Class 8 Sales Remain Modest for January and February 2023
When you consider that January and February tend to be the slowest months of the year for the trucking industry, the fact that the numbers did not change too much from the year prior is a good sign. FTR and ACT Research have the numbers.
January 2023 Numbers
FTR reports the January 2023 orders for big rigs to be 21,600 units. This is a drop of 21% compared to a hectic December, but a 2% increase from the January prior.
Eric Starks, chairman of the board at FTR, says that the 2% increase in sales put an ever-so-slight dent in the backlog that we have been seeing for well over a year due to supply chain shortages. He writes:
“Orders remain above replacement demand levels but are below recent production activity. As such, backlogs likely moved slightly lower in January. Putting the order numbers into perspective is important. In the first half of 2022, orders averaged just shy of 18,000 units per month. This suggests that recent activity is healthy, and January itself is up 2% year-over-year. This type of activity by fleets indicates that they are not overly concerned about an economic recession and continue to lock in build slots for the second half of 2023.”
February 2023 Numbers
ACT Research reports 23,600 units moved on the shortest month of the year. ACT Research actually had a significantly more pessimistic outlook for January than FTR, at 18,400 for that month. If ACT Research is to be believed for both months, this would mean a 28% jump from the month prior and a 12% increase from the same month last year.
How did FTR pin the February numbers? 22,800 units: a slight increase from January but an 8% jump from the first month of January 2022.
Conclusion
Despite modest sales numbers for both months, the backlog continues to remain strong, with Navistar International reporting that their planned production for 2023 is now fully scheduled and that they will be taking orders for 2024 shortly.
With the backlog continuing to loom over the trucking industry like a full cloud, it is only a matter of time before we have a repeat of September 2022, where Class 8 truck sales broke records. Slots are filling up fast, so if you want a new truck in September 2023, now is the time to place an order where you can find a slot. If you need financing, TopMark Funding may be able to help. Read on below for more information.
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