COLUMBUS, Ind. — On continued strong build rates and seasonally weak order volumes, July’s North American Class 8 backlog fell by 11,632 units to 163,576 units, according to ACT Research’s latest State of the Industry: NA Classes 5-8 report.
At 5.9 months, the nominal backlog-to-build ratio remains comfortably healthy into year end.
“With over 90% of the current backlog scheduled for build in 2023, Class 8 backlog is likely to continue to decline until 2024 orderboards are opened,” said ACT President and Senior Analyst Kenny Vieth.
Regarding July’s Class 8 build rate, he noted, “Build slightly exceeded OEM build plans, but remainder of the year guidance was trimmed slightly. Notably, Class 8 build and retail sales were virtually identical last month, keeping inventories at relatively lean levels. Tight inventories are a reminder that pent-up demand continues to be worked off in 2024.”
Class 8 orders rose 41% year-over-year to 15,573 units.
On a seasonally adjusted basis, orders were flat sequentially at 20,100 units.
“July is the worst month of the year for both Classes 5-7 and Class 8 orders,” Vieth said. “While vacations are a likely factor, the bigger ones are systemic. As is often the case, the current year backlog is full. At the same time, the OEMs have typically not yet opened orderboards for next year. Hard to book an order in those circumstances. With the current backlog front-end loaded, orders will receive heightened attention as 2024 orderboards are opened in the next few months.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
