COLUMBUS, Ind. – Preliminary net trailer orders dropped nominally from April to May, and at 6,000 units, were lower compared to last May, down 46% year-over-year.
This is according to ACT Research’s latest report U.S. trailer market report.
Seasonal adjustment (SA) at this point in the cycle boosts May’s tally to 7,100 units, according to an ACT news release.
Final May results will be available later this month.
This preliminary market estimate should be within ±5% of the final order tally, the news release notes.
“A year ago, we knew that with pent-up demand beginning to wane and supply-chain congestion, for the most part, cleared, 2024 order activity would be slower compared to 2023,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. “With continuing weak for-hire truck market fundamentals, and already-filled dealer inventories, it looks like trailer demand will remain restrained for some time. For orders, we are now in the weaker months of the annual cycle, suggesting that there is no catalyst for stronger orders until the fall and the opening of 2025 orders.”
McNealy said that while it’s expected that fleets will begin making more money later this year, thereby increasing their ability to purchase equipment, the impact likely will be muted for the trailer industry “as we continue to expect their willingness to spend will lean toward the purchase of new power units ahead of the EPA’s implementation of 2027 regulations, which we believe has already begun.”
“Industry anecdotes suggest that the ‘pause button’ is expected to remain pressed in 2024,” she added. “The industry’s largest segments remain under pressure, cancellations remain elevated as dealers and fleets recalibrate their needs, and external forces like the US presidential election and interest rates remain on the closely watched list.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
