Business & Investment

Truck builders rarely booked orders in November as semiconductor shortages are squeezing production lines

The North American fleet ordered fewer new Class 8 trucks than last year as the supply chain slows the efforts of handcuffed automakers to solve the tight truck market by selling more vehicles. ..

The provisional net order volume for November was 9,800 units, down from both the previous month and the same period last year. According to Columbus statistics from Indiana-based ACT Research.

According to ACT, the slump was the result of long-term backlogs rather than sluggish demand, as the pandemic economic recovery and the e-commerce shopping boom continue to generate record-breaking power in the transportation industry.

“The long backlog lead times due to ongoing supply-side constraints continue to put pressure on new ordering,” ACT President and Senior Analyst Kenny Wies said in a release. I am saying. “The conservative order results in November prevent OEMs from extending the cycle of customer expectations, as the backlog has expanded to late 2022 and there is still no clear visibility into mitigating the’all’shortage. Suggests that we continue to take a more cautious approach to booking orders. management. “

The analysis was very closely tracked with another measurement of truck orders in November, and transportation consulting firm FTR found 9,500 tentative North American Class 8 net orders. That number fell 41% from October 2020 and 82% from the same month, as orders fell to the lowest in November since 1995.

FTR based in Bloomington, Indiana Similarly, he quickly pointed out that the low total orders for November were not due to the lack of demand for very high new equipment, but to supply chain uncertainty.

Don Ake, FTR’s Vice President of Commercial Vehicles, is “very reluctant” to increase the total backlog of original equipment manufacturer (OEM) due to uncertainty about the availability of critical components such as semiconductors. Was announced. In fact, OEMs optimistically booked a huge number of orders a year ago and expected it to be fully operational throughout 2021, but due to a lack of parts and components, many of these trucks would be completed. He said he couldn’t.

“This strategy will continue until the supply chain conditions improve. When we are confident that the OEM will get the production input we need, we will be able to increase production and enter more orders,” Ake said. Says. “The backlog remains at a solid level, but OEMs don’t want the backlog to be higher until we know the production capacity. Demand for new trucks is at record levels in 2020. And in 2021, there is tremendous demand. Spot rates are at record levels, contract rates are rising. Used truck prices are also record highs. And the manufacturing sector of the economy As we overcome supply chain crises, we will carry more cargo. “

Truck builders rarely booked orders in November as semiconductor shortages are squeezing production lines

https://www.dcvelocity.com/articles/53171-truck-builders-booked-few-orders-in-november-as-semiconductor-shortage-squeezes-manufacturing-lines Truck builders rarely booked orders in November as semiconductor shortages are squeezing production lines

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