U.S. Trailer Industry Opens Second Half of 2018 at Torrid Pace, Up 102% YoY

Hold onto your hats and your sunglasses: At more than twice the level of last July and the strongest July in industry history, more than 29,000 net orders were booked in July 2018 — this according to ACT Research.

“Despite the historically strong year-over-year showing, month-over-month performance was a bit different, with five of the ten trailer categories in the black and weaker performance concentrated in the vocational segment,” said Frank Maly, Director–CV Transportation Analysis and Research at ACT Research.

Maly continued, “Seasonals call for a sequential decline in production, and July results were directionally correct. However, results were weaker than anticipated since we expected volume to beat normal seasonals, given the strong support from backlogs.” He explained, “We continue to hear comments regarding component challenges as well as labor issues; inability to hire is not only a driver situation.”

Additionally, the report noted that the industry is experiencing inventory-related issues.

Maly commented, “There are two phenomena presently impacting trailer inventory: red-tags and completed trailers.” Some completed trailers are not being removed from inventory because fleets don’t have the available drivers to get them, opting instead to keep all available drivers in revenue-generating operations. Red-tags are those in a “work-in-process” category, not officially classified as inventory but very close to it; many in this limbo because of component supply issues. He concluded, “Slow retrieval of completed trailers is likely a continuing issue, but red-tags may have actually softened some of that impact.”

Category: Cab, Trailer & Body New, General Update, News