Several truck trailer outlets are reporting a reduction in trailer orders from February 2024 to March 2024, as well as a year-over-year decrease. While not unexpected, orders are expected to be in flux the remainder of the year.
Preliminary net trailer orders decreased nominally from February to March.ACT Research
According to a press release:
Preliminary net trailer orders decreased nominally from February to March. At 13,600 units, orders also were lower compared to last March, down 24% y/y. Seasonal adjustment (SA) at this point in the cycle leaves March’s tally essentially unchanged at 13,800 units. Final March results will be available later this month. This preliminary market estimate should be within +/-5% of the final order tally.
“Against year-ago data still impacted by pent-up demand that is now gone, softer order intake activity continues to meet expectations,” said Jennifer McNealy, director CV Market Research & Publications at ACT Research. She added, “Net orders remain challenged by a backdrop of weak profitability for for-hire truckers. Anecdotal commentary from trailer manufacturers and suppliers through the past several months have indicated this slowing, as they have shared that orders are coming, but at a more tepid pace when compared to the last few years.”
She continued, “This month’s results continue to support our thesis that when fleets don’t make money, their ability and/or willingness to purchase equipment is muted. For the trailer industry, this is compounded by the power-unit prebuy ahead of the EPA’s implementation of 2027 regulations, which we believe has already begun. As a result, cancellations remain elevated, and the choice about how to spend limited capex dollars is swinging the pendulum against trailer purchases right now.”
McNealy added, “While we remain cautiously optimistic and don’t believe this year will be catastrophic for the trailer markets in general, we note that 2024 thus far is matching expectations as a year of transition. While some specialty segments have no available build slots until late in 2024 at the earliest, the industry’s largest segments remain under pressure, and cancellations are anticipated to continue their oscillation into and out of elevator territory as dealers and fleets recalibrate their inventory and immediate needs.”
ACT Research’s State of the Industry: U.S. Trailers report provides a monthly review of the current US trailer market statistics, as well as trailer OEM build plans and market indicators divided by all major trailer types, including backlogs, build, inventory, new orders, cancellations, net orders, and factory shipments. It is accompanied by a database that gives historical information from 1996 to the present, as well as a ready-to-use graph packet, to allow organizations in the trailer production supply chain, and those following the investment value of trailers, trailer OEMs, and suppliers to better understand the market.
