Trailer builds
Trucking industry data aggregator heightens its expectations for OEM trailer builds next year, attributing its rosier prognosis to a higher-than-expected U.S. gross domestic product and more normalized supply chains. Trailer builders have their work cut out for them, according to industry researchers who project higher demand for 2024, despite July 2023 reflecting the weakest trailer order month of the year so far. Trucking industry data aggregator in its latest quarterly report on upcoming trailer builds, heightens its expectations for 2024 builds, however, attributing the bullish prognosis to a higher-than-expected U.S. gross domestic product and more normalized supply chains.
Builds from May to July totaled 81,700, a 7% increase year-over-year, though net orders of 26,300 trailers were 58% lower than the same period in 2022. As part of our recent trailer-maker survey, we asked about 2024 orderbook openings and dealer inventory levels,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT.
It appears that about 35% of the industry’s Q1’24 books have opened, with limited slots available beyond that. Regarding dealer inventories, answers were product-dependent, with generalist trailer levels higher than specialty trailer inventory levels. The number of trailers built last month dropped 14% compared to June, but production still outpaced orders due to an expected decline, resulting in a 15% reduction in trailer backlogs.
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. Clearly, the demand dynamic is shifting.
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