Truck Sales Rise in June 2022, Fall in July 2022
We have been so busy with covering other aspects of the trucking industry that we let a monthly update slip through our fingers. To make up for it, here is a double feature covering the Class 8 sales for June and July, using numbers from FTR.
June 2022 Numbers
FTR pins the number of Class 8 truck sales for June to be approximately 15,000. This is a 13% increase from May, but a 36% decrease from the same month in 2021.
Charles Roth, analyst of commercial vehicles for FTR, says that the numbers are fantastic considering current production capacity.
“The OEMs have a large number of fleet commitments for 2023,” he said. “They are delaying entering these orders until they know how many they will be able to build each month. Supply chain delays continue to constrain build rates. “As a result of replacement demand, fleets still need a considerable number of new trucks right now. Industry capacity remains extremely tight, resulting in elevated freight rates. The carriers have freight to haul and funds available for new trucks, but OEMs remain limited due to parts shortages. Also, large fleets are now running vehicles beyond their trade-in cycles and need to trade in older trucks, which will result in increased replacement demand in 2023.”
Normally this is where we would say “it will be interesting to see what next month holds”, but we have that information right here!
July 2022 Numbers
FTR has the sales numbers for July 2022 at 10,600. This is a decrease of 33% from June and a 60% decrease from July 2021.
FTR compares truck sales to concert ticket sales in its debriefing: it does not matter how much demand there is for tickets if the venue cannot hold them all. Likewise, production continues to be outpaced by demand.
“OEMs could increase production by about 10% over the current rate if they could get the parts, but the supply chain remains clogged,” Don Ake of FTR said in a statement.
What will be interesting to see though is that original equipment manufacturers are expected to open up their 2023 order logs soon.
Conclusion
Any trucking fleets that want to get their hands on a new truck in 2023 may want to keep a watchful eye on the manufacturers, and to get in as soon as the slots open.
If, of course, you need financing for such an occasion, TopMark Funding is able to help!
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