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Trailer orders dive as manufacturers carefully manage order intake

October 19, 2022 Admin No Comments

Trailer orders dive as manufacturers carefully manage order intake

Trailer orders nosedived in September, according to preliminary data from FTR, dropping 25% from August levels and down 56% year over year.

Orders totaled 12,500 units, however, FTR notes manufacturers are still working through backlogs and are carefully managing production as component shortages continue to be an issue.

trailer order chart

“In the retail market, dealerships still can’t keep enough stock to meet demand,” said Charles Roth, FTR commercial vehicle analyst. “At the same time, large carriers haven’t been able to keep up with replacement cycles, which has driven the level of pent-up demand for new replacement units to above-average levels. While net orders have historically followed a seasonal pattern, the past two years have fundamentally changed how OEMs manage their build slots.”

FTR says trailer makers are less likely to book orders as far into the future as they used to.

“They are trying to avoid having to push orders back or finish units offline as this has impacted not only their operations but also their customers,” Roth explained. “The low order volumes could be viewed as OEMs filling in the 2023 build slots when they are confident they have the necessary visibility required to fulfill them.”

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