COLUMBUS, Ind. — February’s preliminary net trailer orders increased nominally from January to February, according to ACT Research.
At 20,500 units, orders were lower compared to last February, down nearly 21% year-over-year. As we’re at the end of peak order season, seasonal adjustment lowers February’s tally modestly, to 20,100 units.
Final February results will be available later this month.
This preliminary market estimate should be within +/-5% of the final order tally, an act news release notes.
“Against year-ago data still impacted by pent-up demand that is now gone, softer order intake activity continues to meet expectations,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. “Net orders remain challenged by a backdrop of weak profitability for for-hire truckers. Anecdotal commentary from trailer manufacturers and suppliers through the past several months have indicated this slowing, as they have shared that orders are coming, but at a more tepid pace when compared to the last few years.”
McNealy said that the thesis is that when fleets don’t make money, their ability and/or willingness to purchase equipment is muted.
“That said, the lower orders now don’t indicate a catastrophic year in the offing, as the economy continues to expand at an above-trend rate in Q1, and goods-producing economic sectors that were out of favor last year are looking healthier in 2024,” McNealy added.
Another indicator ACT officials say they are watching closely is cancellations, which remained above comfortable levels for most segments in February.
“While the industry’s largest segments remain under pressure, some specialty segments have no available build slots until late in 2024 at the earliest and cancellations remain low,” McNealy concluded.
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.
