U.S. trailer industry increases build rate in February

U.S. trailer industry increases build rate in February

OEM conversations continue to suggest supply-chain constraints are likely to remain a limiting factor to production in 2023.

Reflecting a higher build rate, the backlog-to-build ratio contracted to 8.5 months in February, after closing January at 9.9 months. For context, the average since Q3’21 has been in the 8-month neighborhood, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report.

US-Trailer-Industry-Increases-Build-Rate-Feb-600

“With most categories showing a higher build in February, backlogs slid slightly, down 0.5% sequentially (but +23% y/y). The dry van backlog was 0.4% lower m/m, with reefers down 0.6%, and flats nearly 4% lower compared to January,” said Jennifer McNealy, director, CV market research and publications, ACT Research. “Despite OEMs expanding availability, 2023 is not yet fully open, partially because manufacturers are facing volatile commodity costs, long lead times for some input components, and improving but still challenging labor considerations. OEMs are reluctant to overpromise and underdeliver on both price and timing.

“Demand overall remains robust, but some OEMs shared this month that conversations of softening are happening. That said, the same manufacturers indicated the talk has not yet turned into slowing orders or cancellations,” she added. “Other OEMs told us they are seeing a few actual cancellations, but the cancel data is primarily a reflection of spec changes and plant rewrites. Some smaller fleets and owner-operators have canceled orders, but large fleets remain eager to fill the void. OEM conversations also continue to suggest supply-chain constraints are likely to remain a limiting factor to production in 2023, with manufacturers mentioning a renewed fluctuation in materials costs, particularly steel, and continuing long lead times of some components.”

You May Also Like

Range Energy receives $23.5M in new financing for electric trailers

This recent funding follows the company’s $8M seed round from November 2022, bringing total funding to $31.5M.

Range-energy-trailer

Range Energy announced a $23.5 million new financing round led by Trousdale Ventures and with participation from UP.Partners, R7, and Yamaha Motor Ventures. Range says it will use the money to expand customer pilot programs for its electric-powered trailers, as well trailer production. Additionally, Range says it is also working to develop a new trailer data and telematics platform. 

MEMA responds to finalized EPA Phase 3 standards

MEMA and its members welcome the EPA’s final rule for Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles.

Mema-the-vehicle-suppliers-association-epa-phase-3-emissions-heavy-duty
The search is on: Returning initiative to reward military veteran driver with Kenworth T680

The competition is searching for America’s top rookie military veteran driver, who transitioned into trucking after military service.

Kenworth-T680-donated-transition-trucking-military-veterans
Full Truck Alliance releases 2023 fiscal report

FTA says y/y net revenues and fulfilled orders were up considerably, while its net income more than quadrupled from 2022.

transprotation-market-generic
NACFE: natural gas sits in ‘messy middle’

The organization believes RNG to be a good fuel for fleets looking to decarbonize now, but expects some companies may hold out for BEVs.

NACFE-Natrual-Gas-Confidence-Report-Cover

Other Posts

S&P Global Mobility: U.S. commercial truck market beat expectations

According to new CV registrations in 2023, 45% of upfitted vehicles are being used as service/utility vehicles, or as dry freight vans.

Generic-commercial-vehicle-market-data-sp-global-mobility-upfitting
Last Peterbilt Model 389 raises $1.5M for charity, so far

Peterbilt and Rush Truck Centers split $1.5M between two charities, the last Model 389 is now part of a sweepstakes which will benefit a third.

Peterbilt-Rush-Truck-Centers-last-model-389-donation
Volvo, Westport joint venture to reduce long haul CO2 emissions

The companies anticipate that the joint venture will become operational in Q2 of 2024.

westport-logo-volvo-reducing-carbon-dioxide-co2-emissions
EPA finalizes Phase 3, slows stringency before MY 2032

The new emissions standards are expected to improve public health and air quality, while giving companies enough lead time to meet the goals.

EPA-emissions-trucking-generic