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May Trailer Orders Increase 12% From Last Year
U.S. trailer orders saw a year-over-year increase of 12% in May, rising to 6,600 units according to ACT Research. However, this figure represented a 26% decline compared to April, which is typical for the season. Despite the uptick compared to last year, experts express concern that the current order levels aren't sufficient to increase backlogs, particularly in light of rising cancellation rates.
Jennifer McNealy from ACT pointed out that subdued order intake and build levels are likely due to weak conditions in the for-hire truck market, high interest rates, and stable inventory levels among other factors. Charles Willmott of WillGo Transportation Consulting, with nearly 50 years in the industry, noted that the current situation mirrors only a few past instances, such as the Great Recession and the impacts of COVID-19. He highlighted the ongoing deep freight recession negatively affecting trailer sales, expecting a significant downturn in major manufacturers’ outputs for 2025 compared to 2024.
Willmott observed a slowdown in market activity and investment decisions, with many companies hesitant to make large purchases amid uncertainty surrounding tariffs, pricing, and the broader economy. Current trailer prices have returned to historical norms, around $30,000, after pandemic peaks, but utilization rates are declining, especially in rental and leasing sectors.
Overall, the transportation sector is in a period of cautious observation, with businesses prioritizing stability before making investment choices. This landscape highlights the pressing need for better clarity on market conditions and economic indicators to drive the industry forward. From an expert perspective, addressing the underlying issues contributing to market volatility—including interest rates and regulatory uncertainties—will be essential in promoting a more robust recovery in trailer production and sales.
Jennifer McNealy from ACT pointed out that subdued order intake and build levels are likely due to weak conditions in the for-hire truck market, high interest rates, and stable inventory levels among other factors. Charles Willmott of WillGo Transportation Consulting, with nearly 50 years in the industry, noted that the current situation mirrors only a few past instances, such as the Great Recession and the impacts of COVID-19. He highlighted the ongoing deep freight recession negatively affecting trailer sales, expecting a significant downturn in major manufacturers’ outputs for 2025 compared to 2024.
Willmott observed a slowdown in market activity and investment decisions, with many companies hesitant to make large purchases amid uncertainty surrounding tariffs, pricing, and the broader economy. Current trailer prices have returned to historical norms, around $30,000, after pandemic peaks, but utilization rates are declining, especially in rental and leasing sectors.
Overall, the transportation sector is in a period of cautious observation, with businesses prioritizing stability before making investment choices. This landscape highlights the pressing need for better clarity on market conditions and economic indicators to drive the industry forward. From an expert perspective, addressing the underlying issues contributing to market volatility—including interest rates and regulatory uncertainties—will be essential in promoting a more robust recovery in trailer production and sales.
Vehicle Guru