A softening of truck orders in 2019 – which followed a record spike in 2018, when the strength of the US economy and changes to business taxes encouraged equipment investment – has now been compounded by the COVID-19 pandemic in 2020. While orders increased in January 2020, orders began to fall again in February until they unprecedented lows in April at just 4,000 vehicles, according to an article published by the Wall Street Journal. Most traditional markets for trucks have experienced severe turmoil since March, causing a dramatic decline in orders for the models needed to transport materials and goods.
The COVID 19 pandemic has caused weakness throughout much of the North American economy, and fewer trucks are needed on the road right now as there are fewer goods being produced and distributed. Even as states reopen manufacturing plants and employees return to work, the uncertainty regarding how long the economy will be depressed will likely reduce order rates in the coming months as well.
Further complicating matters, it is not clear how many existing orders for heavy trucks in North America will be cancelled in coming months as companies go out of business and others reduce production and delay plant openings.
While 2020 is shaping up to be a year or record lows, the North American heavy truck industry will increasingly look to 2021 and beyond for new opportunities as it weathers the COVID-19 pandemic.
For more information, see The Freedonia Group’s Global Diesel Engines and North American Medium- and Heavy-Duty Truck Aftermarket studies as well as our Medium- & Heavy-Duty Trucks & Buses: United States and Global Medium- & Heavy-Duty Trucks & Buses Freedonia Focus reports. Freedonia Custom Research is also available for questions requiring tailored market intelligence.