Trailer manufacturers continue to seek increased production rates, but are struggling to achieve targets according to a new report.
This quarter’s issue of ACT Research’s Trailer Components Report indicated that material and component supplies, as well as staffing issues, continued to generate headwinds for US trailer OEMs.
“There are some indications that staffing challenges may be easing slightly, and that the upcoming end of supplemental unemployment benefits could further improve workforce availability,” said Frank Maly, Director–CV Transportation Analysis and Research at ACT Research.
“That said, pricing and availability of components and materials are resulting in higher trailer prices and a build-up of red-tag units, with the volume of these units expected to continue growing during the upcoming months,” he said.
ACT Research’s U.S. New Trailer Components and Materials Forecast provides those in the trailer production supply chain, as well as those who invest in said suppliers and commodities, with forecast quantities of components and raw materials required to support the trailer forecast for the coming five years.
It includes near-term quarterly predictions for two years, while the latter three years of the forecast are shown in annual details. Additionally, analysis is segmented into two categories: those needed for the structural composition of new trailers and those used in the production of undercarriage assembly.
“Concerns about future availability and pricing are major factors in the unwillingness of OEMs to accept future orders, which is causing uncertainty about the timing of the ‘official’ opening of the 2022 orders,” said Maly.
“In turn, meaningful pent-up demand is occurring due to the reluctance to accept dry van and reefer orders at this time, with the average industry backlog-to-build ratio extending to the end of Q1’22, at June 2021 build rates.”
ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel.