Truck Orders Decline Significantly in May
Heavy-duty truck orders in North America experienced a dramatic 45% drop in May, and medium-duty truck orders also declined during this typically slow period, exacerbated by unfavorable macroeconomic factors.
In May, the net orders for Class 8 trucks fell by 45% year over year, totaling 13,000 units.
As reported by ACT Research on June 19, orders for both heavy- and medium-duty commercial trucks saw significant reductions. Orders for tractors decreased by 43% YoY, reaching 8,439 units, while vocational truck orders dropped by 48% YoY to 4,584 units.
Additionally, orders for medium-duty trucks (Classes 5 to 7) also saw a notable decline, falling 27% YoY to 14,264 units, according to the same report.
Economic Conditions Impacting Truck Orders
Carter Vieth, a research analyst at ACT Research, highlighted that deteriorating economic conditions are putting pressure on both the heavy-duty and medium-duty truck markets. He noted that as the market enters its weakest seasonal period for new business, Class 8 orders continued their downward trend in May amid weak economic fundamentals and widespread uncertainty, which is hampering demand.
Vieth pointed out that medium-duty orders have been slowing for the past six months, driven by oversupply in inventories and a less favorable economic outlook, which negatively affects new orders.
Additionally, Jim Ryan, Equipment Lease and Finance Manager at Sandhills Global, mentioned that ongoing tariff uncertainties are contributing to a challenging environment for the trucking industry, particularly as most new manufacturing is centered in Mexico. He emphasized that these tariffs could be crucial in determining the market’s trajectory through the rest of the year and into early next year.
Furthermore, Kirk Mann, Executive Vice President at Mitsubishi HC Capital America, stated that rising truck prices are posing significant challenges for operators and dealers alike. Higher prices increase the financial burden of monthly payments for operators and complicate the process for dealers trying to sell inventory.
