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Class 8 Truck Sales On The Rise

Every industry has certain indicators that show its strength.  Positive indicators show that the industry is growing stronger while negative indicators show that it is growing weaker.  The trucking industry is no exception to this rule and has many such indicators.  One such indicator is how many truck sales of a certain class take place in a certain month.  Recently, this indicator shows that there is resurgence in the industry.

FTR Transportation Intelligence stated that Class 8 truck sales numbered 22,900 trucks in February 2017.  That is 5 percent higher than it was in January and 28 percent high than one year ago.  This marks a fourth straight month of an increase in Class 8 truck orders and the backlog is now over 100,000 units, which is the highest it has been since June of last year. 

According to the numbers from the past three months, the number of Class 8 trucks sales is on pace to 263,000 units this year.  That is not as high as it was in 2015, where 278,000 units were sold, but higher than 2016, with 216,000 units sold.  However, some industry analysts say otherwise.  One analyst from J.P. Morgan predicts that 200,000 Class 8 trucks will be produced this year while another from Stifel Financial Corp. predicts the production of 215,000 units.  However, these are just predictions and nobody can predict the future.

Now what does this mean for the trucking industry?  First, trucking companies need more trucks to do their job.  That means that more freight is moving, which indicates that business is good.  Second, there is a need for more Class 8 trucks.  This means that there is a need to produce more of them and this puts people to work and money in people’s pockets.  Third, it means that more people are buying stuff.  People have more money to spend, which means that the economy is healthy and strong.  In other words, the trucking industry is growing.  How much it will grow is yet to be seen.