Report shows trailer demand rolling into 2023

This quarter’s issue of ACT Research’s Trailer Components Report has shown a high demand in trailer supply, with new orders stretching into next year.

With only a portion of the 2023 US trailer orderboards open and 2022 production slots full, backlog-to-build ratios have already stretched well into 2023.

ACT Research Director-CV Market Research & Publications, Jennifer McNealy, said that until orderboards are opened deeper into next year, the company expects orders and production to travel in lockstep.

“That said, demand remains strong, despite increased pricing, and cancellations, although ticking upward, are insignificant, as fleets in queue need the equipment and plan to stay in queue until orders are converted to deliveries,” she said.

“When more 2023 production slots become available, we anticipate a surge of orders to be ‘officially’ accepted.”

ACT Research Vice President, Senior Analyst, Eric Crawford, said that although demand remains strong, the company is forecasting a mild recession.

“Inflation continues to impact OEMs. Difficulty in projecting part and material prices has made it difficult for manufacturers to set firm prices for trailers currently on order,” he said.

“With supply and demand out of sync, and expected to remain there for the near-to-medium term, there is little incentive for a fleet to leave the order board when they already have a committed production slot.

“While build slot and pricing might not be as firm as fleets would prefer, it’s better than being on the outside looking in.”

ACT Research’s U.S. New Trailer Components and Materials Forecast provides the trailer production supply chain with forecast quantities of components and raw materials required to support forecasts for the coming five years.

In other news, The latest report from ACT Research shows a decline in trailer orders during the last month but a huge increase year-on-year (YOY).

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