According to the latest release of the North American Commercial Vehicle Outlook report from ACT Research, expectations for the Class 8 and trailer production volumes have been trimmed for 2020, and expectations of a recovery starting in 2021 have been tempered.
In releasing its report, ACT Research notes current order softness and excessive inventory building in the medium-duty sector contributed to forecast reductions in the next two years for that segment, as well.
“Broadly, there are three components to the forecast cuts for 2020 and 2021: Supply, demand, and timing,” says Kenny Vieth, ACT president and senior analyst. “Some, like overcapacity, have been on the radar for a long time. Others, like the growing weakness in manufacturing and the broader economy, have come on slowly and inexorably over several months.”
He adds, “The past six months have been marked by a continued loss of traction in manufacturing. Despite the GM-impacted payroll increase in November, most recent evidence from the sector suggests that recovery is likely to come later, rather than sooner.”
ACT’s recent Outlook report also provides a complete overview of the North American market, and takes a deep dive into relevant, current market activity to highlight orders, production, and backlogs, shedding light on the forecast. Information included in this report covers forecasts and current market conditions for medium and heavy-duty trucks/tractors, and trailers, the macroeconomies of the U.S., Canada, and Mexico, publicly-traded carrier information, oil and fuel price impacts, freight and intermodal considerations, and regulatory environment impacts.