ACT Research chief economist Sam Kahan said the industry’s ability to build appears to be the “overarching factor impacting 2011 Class 8 volumes.”
While some near-term concerns are being generated on the international scene and the U.S. political landscape, demand for commercial vehicles continues to be solid. Strength continues across all segments of the commercial vehicle market, but recent slowing in momentum in freight movement must continue to be monitored, according to the most recent data reported by ACT.
The July issue of the ACT North American Commercial Vehicle OUTLOOK shows that Class 8 backlogs rose for the ninth consecutive month, as the industry orderboards reflect pent-up replacement demand and the fleets’ financial ability to fulfill that demand.
“Our expectations in the near-term are somewhat tempered by the softness in the second quarter of the year,” Kahan said. “While the economy continues at a rather slow pace, Class 8 truck demand continues to be strong, driven by longer-term demand factors rather than the short-term gyrations of the economy. Ability to build still appears to be the overarching factor impacting 2011 Class 8 volumes.”