Truck Sales Have Small Dip for April 2022
Trucking orders lulled for the month, as manufacturers continue to keep a tight backlog and prevent new orders from being added due to demand outpacing supply. ACT Research and FTR have the numbers!
April 2022 Numbers
ACT Research pegs the sales at 15,800; FTR, 15,400. The two organizations, as usual, are very close with their approximations.
These sales numbers signify a 28 percent drop from March and a 56 percent drop from the same month last year. What is the culprit? To be expected, supply chain issues in building a new truck.
“April’s order total does not accurately reflect the current demand for new trucks,” said FTR’s commercial vehicle analyst Charles Roth. “It does, however, reflect a market that is trying to minimize its exposure to the headwinds it could potentially face in 2023. “As production continues to be significantly impacted by supply-chain disruptions, component shortages, labor shortages, and increased material costs, the hesitancy to open 2023 order boards stems from not being able to guarantee pricing given the current environment. Once supply-chain issues improve, OEMs will be able to substantially increase orders. But until then, conditions remain stagnant.”
The explanation for lagging truck sales appears to ring true with truck producers. Paccar Inc. CEO Preston Feight said in a company earnings call: “We’re substantially full for the year in Europe and North America. As we adjust build rates, we can create some openings if we can get the parts for that.”
Conclusion
Considering today’s economic climate, it is really hard to say as to when this period of decreased production will turn around. Trucking companies may find themselves without the newest model year of trucks for some time.
There is a brief respite for trucking fleets in April’s news, however, most auction prices have released some built-up pressure in that month, with one model averaging more than a 15 percent decrease. It appears that for the time being, used is king.
Regardless of whether you hope to get a new or new-to-you truck, count on TopMark Funding to get you the best rate for your credit position! Read on below for more information.
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