OEMs Start Filling First Quarter Construct Slots – Gear

The normal summer time Class 8 order hunch ended a month early this yr as OEMs begin filling of their first quarter manufacturing slots for prime prospects, explains FTR’s Don Ake.

North American Class 8 internet orders for August jumped 98% month-over-month to 21,400 models, in line with FTR.

“It’s fascinating that August order totals are so near the January-March numbers earlier this yr. Identical to then, OEMs have to be cautious to not overbook, with the provide chain nonetheless not exhibiting a lot progress,” Don Ake, FTR’s vice chairman of economic autos, mentioned in a press launch. “Nevertheless, order totals are anticipated to leap within the coming months when all OEMs fill in all the primary quarter construct slots. The wants of the fleets nonetheless drastically outnumber the manufacturing capability of the OEMs below the present restrictions.”

Most OEMs started putting a restricted variety of orders for the primary quarter of 2023.  It seems OEMs have returned to the sample of the primary quarter of this yr when orders averaged 21,100 models. It’s anticipated that orders will proceed to rise subsequent month as further orders are booked for Q1 deliveries, FTR officers says.

Bookings have been down 46% year-over-year versus a sturdy August in 2021.

“The economic system has slowed down and freight development has eased, however there may be nonetheless a major quantity of pent-up demand because of the persistent provide chain delays,” Ake mentioned. “Some fleets have run their vehicles properly previous their deliberate alternative cycles and desperately want new vehicles. The trade has responded properly to the availability shortages however will want a rise in manufacturing in 2023 to start to stability out.”