Trailer Industry: Good forecast for 2012 – U.S. image

According to a report from ACT Research the commercial trailer sector ended 2011 on solid footing and is well positioned for the third year of growth in the current cyclical recovery.

Net orders for total trailers grew 38% year-over-year, while build jumped 69%.

“Following some mid-year sponginess, the trailer industry ended 2011 on a particularly strong note,” said Kenny Vieth, president and senior analyst at ACT.

“Orders in December were a virtual duplication of November’s five-year high, backlogs rose to their highest level this cycle, and cancellations were virtually non-existent. Rising backlogs and low levels of cancellation activity speak to the strength of demand at the start of 2012,” he added.

On Tuesday, The American Trucking Associations ’ announced its truck tonnage index jumped 6.8 percent in December over the previous month — the largest month-to-month increase since January 2005.

Some of the gain appears to be from trucks taking market share from the rails, but not much. Total rail traffic was up 7.3% year over year in December (as measured by the American Association of Railroads, orAAR).

Thus, the transportation indicators are strongly suggesting that the economy is headed in the right direction.