ACT Research: Preliminary net trailer orders in January continue softening trend

COLUMBUS, Ind. — January’s preliminary net trailer orders decreased nominally from December to January, ACT Research says.

At 13,700 units, orders were lower compared to last January, down nearly 43% year-over-year

As we’re still in peak order season, seasonal adjustment (SA) lowers January’s tally moderately to 12,400 units.

Final January results will be available later this month.

This preliminary market estimate should be within +/-5% of the final order tally, according to ACT.

“With the pent-up demand enjoyed by the industry during the past few years largely extinguished, a softer opening to 2024 meets expectations,” said Jennifer McNealy, director of market research and publications at ACT. Market Research & Publications at ACT Research.

Net orders are being challenged by a backdrop of weak profitability for for-hire truckers, and anecdotal commentary from trailer manufacturers throughout the past several months have been indicating this slowing, as they have shared that orders are coming but not at the same rapid pace that they have the last few years, McNealy added.

“This month’s results continue to support our thesis that when fleets don’t make money, their ability and/or willingness to purchase equipment is muted,” she said. “That said, the lower orders don’t indicate a catastrophic year in the offing, simply one that is on target to be less stellar than we’ve seen recently.”

Another indicator being watched closely is cancellations, which oscillated above comfortable levels for most segments in January.

While the industry’s largest segments are under pressure, some specialty segments have no available build slots until late in 2024 at the earliest, while others are in the three-month range.

John Worthen

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.