May commercial trailer net orders were up 59% compared to the same month a year ago, continuing a rebound from a very weak 2009, according to ACT Research Co. (ACT), an analyst firm that serves the commercial truck and trailer market. Through May 2010, year-to-date net orders for trailers are up 69%.
ACT notes that order backlogs rose an additional 10% 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.”