ACT: Trailer demand breaking through higher interest rates, weaker economy

A quarterly update to an ACT Research forecast sees trailer manufacturers and the supply chain for their products breaking through recent weak economic conditions and higher interest rates largely due to strong demand.

“Recent discussions indicate U.S. trailer OEM business conditions are on-par with September and seem to be getting better,” said Jennifer McNealy, director of commercial vehicle market research and publications at Columbus, Indiana-based ACT. “Demand remains healthy, cancellations are low, and material/component supply-chain constraints are narrowing. With the availability of 2023 build slots varying widely by OEM, complicated by already long backlogs, customers’ ability to place orders is limited.”

See also: Trailer orders surge in October

ACT’s U.S. New Trailer Components & Materials Forecast provides stakeholders in the trailer production supply chain, as well as those who invest in suppliers and commodities, with forecast quantities of components and raw materials required to support the trailer forecast for the coming five years. It includes near-term quarterly predictions for two years, while the latter three years of the forecast are shown in annual details. Additionally, analysis is segmented into two categories: those needed for the structural composition of new trailers and those used in the production of undercarriage assembly.

Regarding the impact of inflation on OEMs, McNealy added, “Difficulty in projecting part and material prices has made it tough for manufacturers to set firm prices for trailers currently on order. That said, most are re-pricing orders with customers as production is set to commence.”

In response to still-strong business conditions, she cautioned, “While we welcome improvements, reports from the field indicate that supply-chain constraints or tight labor markets are not a thing of the past just yet. We expect production levels to remain relatively constant in the near term.”