Private Fleet Additions Continue to Support Class 8 Demand in February

ACT Research Reports Final February Class 8 net orders, at 27,745 units were up 16% y/y

Final February Class 8 net orders, at 27,745 units were up 16% y/y. Total Classes 5-7 orders were up 8.6% y/y at 19,127 units, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report.

“Given ongoing weak for-hire economics, we believe private fleet capacity additions continue as the driver of US tractor orders above replacement levels,” according to Kenny Vieth, ACT’s President and Senior Analyst. “US tractor orders totaled 17,213 units, up 32% y/y. The vocational market remains strong, particularly in the US, where nearshoring and government programs have spurred investment.”

“Coupling a declining US tractor sales trend in 2H’23, and the seasonally weakest time of the year for Class 8 retail sales in the year’s first trimester, with strong production expectations, conditions were ripe

for a large inventory jump in Q1’24,” Vieth continued. “Even as sales have remained at seasonally healthy rates, February production pushed Class 8 inventories to a four-year high of 73,900 units, up 7,705 units or 12% m/m and 24% y/y.”

Regarding Classes 5-7, he concluded, “MD inventories remained at highly elevated levels in February, as medium-duty bodybuilder labor challenges persist. Inventories totaled 86,420 units on a nominal basis, up 27% y/y.”

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