Preliminary net trailer orders for April were up a whopping 126% year over year, ACT Research says. They were just up 3% month over month, but Jennifer McNealy says it's still surprising for a historically tepid month.
"A sequential drop in net orders is typically expected as April traditionally marks the second consecutive month of 'weakest' months of the annual order cycle," says Jennifer McNealy, director of commercial vehicle market reserach and publications at ACT. "That said, this year's cycle seems to have been delayed a few months, as the order upticks that should have started in September or October of last year didn't actually happen until December. Regardless of the timing, the order upticks are certainly welcome."
[RELATED: Nominate a business for the Trailblazer Award!]
As freight rates rise and carriers become more confident in the state of the market, McNealy says analysts know have a better idea of what a trailer recovery would look like.
"But it remains to be seen how the final two months of Q2 will unfold," she says. "Additionally, concern is mounting about how quickly trailer OEMs will build down the relatively still-thin backlog, particularly given concerns about the level of activity in the key freight-generating economic sectors that drive transportation demand and high petroleum prices that weigh on purchasing decisions for both consumers and fleets."
ACT's data was part of its State of the Industry: U.S. Trailers report that provides a monthly review of U.S. trailer market statistics as well as trailer OEM build plans and market indicators.
