ACT Research reported Tuesday August trailer orders continued to reflect the early opening to the 2018/19 order season with total trailer net orders of more than 38,000 units. This number was up 31 percent month-over-month and 142 percent better than the same period last year, the company writes in its ACT Research’s State of the Industry: U.S. Trailer Report.
“Seven of ten trailer categories were in the black m/m (flats, heavy lowbeds and dump trailers trailed the pack), while y/y eight of ten were better (bulk tanks and grain were in the red). YTD net orders are up 40 percent, led by a 110 percent gain in reefers, while dry vans are up 33 percent,” says Frank Maly, director, CV transportation analysis and research at ACT Research.
He adds, “Although we expect trailer orders to be roughly one and a half times Class 8 tractor orders over the long-run, the three-month moving average of trailer orders has been declining since December, and slid below 1.0 in both July and August; that’s an indication of both fleet attitudes and their willingness to continue to invest in new equipment, with truck OEMs perhaps just a bit more willing to book longer-term commitments.”
Additionally, ACT notes in the report that the industry continues to experience inventory-related issues.
“Indications are that OEMs would have built more trailers but were limited by continuing component and material availability challenges,” says Maly. “Tires are frequently noted as a bottleneck, with undercarriage components and wheels continuing to be mentioned as well. Red-tags are also apparently continuing to occur, but less mention of them may indicate a bit less overall impact than in Q2. That said, we expect an attempt to clear some of those in the quarter-ending month of September.”
