Used Semi Trailers is the prime internet resource for used semi trailer sales and trucking issues.
Today we put the spotlight on the recent announcement of a 25% increase in new semi trailer sales in February:
ACT Research Company is an industry monitoring service and they have reported that the sales of new commercial semi trailers demonstrated a 25% increase in the month of February over the prior month. February semi trailer sales came in at 21,990 according to ACT.
This sales achievement represents a 105% increase when compared to the February of last year (and when the economy was in the pit of the recession).
The numbers also demonstrate that the recovery of the new semi trailer market is broad ranging with all nine major trailer classification sectors demonstrating positive growth on the year-to-date basis for new net orders and for completed shipments. There was a 90% increase in dry van orders while shipments increased by nearly 225% – a massive number which is bringing some heart to an industry which was heavily battered and severely suffering one short year ago.
Year-to-date numbers for total net orders are up a massive 87% when compared to 2010. What is even more encouraging are the shipment results (which demonstrate actual work performed and is a truer sense of revenue growth) – shipments increased 116% when January and February 2011 are compared to the same two month period in 2010.
What are the implications for the trucking industry?
Trailer order wait times have increased, however this should come under control as trailer manufacturers’ ramp up hiring to assist in meeting burgeoning order books. The rate of increase in new trailer sales is also good news for the used semi trailer market as new equipment, is coming onto the market for the smaller carriers and operators (new semi trailers tend to be purchased by the bigger, national companies). The age of the used fleet has been increasing as national carriers postponed equipment replacement decisions and this led to a drying up in relatively new equipment making it onto the used market.
With the relative easing of budgetary restrictions within the industry and the economy at large, we can expect to see a flood of younger semi trailers making it to market. For those looking to sell on older equipment, now is a good time to make the decision as already rock-bottom pricing will be adversely affected further by the flood of used trailers coming to market. On the other hand, with truck freight orders also hitting records as we advance to the end of the first 2011 quarter, all of the equipment which is out there is being heavily utilized – either way, it makes for a very healthy semi trailer market all round.