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Trailer Orders Strong in March

The Commercial Carrier Journal (CCJ) reports that nationwide trailer orders for March show an increase of 50 percent over the same month one year ago.  This continues a trend that has seen net order rates increase for four months in a row when compared to the same periods one year ago.

CCJ reports that there have now been approximately 246,000 trailer orders placed over the most recent 12-month period.

Once Hesitant Fleets Now Taking Action

Strong sales in recent months follow a period of caution later in 2016. Frank Maly from ACT Research suggests that many fleets adopted a cautious approach amidst a changing political and economic landscape. As conditions stabilized, more order decisions were finalized.

Don Ake, Vice President of Commercial Vehicles at Freight Transportation Research. reinforced this idea. He told CCJ that “Fleets are growing much more optimistic about the business environment and they are buying more trailers again after a slump the second half of last year.” 

Strength in March Build Rates

Not surprisingly, build rates now reflect the improving pace of orders over recent months. In fact, build rates were a full nine percent higher than they were the previous month. Trailer production in March was similar to that of March 2016.

Despite strong March order figures, typical variations in seasonal demand remained. Approximately 20,000 trailers were ordered in March, a 20-percent decline over the previous month. Analysts attribute this to traditionally soft demand for dry vans and refrigerated trailers at this point in the year.  

Still, the recent strength of trailer orders and build rates bodes well for the industry as the next quarter unfolds. Traditionally, second quarter trailer sales are relatively strong.

Michigan Truck Sales and Equipment maintains a quality inventory of used semis, trailers and construction equipment. We can address all of your parts and service needs as well. For prompt, friendly assistance, please contact us.

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