Final February Class 8 net orders, at 27,745 units were up 16 percent year/year. Total Classes 5-7 orders were up 8.6 percent y/y at 19,127 units, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report.

“Given ongoing weak for-hire economics, we believe private fleet capacity additions continue as the driver of US tractor orders above replacement levels,” according to Kenny Vieth, ACT’s President and Senior Analyst. “U.S. tractor orders totaled 17,213 units, up 32 percent y/y. The vocational market remains strong, particularly in the US, where nearshoring and government programs have spurred investment.”

“Coupling a declining U.S. tractor sales trend in 2H’23, and the seasonally weakest time of the year for Class 8 retail sales in the year’s first trimester, with strong production expectations, conditions were ripe for a large inventory jump in Q1’24,” Vieth continued. “Even as sales have remained at seasonally healthy rates, February production pushed Class 8 inventories to a four-year high of 73,900 units, up 7,705 units or 12 percent month/month and 24 percent y/y.”

Regarding Classes 5-7, he concluded, “MD inventories remained at highly elevated levels in February, as medium-duty bodybuilder labor challenges persist. Inventories totaled 86,420 units on a nominal basis, up 27 percent y/y.”