Editorial: The Summer of Strength

With Labor Day right around the corner, it means the summer of 2014 is rapidly drawing to a close.

Historically, these easygoing months are filled more with vacations and barbecues than with serious business.

This year, however, several strong months in a row are showing that a long-awaited truck-buying renaissance is under way.

WardsAuto.com reported that U.S. retail heavy-duty truck sales jumped 22.5% in July from a year earlier to 18,793 units.

That impressive sales total, the second-highest this year, followed a 21.6% percentage gain in June. These back-to-back gains of more than 20% each were accomplished for the first time since April-May 2012.

The past two months also were the third- and fourth-highest monthly totals dating to 2006, the high point for sales, that was propelled in part by fleets buying ahead of normal schedules to avoid being early adopters of engines built for the 2007 emissions standards.

While we often tend to focus on year-over-year comparison as a key performance gauge, we are aware unexpected events can skew those figures. But combined with such significant sales figures, it is hard to call this summer anything short of remarkable.

At 118,583 sales through July, 2014 is the first time the figure has exceeded 100,000 since the year remembered for the pre-buy.

Most of the comments on truck sales from analysts and original equipment manufacturers center on growing economic confidence and freight demand, as much as on the need to replace older vehicles with newer, more fuel-efficient models.

And the outlook for the immediate future appears bright, as ACT Research recently reported a 70% increase in truck orders for July from a year earlier. It was the strongest July figure on record, ACT said.

One analyst said that Class 8 “backlogs are building” and there should be “a relatively steady cadence of deliveries into next year.”

Business remains strong in the medium-duty universe as well.

Sales of Classes 4-7 trucks were up 17.9% in July from a year earlier, following a dip in June.

Year-to-date, medium sales are up 9.3%, and 2014 is the first time since 2008 that volume by July has topped 100,000.

“The gain is counter to what we would expect to see based on historical seasonal patterns,” said Steve Tam, vice president at ACT Research Co. “Once you get into July, that’s when everyone kind of disappears.”

Here’s hoping that, as the summer sun begins to set, there isn’t a disappearing sales act any time soon.