Monthly boost, but truck orders still ‘dismal’ y-y

NASHVILLE, Ind. — March 2009 Class 8 preliminary orders were up from the previous month, but were still a whopping 44 percent below the same period in 2008.

FTR Associates’ recent preliminary data shows Class 8 total net orders for all major North American OEM’s totaling 8,594 units in March.

"We did see an increase in orders in March, which is of course positive news following the very low numbers which came in for January and February. However, the annualized rate of incoming Class 8 orders through March is still dismal." Said Eric Starks, President of FTR Associates. "FTR does not see a sustainable rebound in Class 8 order activity for the foreseeable future. The industry and economic environment just don’t support increased fleet equipment purchases."

Meanwhile, North American class 8 trucks continue to depreciate at a heavy rate, according to a report by the American Truck Dealers Official Commercial Truck Guide.

There has not yet been much improvement in any of the economic areas affecting truck sales, says Chris Visser, editor of the guide. Owner-operator trucks have depreciated less than aerodynamic trucks to date. Unfortunately, he says, this is due mostly to the lower original positioning of owner-operator trucks rather than any relative strength in that segment.

As with the Class 8 market, medium-duty trucks also continue to be hit hard by the widespread economic weakness.

On the other hand, there are a few potentially positive factors that could play out over the next few months. First, more first-time buyers may be taking advantage of low housing prices. These observations cast consumer spending in a positive light. Second, as President Obama’s infrastructure plan ramps up, there is potential for increased demand for medium and heavy trucks with construction specs, as well as flatbed trailers, the report notes.