North American Class 8 preliminary net orders for August increased 51% from July to 39,400 units. August 2021 activity was + 91% year-on-year with Class 8 orders now totaling 456,000 units for the previous 12 months.
FTR reports that North American Class 8 preliminary net orders for August increased 51% from July to 39,400 units.
The increase in orders came as OEMs began taking more orders for 2022. However, OEMs remain cautious about fully reserving all orders for 2022 as price negotiations continue with many fleets. . In addition, they still have difficulty planning production in the first quarter due to lingering uncertainties with the supply chain.
Don Ake, vice president of commercial vehicles for FTR, said: “Orders have started for deliveries in 2022, but at a much more measured pace than expected. The fleets have wanted to place their 2022 orders for months. They are in desperate need of trucks right now and with the freight market so robust, anticipate that construction niches will be scarce again next year. OEMs, on the other hand, have been reluctant to open their control panels due to high raw material prices and supply chain uncertainties.
“The demand for Class 8 trucks will be huge in 2022 due to growing freight markets and pent-up demand in 2021. Orders will be substantial from August through the end of the year. However, there could be big fluctuations from month to month because OEMs are deliberate in how they handle and categorize orders.
“The supply chain always has an impact on the entire industry and Class 8 orders are no exception. It is difficult to know how many trucks you can produce in the first quarter when many components, especially semiconductors, are in short supply. Once commodity costs stabilize and the supply chain is in balance, orders will skyrocket and construction rates will jump. “