Supply Chain & Demand of Trailers Have Created a Holding Pattern

Trailer-bodybuilders.com (source) reports that according to FTR Intel and ACT Research, trailer order activity has been constrained since OEMs are not taking any new orders for 2021 delivery. However, vocational trailer orders were steady, as there are still open build slots in those segments. The industrial sectors of the economy recovered slower than the consumer side, delaying the demand for flatbeds and tank trailers.

“The market is in a holding pattern until ordering for 2022 shipments begins,” Don Ake, FTR vice president of commercial vehicles, commented. “Demand for trailers remains robust, as fleets attempt to move an increasing amount of freight during a shortage of Class 8 trucks. Fleet capacity is extremely tight. Trailer production is also constrained by supply chain disruptions and labor shortages.”

“Orders are expected to set records once the order boards for 2022 are opened,” Ake added. “Trailer demand is expected to be sturdy throughout next year. However, the actual demand for trailers will not be ascertainable until the supply chain problems dissipate. The production situation for early 2022 could be complicated if OEMs cannot build all the orders currently on the books in 2021.” Read the full article

This is causing U.S. manufacturers to think outside the box to help keep up with the demand while having a limited supply of materials. “We can’t finish jobs as this grows and grows. It’s closing businesses. The demand is there but the supplies aren’t. I told my team to search and we have had to get creative or make the process ourselves. We’re working for solutions. We have been able to hire new employees even during the added situation of workers shortage. But buckle up for a bumpy ride as as the market transitions.” – Mark Andol