COLUMBUS, Ind. – Tougher conditions are in store for medium- and heavy-duty truck sellers in 2020, according to ACT Research’s latest State of the Industry: NA Classes 5-8 report.
“After peak build and sales in 2019, significant declines are ahead in 2020, as sales and build will follow trends in net orders and backlog volumes lower in their respective markets,” said Kenny Vieth, ACT Research’s president and senior analyst. “Recent articles point to a growing belief that a recession is likely to be averted in 2020, so the economic ‘days’ are likely to become brighter as we move through 2020. Unfortunately for the industry, the expected rebound will not come soon enough, or be robust enough, to take a sharp equipment downturn off the table.”
Vieth said November Class 8 order numbers “quelled thoughts of a better-than-expected order season.”
In terms of the medium-duty market, Vieth said “Weakness has spread in medium-duty demand. The drivers of lower build rates are weak orders, falling backlogs, and elevated inventories.”