Strong Economy Keeps Demand for Class 8s High
The May total was 32.8% above the figure for the corresponding month in 1998, and the five-month sales figure — 103,415 — was more than 28% higher than the same period in 1998, according to Ward’s Communication, an analytical firm in Southfield, Mich.
Thom Albrecht, an analyst for the investment banking division of ABN AMRO, cited the continued strength of freight transportation demand, rebounding strength in manufacturing — which is expected to produce increased exports — and projected U.S. economic growth of 3% to 4% as factors spurring truck sales.
He also said “budget surpluses in all 50 states” were encouraging governments to replace their fleets of vocational trucks.
At the current pace, the total would be more than 248,000.
“We have been mildly surprised by the strong market,” Vikner said. “We expected sales to be somewhat above last year, but not this high.”
Vikner said Mack officials think the market for new trucks will remain above 200,000 for some time — barring a massive economic downturn.
John Merrifield, senior vice president for truck manufacturer Sterling, said the “international economy appears ready to gather momentum again, which will power North American exports.”
“This amazing economic expansion we’ve lived through during the 1990s is still creating more business for virtually all segments of the trucking industry,” he said. “The strong economy also benefits Sterling with rising demand for our vocational products.
“We also see increasing infrastructure spending as the TEA 21 funds are spent on rebuilding roads and bridges,” he said, referring to 1998’s massive federal highway bill.
Freightliner continued to hold the biggest share of the Class 8 market, with 31.5%. In May, its brand sold 7,082 vehicles. When combined with the 1,324 Class 8s sold by its subsidiary, Sterling, the company had a market share of 37.4% — nearly two-and-a-half times that of its closest rival, Navistar, which posted sales of 3,460 for a market share of 15.4%.
Every U.S. Class 8 manufacturer posted increased sales over May 1998. Not counting Sterling, which was just beginning sales at this time last year, the largest gain was reported by Kenworth with 2,586 units, up 54.9%. The second-largest increase went to Freightliner, up 41%
eterbilt — Kenworth’s stablemate in the Paccar family of trucks — had sales of 2,371, an increase of 25.7%. Paccar brands posted a total of 4,957 sales in May.
Mack’s sales of 2,818 represented a 21.2% increase. Western Star sold 283 Class 8 trucks for an increase of 15%. Volvo’s sales increased 5% to 2,434.
Ford, which has been selling off inventory since leaving the big truck business last year, recorded no Class 8 sales in May.
For the first five months of 1999, Freightliner posted sales of 32,440, up 35.9% from 1998. Navistar’s figure was 18,226, up 10.1%. Kenworth reported 11,674, an increase of 55.1%. Peterbilt was up 16.9% with sales of 10,138.
Mack sales for the five months were 11,402, an increase of 17.2%. Western Star sold 1,392 trucks for an increase of 19.2%. Sterling sold 5,991, compared to the 48 in the same period last year as it began sales operation.
May sales of medium-duty trucks increased by 22.9% over 1998. A total of 33,330 medium trucks were sold: 10,875 in Class 7; 3,654 in Class 6; 2,488 in Class 5; 4,771 in Class 4; and 11,542 in Class 3.
The five-month sales total is 158,349: 56,473 in Class 7; 16,957 in Class 6; 13,449 in Class 5; 21,051 in Class 4; and 50,419 in Class 3.
