May 2010 commercial trailer net orders were up 59% from the prior-year month, continuing a healthy rebound from a very weak 2009, according to ACT Research Co. Through May, year-to-date net orders for trailers are up 69%.
In the latest release of State of the Industry: US Trailers, ACT noted 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,” said Kenny Vieth, senior analyst and partner with ACT. “With capacity tightening, trucker profits should begin to improve and swing the pendulum in favor of replacing and growing an aging trailer fleet.”