FTR reports preliminary trailer orders decline in July from final June numbers

FTR reports preliminary trailer orders fell back in July 28% from the final trailer orders reported for June to a total of 17,000 units. July 2022 trailer order activity was +101$ y/y with orders now totaling 275,000 units for the past twelve month.

OEMs still appear to be cautious about taking orders for next year’s build slots, however, the holding pattern does appear to be opening on a limited basis. Moderate improvements are being made month over month however supply chain conditions, rising material costs, and labor availability continue to remain inhibiting factors that are making it very difficult for manufacturers to increase build rates.

Charles Roth, Commercial Vehicle, Analyst for FTR commented “Amidst these uncertainties and production challenges, OEMs have continued to strategically manage backlog levels and maintain strong build rates. Under these conditions, order volumes are likely to improve in Q4 as OEMs begin filling their production schedules for 2023.”

“While trucking conditions have as of late suffered due to weaker market dynamics and increasing costs, overall demand for new equipment remains exceptional and is expected to remain strong as carriers are still in need of new equipment to supplement their replacement cycles.”