Builders of heavy-duty trucks can expect a significant drop in production for 2017 primarily due to lower freight volume versus dealer inventory, according to Kenny Vieth of ACT Research.
“In a nutshell, there are too many trucks and not enough freight,” Vieth told Trucks.com.
J.P. Morgan Securities analyst Ann Duignan estimates that production of trucks in the heaviest Class 8 weight segment will fall 28 percent from 2015 to just 232,000 units this year.
The rate of decrease will likely slow next year. Duignan estimates Class 8 truck production will drop 14 percent in 2017 to about 200,000 trucks.
But the industry did get some good news in November.
Orders for Class 8 trucks last month reached 19,500 units, up 16 percent from the same month a year earlier, Duignan said Sunday in a report to investors.
The positive growth in orders last month reversed 20 consecutive months of year-over-year declines, Duignan said.