The trucking industry has been slowly recovering from COVID-19, with companies like Titan Transline working on getting back to full operational capacity. Part of the recovery process has been getting new equipment, and, as a result, demand for trucks, and other logistical equipment has been going up.
The American Commercial Transportation Research Co. released a preliminary report early October 2020, which said that Class 8 vehicle orders in North America went up by 60% from August; 145% from the same time in 2019, amounting to a total of 31,100 units. Alongside this, the Classes 5-7 market saw orders for a total of 26,900 units, amounting to a 37% month-on-month increase from August, and a 48% increase from September 2019.
The data was published as a peek into their State of the Industry report, covering Classes 5-8 of vehicles, and analysing current production, sales, and the overall state of heavy- and medium-duty vehicle markets in the North America region. It segments Class 5, and Classes 6-7 by configuration, covering buses, RVs, step vans, and trucks, with Class 8 segmented into trucks and tractors.
ACT Research will publish the rest of their September 2020 industry data later in October.
ACT President and Senior Analyst Kenny Vieth says that preliminary data shows that September saw a good increase in orders for medium- and heavy-duty vehicles, making for a four-month streak of increases; a good sign for the trucking and logistics industries after 19 months in a row of negative year-on-year numbers.
Overall, Classes 5-8 went up by 49% from August 2020, and 88% from September 2019.
Vieth explained what was going on, saying that Q3 saw orders coming back to relatively healthy levels, showing that companies like Titan Transline and the industry at large was slowly recovering. However, most of those orders were for filling open slots in 2020, meaning that the majority of September’s 2021 orders would have to be for 2021.
The medium-duty market and the heavy-duty market are symbiotically linked, Vieth notes, which was made obvious by recent events. The shift in consumer spending to goods, from services and experiences, has shown to be quite beneficial for trucking service providers.