Preliminary net trailer orders rose slightly from May to June, but at 6,300 units, were lower compared to last June, down 19% year over year, according to ACT Research. Seasonal adjustment at this point in the cycle boosts June’s tally to 8,100 units. Final June results will be available later this month. This preliminary market estimate should be within ±5% of the final order tally.
“This month’s data show 26,000 trailers were ordered in Q2’24, a 14% contraction compared to the same quarter in 2023. June’s net orders bring the year-to-date tally to 74,500, a reduction of 23,900 units, or 24% lower, compared to the first half of last year,” Jennifer McNealy, director CV market research and publications at ACT Research, said. “This year’s slower trailer orders are no surprise given the elevated order velocity of the past few years, and with continuing weak for-hire truck market fundamentals, and already-filled dealer inventories, it looks like trailer demand is likely to remain constrained for some time. That said, it is important to remember that for orders, we are now in the weakest months of the annual cycle, minimally suggesting there is no catalyst for stronger orders before the fall and the OEMs’ opening of their 2025 order books.”
“While we do see fleets starting to make more money later this year, thereby increasing their ability to purchase equipment, the impact likely will be muted for the trailer industry, as we continue to expect their willingness to spend will lean toward the purchase of new power units ahead of the EPA’s implementation of 2027 regulations, which we believe has already begun,” McNealy said. “Industry anecdotes suggest that the ‘pause button’ is expected to remain pressed through the remainder of 2024. The industry’s largest segments remain under pressure, cancellations remain elevated as dealers and fleets recalibrate their needs, and external forces like the US presidential election, low used equipment prices and high interest rates add to uncertainly into the near- and medium-term.”
