Strong Pent-Up Class 8 Demand in Q4, Good Visibility Shifting into 2023

ACT Research reports “In line with expectations, the industry has witnessed a surge of Class 8 orders into year end”

ACT’s latest release of the North American Commercial Vehicle OUTLOOK reported on the anticipated surge in Class 8 orders coupled with robust pent-up demand at year end.

According to Kenny Vieth, ACT’s President and Senior Analyst, “In line with expectations, the industry has witnessed a surge of Class 8 orders into year end. The resulting growth in order backlogs supports higher production and gives OEMs and suppliers good visibility through 1H’23.” He added, “With strong demand in place and inflation metrics moderating, we are now more convinced that first half build rates will be sustained deeper into 2H’23. The more hopeful view on inflation leads us to modestly raise our 2023 Class 8 build expectations.”

“Supporting the upwards Class 8 revision, we have tempered the severity of the decline we anticipate in freight activity in 2023.” Vieth concluded. “To be clear, we continue to expect a macro recession, and a slight y/y decline in Class 8 build, but recent economic reports and still strong Class 8 fundamentals have us thinking in a more encouraging direction.”

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