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WHILE COVID-19 HAS IMPACTED THE US ECONOMY – WHERE THE CONSEQUENCES ARE FAR REACHING AND HERALD AN UNPRECEDENTED SERIES OF CHALLENGES FOR NORTH AMERICA – TRAILER MANUFACTURERS, COMPONENT SUPPLIERS AND THE TRUCKING INDUSTRY AT LARGE ARE WORKING OVERTIME TO ENSURE GROWTH IN 2021.

Data analysis firm, ACT Research, is optimistic about the state of North America’s trailer manufacturing industry. June net US trailer orders of 13,441 units were, according to ACT Research’s latest trailer report, a significant improvement (333 per cent) from May’s very low comparison, arriving dramatically above June 2019’s level, up 112 per cent. Before accounting for cancellations, new orders of 16,000 units were up 117 per cent versus May and 41 per cent better year-over-year. “It is important to remember that those comparisons are to exceedingly low orders during the first part of this quarter, when widespread Covid lockdowns were in place,” said ACT Research Director–CV Transportation Analysis and Research, Frank Maly. “That said, the improved sequential comparisons do indicate some fleets, after assessing current market conditions, are beginning to cautiously commit to capital expenditures. “Discussions indicated that large fleet orders helped drive June results, meaning improvement is generally not spread evenly across all OEMs, and we expect that choppiness to continue as we move through the summer. “OEMs continue to seek order/build equilibrium, and while some fleets are willing to make investment commitments, most continue to remain on the sidelines, despite some negotiations occurring to help generate order volume.” North American OEM, JOST International, established a training and troubleshooting platform earlier this year to support its customers amid Covid-19. The company specialises in landing gear and fifth wheel product lines from its head office in Grand Haven, Michigan. Brian Moynihan of JOST International confirmed that overall demand for trailers remains very soft. “Right now, most fleets are taking a ‘wait and see’ position as they determine demand for new equipment. “Right now, trailer orders are off by 50 per cent. Many trailer OEMs closed operations at the beginning of the pandemic. Several were closed for multiple weeks. We still are seeing some major OEMs

OEMs continue to seek order/build equilibrium, and while some fleets are willing to make investment commitments, most continue to remain on the sidelines, despite some negotiations occurring to help generate order volume.

closing for periods of time. This is mainly to building and protecting their backlogs. In recent weeks the quote activity has been strong. Many of the large truck load carriers that were standing on the side lines are now starting to send out RFQs for new trailers for late 2020 and into 2021.”