TRAILER

Trailer trade analyst CLEAR International has updated its forecasts for the European Truck Trailer Market.

Since the last report in May, most West European countries have had their forecasts for 2021 economic growth upgraded again. However the improvements in the 2021 outlook are modest. Similarly, the outlook for new trailer demand has also improved especially for 2021/22, but again the changes to the forecast for the region as a whole are small, though some countries will see significant changes. Given the massive disruption to the economies of Europe in 2020 and the first half of 2021, the outlook for trailer registrations is relatively positive. In 2022 trailer demand will be similar to the level of 2016, but still well short of the cyclical peaks of 2007 and 2018.

On the assumption that further new waves of Covid-19 are kept under control CLEAR envisages 11.3% growth in trailer demand in 2021. However, this and further growth in 2022 will not be sufficient to recover the sales lost in 2020 – it will be several years before we see a return to the levels of trailer demand witnessed in 2018.

Production of trailers was at the third highest level on record in 2018 (though well short of the 2007 figure). Therefore, before Covid-19, the industry was achieving both high levels of output and stability. The total fall in registrations from 2018 to 2020 was 23% and the fall in production was 32%, partly due to a large fall in German trailer exports.

These percentage falls in 2019/20 were approximately half of the figures witnessed in 2008/09 (in percentage terms). Also, the bounce back - which is forecast to take only two years this time around - took six years following the 2009 GFC (global financial crisis). The trailer parc (fleet size) grew by only 0.2% in 2020. It will grow by less than 1% in the three years that follow.

The trade in goods data for 2020 was surprising. Trade was down 24% in Q2 2020 but down only 3% in Q4 2020. This was despite difficulties in moving goods between the UK and the EU as a result of Brexit. For the year trade was down 10%. However, trade in Q2 2021 set a new record.

The forecast period from 2021 to 2025 will be a period of declining replacement demand for trailers as a result of low registrations in the 2009 to 2014 period. Therefore, the forecast growth in trailer demand will call for significant levels of investment in new trailers over and above the replacement level.

Outlook for the West European trailer market improves

SDC continues investment in Ireland Parts depots

SDC Truck & Trailer Parts, a leading supplier of Commercial Vehicle Parts, has put in place an investment plan which aims to enhance its well-established Parts operations across Ireland. An upgrade to its I.T. systems and central warehouse stock will be rolled out across all branches over the next six months.

Commenting on the developments at the Toomebridge, County Antrim headquartered company, Director Gavin Diamond said: “The efficiency and accuracy of our operations is central to providing the best customer service in the marketplace. Over the coming months we will introduce these investments into our existing branches in Dublin, Wexford and Cork, and look at other opportunities so that both new and existing customers get the reliable service they expect from SDC; Quality, Service and Competitive Price.”

“2022 will be an exciting year to roll out our investment plans as we also look to expand our team, with the creation of new job roles at a strong Parts company.”

Gavin continued: “Out of our 60+ Parts employees, 96% of our team have gained their first experience of Commercial Vehicles with SDC and have taken all the opportunities to grow within SDC Truck & Trailer Parts. We have an enviable market position and can offer rewarding career paths for individuals who are willing to learn.”