the coming year, October orders typically rise considerably,” said FTR, something that hasn’t happened this year. Although October orders reach their highest level since February 2015, they were down a substantial 45 percent compared with October of 2014.
   FTR said orders for the last 12 months are still “impressive” at 324,000 units.
   “The fall order season has gotten off to a mediocre start this year,” said Don Ake, FTR’s vice president of commercial vehicles. “Orders were not that great, but they weren’t terrible either. It is not time to panic just yet.
   “Fleets are being more cautious this year in their ordering, which is to be expected considering the weak GDP numbers and slower manufacturing growth. If November and December orders are in the same range, then 2016 production should meet expectations,” he added. “Overall, backlog remains strong helping to keep the market propped up. On the other hand, there was an uneven distribution of these orders among the OEM’s, which unfortunately could result in upcoming production cuts at some plants being more than expected.”