Trailer orders fall in June, used truck sales up
Despite the decline from May, order volume was up almost 4 percent year-over-year, as reported in the latest “State of the Industry: U.S. Trailers” report.
The Trucker News Services
COLUMBUS, Ind. — Recent softness in trailer industry orders continued in June, while used truck sales improved, according to the monthly updates from ACT Research Co.
ACT said the sluggish trailer orders were a further reflection of the recent soft patch in commercial vehicle demand. Despite the decline from May, order volume was up almost 4 percent year-over-year, as reported in the latest “State of the Industry: U.S. Trailers” report.
“Total production grew 3 percent for the month, but jumped 8 percent on a per day basis, as June schedules had one less workday than May,” said Frank Maly, director-CV transportation with ACT Research. “Soft orders combined with increased production to shrink industry backlogs by 7 percent during June. The industry ended the month with backlogs of just over 104,000 units. The industry typically works off backlog throughout the late spring and summer months, so that decline was anticipated.”
Meanwhile, June used truck sales grew 8 percent over May, but lagged June 2011 and the first six months of last year. And pricing appears to be slowing a little more rapidly than was previously expected, noted ACT in its State of the Industry: U.S. Classes 3-8 Used Trucks.
“While June’s sales appear positive at face value, concerns are now surfacing, especially relative to the amount of inventory on hand and the prices at which those units were acquired,” reported Steve Tam, vice president-commercial vehicle sector with ACT.
He called the pricing slowdown “not necessarily permanent, nor irreversible,” but suggested it is a reflection of current economic conditions.
“Flat demand for more units started the ball rolling. Higher prices have led to changes in financing, which are making transactions more expensive and preventing some potential buyers from making purchases,” Tam said. “The solution lies in increased economic activity, which is expected, but at a measured pace.”
ACT publishes new and used commercial vehicle industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market.