Act Frank Maly Seminar 62

ACT: US Trailer OEMs challenged to increase production

March 4, 2021
Component constraints impacting build rates for reefer manufacturers, who are struggling to meet fleet demand

According to this quarter’s issue of ACT Research’s Trailer Components Report, trailer net orders have pushed the industry backlog higher for the past seven months, with January’s order level 66% above current build rates.

ACT Research’s U.S. New Trailer Components and Materials Forecast provides those in the trailer production supply chain, as well as those who invest in said 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.

“First of all, it is important to remember that trailer market strength is highly segmented,” said Frank Maly, director of commercial vehicle transportation analysis and research at ACT. “Dry vans and reefers have seen the majority of order volume in recent months, and those OEMs are struggling to increase production to meet surging fleet demand. Vocational trailer categories are not seeing the investment commitment occurring in the general freight and temperature-controlled segments.

“Large fleets continue to drive the market. Indications are that small and medium fleets continue to struggle to recover from the impact of the 2020 COVID-related market gyrations and are now being impacted by both driver shortages and scant new equipment availability.

“Discussions have indicated supply issues include castings, forgings, sheet metal, wood products and tires. Many of the vendors for these items, excluding wood, are seeing strong demand from the truck side of the CV market as well, and these limitations have tempered our forecasts.”

About the Author

Commercial Vehicle Staff

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