According to ACT Research’s U.S. Trailer Report for July, there were more than 29,000 net orders booked in the month, making it the strongest July on record. The report confirmed preliminary estimates from ACT Research, as every trailer category was in the black year-over-year, with dry vans and reefers posting some of the strongest gains.
“Despite the historically strong year-over-year showing, month-over-month performance was a bit different, with five of the 10 trailer categories in the black and weaker performance concentrated in the vocational segment,” Frank Maly, director–CV Transportation Analysis and Research at ACT Research, said. “Seasonals call for a sequential decline in production, and July results were directionally correct. However, results were weaker than anticipated since we expected volume to beat normal seasonals, given the strong support from backlogs. We continue to hear comments regarding component challenges as well as labor issues; inability to hire is not only a driver situation.”
Additionally, the report noted that the industry is experiencing inventory-related issues.
“There are two phenomena presently impacting trailer inventory: red-tags and completed trailers,” Maly said. “Slow retrieval of completed trailers is likely a continuing issue, but red-tags may have actually softened some of that impact.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!