ACT: US Trailer Orders Easing, But Production Remains Robust
JUN 3, 2019 - 6:40 am
According to this quarter’s ACT Research Trailer Components Report, trailer industry net orders have eased meaningfully since November of 2018, as year-over-year-comparisons have now been in the red for the last five months, but order weakness is not indicative of fleets’ unwillingness to invest.
“Year-to-date net orders through April were just over 80,000 units, down 37% from last year, but despite this, current orderboards still stretch to nearly year-end for the total industry,” said Frank Maly, director–CV Transportation Analysis and Research at ACT Research. “Order weakness is more a symptom of OEM reticence to fully open 2020 orderboards than fleets’ unwillingness to invest, as we’re hearing of OEMs actively gathering ‘verbal commitments’ for the first half of 2020, with some orders reportedly being posted as ‘price pending’.”
Additionally, Maly said, “Softer new orders have been joined by higher cancellations in recent months, despite widespread implementation of cancellation penalties. However, trailer production continues at robust levels, with March of 2019 as the second highest production month in industry history.” He added, “ACT anticipates strong production levels through the remainder of this year, but see OEMs continuing to be challenged by component and material issues, as well as staffing.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
The idea that any company can future-proof its business ignores the reality that there will always be new changes we can’t foresee. In 2019, Monitor 100 companies posted an 8.4% increase in new business volume on a year-over-year basis, continuing... read more
The only reliability in change is the fact that it will always happen. As an industry that is constantly changing, equipment finance must be prepared to handle sudden shifts. One of the most notable and persistent changes is the fact... read more