Friday, January 19, 2018

Current used truck sales up, but downturn for all of 2017 forecast


Tuesday, April 25, 2017
by THE TRUCKER STAFF

ACT Research officials said despite year-to-date actuals in terms of used truck sales, 2017 used Class 8 truck sales will see a small decline from 2016 and that elusive freight growth and lower new truck sales are the basis of the assumption. (The Trucker: LYNDON FINNEY)
ACT Research officials said despite year-to-date actuals in terms of used truck sales, 2017 used Class 8 truck sales will see a small decline from 2016 and that elusive freight growth and lower new truck sales are the basis of the assumption. (The Trucker: LYNDON FINNEY)

COLUMBUS, Ind. — There are two positive signs of upward movement of used truck sales and trailer production and another not so positive, ACT Research has reported.

Class 8 same dealer used truck sales volumes continued to show strength in the closing month of the first quarter, increasing month-over-month with a third sequential double-digit rise.

Total volumes also showed improvement in long-term comparisons, up year-over-year when compared to last March, and year-to-date compared to the first three months of 2016.

“From a micro perspective, all signs are pointing north with all three market segments posting sequential improvements in all time comparisons,” said Steve Tam, vice president at ACT Research.

The retail segment reported a month-over-month increase in March, while the auction and wholesale markets saw month-over-month, increases, too.

“But, despite year-to-date actuals, we believe 2017 used Class 8 truck sales will see a small decline from 2016,” Tam said. “Elusive freight growth and lower new truck sales are the basis of the assumption.”

On the trailer front, facilitated by the additional build days, trailer production jumped 25 percent from February, the highest level since March of last year.

“Roughly 60 percent of the month-over-month gain came from the additional build days in the quarter-ending month, while the remaining 40 percent improvement came from a 94 units per day sequential jump in the build rate,” said Frank Maly, director–CV transportation analysis and research at ACT. “Even with that surge, it appears that the industry’s additional production capacity is still not being fully utilized.”

Trailer shipments closed the first quarter with a 26 percent increase from February, with every trailer category being up from last month.

“The 26 percent sequential gain was almost exactly aligned with seasonal expectations,” Maly said. “The strong orde rboard turnaround that began in December is finally being reflected in build and shipments.”

ACT is a worldwide publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market.

ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, as well as the banking and investment community in North America, Europe and China.

For more information on ACT, please visit http://www.actresearch.net.

 

 

 

 

 

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