July 19, 2017 5:00 PM, EDT

Mack’s Second-Quarter Orders Surge 58%

Mack truck hood ornament Steve Byrne/Flickr

For the second consecutive quarter, Mack Trucks delivered fewer trucks than a year ago but received a surge in orders, as a result of an active construction segment and slowly improving freight environment in North America.

But the decline in deliveries wasn’t nearly as pronounced as the first quarter, when Mack reported a 24% decrease from the year-earlier period. In the second quarter, Mack delivered 5,507 trucks worldwide, a mere 1% decline — or a drop of 81 trucks — from the 5,588 completed a year ago, according to a report released July 19 by Mack’s parent company, Sweden’s Volvo Group.

Meanwhile, Mack received 4,746 orders during the second quarter, a 58% rise from 3,007 in the year-earlier period. Mack’s primary market, North America, drove most of the growth, responsible for 4,143 orders in the period, a 48% increase from a year ago.

By comparison, there were 5,281 orders for Volvo-branded trucks in the quarter, a smaller increase of 16% from last year.

For Mack, the surge in orders, which translates to future deliveries, backs up the recent hiring the company has been doing at its 1-million-square-foot Lower Macungie Township facility, where all Mack trucks built for the North American market and export are assembled.

The company’s Lehigh Valley Operations, as they’ve been dubbed, employ about 1,800 people, spokesman Christopher Heffner said last week.

According to the Volvo Group, the highway segment in North America is still “characterized by over-capacity due to the underutilized population of used long-haulage trucks.” But, the company noted, the construction segment continues to perform well and regional distribution is showing signs of higher activity.

As such, Volvo upgraded its heavy-duty truck forecast in North America to 225,000 units for 2017, up 10,000 from its previous estimate.

In the second quarter, Mack’s market share in North America increased to 8.2%, while Volvo Trucks’ share decreased to 8.8%.


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