Heavy Truck Orders Plunge, Worst September since 2009
by Wolf Richter
WolfStreet.com
October 5, 2016
Orders for Class 8 trucks – the rigs crisscrossing the US highway system that keep the nation supplied – plunged 27% in September to 13,791, according to FTR Transportation Intelligence. It was the worst September since 2009.
The year 2014 had been great. Nearly 300,000 Class 8 trucks were built. 2015 started out even stronger, and the industry anticipated – in what has become a series of false hopes inspired by QE-nurtured optimism about capital expenditures – that 327,000 heavy trucks would be ordered, which would have been a record.
But then the trucking industry began to sputter as the goods producing economy was swooning, and soon trucking companies, beset by overcapacity, began to curtail their purchases from heavy-truck dealers, and dealers with inventories piling up, began to cut orders to manufacturers. As 2015 wore on, orders continued to fall. Despite the strong beginning, orders ended the year down 5.3% from 2014, to 284,000 trucks.
This year has turned out to be outright ugly. So far, manufacturers have received only 130,305 orders, according to FTR, a 39% collapse from the same period in 2015. This chart shows orders for Class 8 trucks in 2015 and 2016 through September:
The Rest…HERE
