ECONOMIC WATCH: Trailer orders remain at historic lows
COLUMBUS, Ind. – May trailer orders improved from April, but were still the second weakest month ever, reported ACT Research in its State of the Industry: U.S. Trailer Report.
Net orders totaled 3,107 units. Before accounting for cancellations, orders totaled 7,400 units, a 29% increase from April but net orders were down 71% year-over-year.
“Although up from April’s record low, May’s net orders will still rank as the second weakest in industry history,” said Frank Maly, director, commercial vehicle transportation analysis and research at ACT Research.
“There is little incentive for fleets to invest in new equipment right now. While there has been a general re-opening of the U.S. economy and some post-quarantine consumer-generated surges have been reported, caution continues to be the watchword. Significant apprehension is being expressed about small-to-medium fleets, and the concern is that the PPP lifelines many may have grasped will run out before a post-lockdown economy generates freight at sufficient volumes and profitable rates, which will have serious implications for both trailer OEMs and dealers.”
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