Trailer Industry Expects Good Year in 2012
The commercial trailer sector ended 2011 on solid footing and is well positioned for the third year of growth in the current cyclical recovery. Net orders for total trailers grew 38% year-over-year, while build jumped 69%, according to ACT Research.
“Following some mid-year sponginess, the trailer industry ended 2011 on a particularly strong note: Orders in December were a virtual duplication of November’s five-year high, backlogs rose to their highest level this cycle and cancellations were virtually non-existent,” said Kenny Vieth, president and senior analyst at ACT. “Rising backlogs and low levels of cancellation activity speak to the strength of demand at the start of 2012,” he added.
In a related article, Transport Topics reported that trailer makers expect another banner year. With double-digit growth in sales expected for every type of trailer this year, industry experts said sufficient stocks of materials should be available to handle projected demand, the report noted.
However, if orders exceed those already rosy forecasts, trailer makers are likely to face a shortage of necessary components, Transport Topics reported, citing analysts’ warning.
The article, citing Frank Maly Jr., director of CV transportation analysis and research for ACT Research, said demand is likely to increase in most cargo sectors, with building materials the exception. The market for dry and flatbed trailers is expected to climb by double digits this year over 2011, with a 15% to 18% rise forecast across all types. Demand for refrigerated trailers also should continue rising, though at a slower pace, the article cited Maly as saying.
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