Class 8 demand: soft in Q3, Q4 2012

June 12, 2012

In its June issue of the ACT N.A. Commercial Vehicle OUTLOOK, Americas Commercial Trucking (ACT) Research Co. LLC has lowered its Class 8 build expectations for the second half of the year.

The adjustment is due to continuing softness in demand. Expectations for medium-duty build were unchanged. The trailer industry outlook was basically unchanged as orders and backlogs reached cyclical highs.

“Despite the data that we use to gauge demand being nearly uniformly positive, Class 8 demand, as expressed by incoming orders, has hit a soft patch,” said Kenny Vieth, ACT’s president and senior analyst.

“Presently, the rewards of buying a truck are not sufficient to justify the financial risks. We believe the current weakness is centered in the credit-buyer side of the market.”

Vieth said that a continuation of reasonable freight growth, strong trucker profits and healthy used truck prices are expected to support demand once the current period of uncertainty is worked through.

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