Pre-buy absent even as economy recovers: Survey

WESTLAKE VILLAGE, Calif — News that the worst of the recession is over doesn’t seem to be translating into new truck sales.

According to the J.D. Power and Associates 2009 Heavy-Duty Truck Customer Satisfaction Study, customers remain hesitant about buying new trucks over the next year. 

The number of those who say they "definitely will" purchase a new Class 8 truck in the next year is down to 16 percent from 25 percent in 2008, the lowest purchase intention level in seven years.

"Freight tonnage continues to decline, and fleets are increasing the length of time they keep their trucks operating — both of which lower demand for new trucks," said Brian Etchells, senior research manager of the commercial vehicle practice at J.D. Power and Associates. "While impending new emissions standards often create pull-ahead sales, a 2009 pre-buy seems unlikely, even amid improving diesel prices and some signs that the economic recession is slowing."

Historically, heavy-duty truck sales go down first at the beginning of a recession and bounce back last at the end of an economic downturn. 

The 2009 Heavy-Duty Truck Customer Satisfaction Study is based on responses from 2,425 primary maintainers of two-year-old Class 8 heavy-duty trucks. The study was conducted in April and May 2009.

A similar study, the Fleet Sentiment Report Buying Index by CK Commercial Vehicle Research, found there may be slightly more buying initiative out there, however.

Fleets are only 1 percent more inclined to buy new equipment in the third quarter of 2009, from the second quarter, but nearly half (48%) questioned said they would be placing orders for power equipment, while 39 percent said they were planning to order trailers by the end of the year.

Most respondents were planning smaller orders, however.

The percent of the planned orders of power units designated for added capacity is up to 32.3 percent from the second quarter’s 23 percent.