According to ACT Research’s (ACT) latest State of the Industry: NA Classes 5-8 Report, while the economic set-up remains favorable, considerable friction and uncertainty have been added, with many more loose ends in the economic story than there were a month ago.

According to Kenny Vieth, ACT Research’s President and Senior Analyst, “Despite the economic uncertainty and considerable inflationary friction, North American commercial vehicle markets continue to perform at status quo levels.”

He continued, “Persistent supply-chain constraints are still limiting the industry’s ability to raise production levels to align with demand. As a result, backlogs remain long and order volumes remain constrained due to ‘within 12 months’ order reporting ground rules. Until build rates find traction, orders are expected to largely mirror production levels.” Vieth added, “It’s also important to remember that Russia’s invasion of Ukraine did not occur until Feb. 24. Hence, we do not believe there is any impact on February’s market statistics.”

Regarding commercial vehicle segment production, Vieth commented, “After high-side beats in December and January, Class 8 production moderated to in-line with expectations in February. Classes 5-7 build stayed choppy, with a rebound to trend build rates in February, after sharply lower production activity in January.”