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.”
Linda Garner-Bunch has been in publishing for more than 30 years. You name it, Linda has written about it. She has served as an editor for a group of national do-it-yourself publications and has coordinated the real estate section of Arkansas’ only statewide newspaper, in addition to working on a variety of niche publications ranging from bridal magazines to high-school sports previews and everything in between. She is also an experienced photographer and copy editor who enjoys telling the stories of the “Knights of the Highway,” as she calls our nation’s truck drivers.
