FTR: Class 8 orders ‘steady’ in February

Net orders for North American Class 8 trucks in February dipped 2 percent from January, but were still down 43 percent from February 2015, according to preliminary data from freight forecaster FTR Transportation Intelligence.    Net orders for North American Class 8 trucks totaled 17,650 units in February, a 2 percent decline from the prior month and a 43 percent drop from February 2015, according to preliminary data from the freight forecaster FTR Transportation Intelligence. 
   FTR noted order activity, which it had described previously as highly volatile, is now “falling into a much more stable pattern.”
   Orders have averaged 21,000 units the last three months, as well as over the last 12 months. At 254,000 units, total orders over the last 12 months have nearly reached FTR’s build forecast for the 2016 year.
   “The order patterns are very consistent with the current market situation,” FTR Vice President of Commercial Vehicles Don Ake said of the figures. “Fleets are basically finished expanding their truck capacity for this cycle. Purchases are now for replacement demand and the average orders and expected build are right at this level.”
   Ake said he expects orders to remain relatively steady – in the 18,000-20,000 unit range – over the next several months.
   “OEMs have made significant production cuts and look to now be right-sized for the order demand,” he added. “As long as there is some freight growth, the market should be stable for the next several months. Despite recent downturn in Class 8 demand, February backlogs are still expected to be 14% higher than two years ago.”