April Trailer Orders Down 40% Y/Y, Backlogs Remain “Healthy”
Bloomington, Indiana – Trucking business analyst, FTR, reports preliminary trailer orders for April 2019 remained subdued for the second consecutive month coming in at 13,200 units.
April’s order total is 40% below the same month in 2018.
However, FTR indicated the low order level does not in any way reflect a softening of demand, but rather the fact that many large OEM’s have filled their order boards for 2019.
Backlogs remain hefty, with robust production levels, FTR reported.
Trailers orders for the past 12 months now total 364,000 units.
Don Ake, FTR vice president of commercial vehicles, commented, “We expect the backlogs to remain very healthy, supporting continued high build rates. Orders likely will stay at low volumes through the summer, or until OEMs open the 2020 order boards.
Ake said OEMs have been cautious about taking longer-term orders due to uncertainty over future costs. Another factor Ake pointed to that he believes is creating a “cloudy outlook,” is the “Chinese tariff situation.”
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