Like their truck counterparts, trailer orders were steady last month as production capacity and supply chain issues continue to limit how many units can be ordered and assembled each month.
FTR reports February preliminary trailer orders held steady at 24,600 units, down 5 percent month over month and 4 percent year over year. ACT Research pegged the month slightly stronger at 26,500 orders, down 0.7 percent from January and 3.9 percent year over year. FTR adds trailer orders have totaled 242,000 over the past year — with the last six months steadily averaging nearly 25,700 units. ACT Research says its data shows the market averaging 26,600 trailers per month since November.
FTR adds bookings have exceeded production by about 3,000 units a month for six months, allowing backlogs to increase modestly.
"The tight holding pattern in the industry continues. OEMs are reluctant to book more orders when the supply chain is still clogged," says Don Ake, FTR vice president of commercial vehicles. "The commercial trailer industry is the most stable it’s ever been. OEMs will increase production as soon as they can get more parts, components, and workers. When this finally breaks loose, order volumes will jump substantially."
"Supply-chain and staffing headwinds continue to challenge OEMs in their efforts to increase output to meet extremely strong fleet equipment demands,” adds Frank Maly, director, commercial vehicle transportation analysis and Research, ACT Research. "Initial projections indicate that the supply chain has allowed OEMs to build at a hard-fought consistent rate over the last three to four months. Expect this to continue in the short-term, as the supply chain begins to adjust to underlying demand."
But Ake also notes tremendous demand for new trailers only continues to grow.
"Some previous retired trailers that were being used for storage or drayage are now being refurbished and returned to active duty. Freight growth continues in all segments, so every month the need for trailers intensifies," he says.
