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Class 8 vehicle production continues to strengthen

Fundamentals continue to improve in the trucking industry, setting the stage for significant demand for new equipment in 2011, according to ACT Research Co.

In the latest release of the ACT North American Commercial Vehicle Outlook, ACT projects heavy-duty (Class 8) vehicle production will grow 14% year-over-year in 2010 before ramping up significantly to 72% growth in 2011. Medium-duty vehicle (Classes 5-7) production, which is largely tied to health of the housing and construction, is expected to see a more steady and gradual increase in production, growing 19% in 2010 and 32% in 2011.

“While improving trends in trucking are a key component of improving commercial vehicle demand, the transition to new EPA2010 engines will impact the timing of new order and production ramp-ups,” said Kenny Vieth, partner and senior analyst with ACT Research. “With production of trucks with pre-mandate engines continuing into the second quarter, we now project the trough for heavy-duty truck build will occur in the third quarter before picking up in the fourth quarter of 2010.”

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