COLUMBUS, IN – While clouds on the trailer market horizon bear watching, industry stakeholders “remain cautiously optimistic about 2024,” according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report.
“In addition to an improved longer-term outlook, nearer-term, general business conditions and material supply chains remain on par with July levels in the face of continued strong trailer output,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research.
“Supply-chain issues have essentially normalized, and OEMs continue to report smaller, more manageable and less impactful disruptions,” she added. “Build was 14% lower month-over-month, partly attributable to one less build day in July. As expected, production outpaced orders into July’s annual order trough, dropping trailer backlogs 15% year-over-year. Because large backlog declines are seasonal, and thanks to a lower build rate, the seasonally adjusted backlog-to-build ratio shed a modest 20 basis points to 6.9 months. The current backlog essentially commits the industry into the beginning of 2024.”
Regarding cancellations, McNealy said that fleet commitments improved in July but were still somewhat mixed. Total cancels dropped to 1.7% of backlog, following two months of elevated activity.
“Some OEMs have told us customers are cutting back on their anticipated order appetite for this year and next, with fewer customers remaining on the sidelines to pick up near-term build slots as they become available,” she said. “Clearly, the demand dynamic is shifting.”
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
