ACT Research: May Net Trailer Orders Fall 54% Y/Y

According to ACT Research, May’s preliminary net trailer orders decreased sequentially and were lower against longer-term comparisons, with 9,100 units (11,950 seasonally adjusted) projected to have been booked during the month. Final May results will be available later this month. This preliminary market estimate should be within 5% of the final order tally.

“Preliminary net orders were 10% lower compared to April’s intake and down 54% versus the same month last year,” Jennifer McNealy, director of CV market research and publications at ACT Research, said. “Seasonal expectations call for orders to continue their pull back in the coming months, particularly given near record-level order backlogs, as trailer manufacturers normally spend mid-year working down the backlog ahead of the next year’s orderboard opening in the fall.

“Albeit against strong comparisons, demand is softening. In addition to the seasonally-anticipated slowing in orders, we’re starting to see increased and broad-based cancellations. That said, backlogs remain robust, so many fleets needing trailers remain in queue for orders already placed, with relative backlog measurements for most trailer categories still near the top of their target ranges.

“Using preliminary May orders and the corresponding OEM build plans from the May State of the Industry: U.S. Trailers report (April data) for guidance, the trailer backlog should decrease by around 19,000 units to about 194,000 units when complete May data are released. That said, with orders being preliminary and the build number a projection, there will be some variability in reported backlogs when final data are collected.”

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