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Friday, July 19, 2024

Trailer Orders Fall

Trailer net orders fell 7 percent month over month and contracted a staggering 52 percent year over year, according to the most recent State of the Industry: U.S. Trailers published by ACT Research Co.

“June net orders were the lowest monthly volume since July 2012, amid weak Q2 fleet financial projections, lower freight rates and disappointing freight demand,” said Frank Maly, director of commercial vehicle transportation analysis and research at ACT. “Perceptions are that none of these factors will reverse course in the short to medium term, and this does not position the industry well for the remainder of the summer.”

He added that this is particularly a concern because seasonal patterns already label July and August as the weakest order months of the year.

“Increased production capacity, with multiple facilities coming on line, will challenge OEMs to balance that new capacity with possible fleet investment restraint,” Maly also noted. “Additional capacity and willingness to aggressively continue replacement programs will come under close evaluation.”