| Market trends indicate the beginning of recovery for | | | | trucking industry fleet size increases are likely to |
| manufacturers of dry freight vans, refrigerated vans, | | | | follow. |
| flatbed trailers and other truck trailers. | | | | Prices of used trailers, which had weakened |
| Recent reports indicate that the truck trailer market | | | | significantly in the past two years, are stabilizing and |
| in the U.S. is rebounding. Trailer Body Builders | | | | are expected to rise according to American Trailer |
| Magazine reported that new factory orders are up | | | | Exchange, an Atlanta based truck trailer dealer. With |
| 168% from levels of one year ago. The industry, | | | | trailer production in the past few years at below |
| which was decimated in 2008 and 2009, is expected | | | | historical replacement levels, this may result in a |
| to begin a slow recovery in 2010, but it is not likely | | | | shortage of five year old and newer trailers in the |
| to return to pre-recession levels until 2012 or later. | | | | near term. |
| Increased demand for new trailers can be attributed | | | | Today, there is significant excess production |
| to the trucking industry's need to upgrade aging | | | | capacity, but supply and demand for truck trailers are |
| fleets as well as anticipated freight shipment | | | | expected to trend toward equilibrium in the next two |
| increases as the overall economy recovers. Even so, | | | | to three years. The past two years have been |
| 2010 trailer orders are expected to continue to be | | | | especially difficult for manufacturers, dealers and their |
| below normal replacement levels as truckers remain | | | | employees. The industry is looking forward to better |
| cautious about increasing fleet size due to concerns | | | | days ahead. |
| about low freight rates. As profitability returns to the | | | | |