COLUMBUS, Ind. — Preliminary net trailer orders decreased nominally from February to March, according to the latest data from ACT Research.
At 13,600 units, orders also were lower compared to last March, down 24% year-over-year.
Seasonal adjustment (SA) at this point in the cycle leaves March’s tally essentially unchanged at 13,800 units.
Final March results will be available later this month.
This preliminary market estimate should be within +/-5% of the final order tally.
“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.
Meanwhile, net orders remain challenged by a backdrop of weak profitability for for-hire truckers,” McNealy noted.
“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,” she said. “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.”
For the trailer industry, this is compounded by the power-unit prebuy ahead of the Environmental Protection Agency’s implementation of 2027 regulations, the ACT study notes.
As a result, cancellations remain elevated, and the choice about how to spend limited capex dollars is swinging the pendulum against trailer purchases right now.
“While we remain cautiously optimistic and don’t believe this year will be catastrophic for the trailer markets in general, we note that 2024 thus far is matching expectations as a year of transition,” McNealy said. “While some specialty segments have no available build slots until late in 2024 at the earliest, the industry’s largest segments remain under pressure, and cancellations are anticipated to continue their oscillation into and out of elevator territory as dealers and fleets recalibrate their inventory and immediate needs.”
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.
