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ACT Research: Cancellations moderate May trailer orders

June 25, 2019
After accounting for cancellations, ACT's preliminary estimate dropped to 10,500 units in May.

ACT Research reports US trailers orders were at 15,500 for May, which already was a 16% decline month-over-month, but after factoring in cancellations, its preliminary estimate dropped to less than 10,500 units—down 28% from April.

Year-to-date, net orders are 40% below last year, according to this month’s issue of ACT’s State of the Industry: U.S. Trailer Report. Near-record backlogs filled 2019 build slots for many OEMs, and there continues to be resistance toward booking orders into next year, resulting in the order volume contraction.

“We’re now running into very difficult year-over-year comparisons, as OEMs are generally unwilling to accept orders for 2020,” said Frank Maly, ACT’s director of commercial vehicle transportation analysis and research. “We hear that some OEMs may open their 2020 orderboards in June. If so, expect better comparisons in the months ahead.

“However, given market pressures of strong capacity growth in the face of a slowing economy and tariff uncertainties, the anticipated order surge may not be as robust as many may assume.”

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