We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Hot truck demand handcuffed by chip shortage

Hot truck demand handcuffed by chip shortage

North American orders for class 8 trucks hit five-month high in August, ACT says.

FTR-Screen-Shot-2021-09-03-at-4.05.32-PM.png
September 3, 2021
Supply Chain Quarterly Staff
No Comments
A shortage of semiconductor chips is slowing auto manufacturers’ efforts to meet soaring demand for Class 8 trucks as U.S. freight capacity remains tight with the winter peak season right around the corner, two reports found Thursday.

Preliminary North American Class 8 net orders in August hit a five-month high of 36,900 units, driven by the economic rebound from the pandemic recession and hot consumer buying activity, Columbus, Indiana-based ACT Research found.

“Demand for commercial vehicles was alive and well in August, as the Classes 5-7 market continued to build on record-setting volumes. And after a period of moderation related to limited 2022 build slot access, Class 8 orders began their climb into the end of 2021,” Kenny Vieth, ACT’s president and senior analyst, said in a release. “While the supports for new vehicle demand remain in unprecedented territory, the industry’s ability to convert that demand into vehicles remains constrained by numerous supply-side issues that begin with, but are not limited to, semi-conductors. As such, production challenges are likely to weigh on orders, even as backlogs continue to rise.”

A separate report also pointed to the tight chip supply as a chokepoint for truck production. According to Bloomington, Indiana-based FTR Transportation Intelligence, preliminary North American Class 8 net orders for August rose 51% from July to 39,400 units, a similar number to ACT’s finding.

Despite that demand, manufacturers are still having difficulty scheduling production in the first quarter due to continuing uncertainties with the supply chain.

“The supply chain is still impacting the entire industry and Class 8 orders are no exception,” Don Ake, vice president of commercial vehicles for FTR, said in a release. “It’s difficult to know how many trucks you can produce in the first quarter when many components, and especially semiconductors, are in short supply. Once commodity costs stabilize and the supply chain gets into balance, orders will soar, and build rates will jump.”

In the meantime, truck production is proceeding at a more “measured” pace than expected, he said. “Fleets have wanted to place their 2022 orders for months. They are in desperate need of trucks presently and with the freight market being so robust, anticipate that build slots will again be scarce next year. OEMs, on the other hand, have been reluctant to open their order boards due to high commodity prices and supply chain uncertainties,” Ake said.

Don Ake shares why heavy truck production levels can't meet demand. Unsurprisingly, it involves supply chain issues. Watch now: https://t.co/LZOtoE4mkm

— FTR | Transportation Intelligence (@FTRintel) September 2, 2021

Preliminary NA Class 8 net orders in August were 36,900 units, while NA Classes 5-7 net orders jumped to 31,900 units, both representing five-month high readings.https://t.co/r1rSZttY3U#truck #semitruck #trucking #transportation, #ACTResearch #ACT pic.twitter.com/W8J4rlQDbv

— ACT Research (@actresearch) September 3, 2021
Trucking
KEYWORDS ACT Research FTR Transportation Intelligence
    • Related Articles

      Truck builders booked few orders in November as semiconductor shortage squeezes manufacturing lines

      ATA says Intel chip plant in Ohio could jumpstart truck production

      Hot trucking sector reined in by diesel prices, Russian invasion of Ukraine

    Recent Articles by Supply Chain Quarterly Staff

    Saddle Creek adds 1.8 million square feet of warehouse space in four markets

    Penske’s 3PL arm to expand brokerage capabilities with new offices in Chicago and NJ

    ERP vendor Aptean acquires TMS provider TOTALogistix

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing