May commercial trailer net orders were up 59 percent from the prior year month, continuing a healthy rebound from a very weak 2009, according to ACT Research Co. (ACT), an analyst firm in the market for commercial trucks and trailers. Through May, year-to-date net orders for trailers are up 69 percent.
In the latest release of State of the Industry: U.S. Trailers, ACT noted that order backlogs rose an additional 10 percent in May, the fifth consecutive month backlogs have increased, despite an increase in the production rate. Additionally, order cancellations continue to be very low as truck fleets see growing demand for services.
"All signs are indicating that freight growth is rapidly absorbing excess truck capacity," says Kenny Vieth, senior analyst and partner with ACT Research. "With capacity tightening, trucker profits should begin to improve and swing the pendulum in favor of replacing and growing an aging trailer fleet," added Vieth.
Read Full Article
Timely, incisive articles delivered directly to your inbox.