Trailer Sales Drop for Slow Season in January 2023
Life has some universal truths. We will all die one day, the sun is very hot, and the month after the holidays tends to cause a lull in the trucking industry. In regards to trailer orders, 2023’s first month of the year was not an exception to the rule. ACT Research has the numbers!
January 2023 Details
Trailer sales were 24,300 for January 2023. This is a 58% decline from the month prior (57,300 orders), one of the strongest months for trailer sales that ACT Research has ever recorded. Comparing apples to apples, the year-over-year change was a drop of 9% (26,595).
What caused the decrease when comparing January to January? Jennifer McNealy, director of commercial vehicle market research at ACT Research, points the finger at everyone’s favorite culprit: supply chain shortages.
“Build-per-day decreased from the previous month’s unit-per-day rate. OEM conversations continue to suggest supply chain constraints, including labor, are likely to remain a limiting factor to production in 2023.”
Does this mean we will see a repeat of the previous few years, where both new and used trailers skyrocket in price as fleets clamor to get their hands on these assets? This is unlikely, considering the recent run of trailer sales lowering demand.
In additional news, ACT Research reports that the backlog-to-build ratio is currently at approximately ten months, meaning that by the time you read this, orders will start being taken for 2024. You might want to place your order now!
Conclusion
As with December 2022’s explosive month of trailer orders, any excess demand that was not met in January due to supply chain issues will be carried over to the next month, and the month after that, until trailer manufacturers can keep up with the rate fleets are purchasing them.
If you are in the market for a new or used trailer or truck, TopMark Funding may be able to help you by leveraging our network of various funders to get you a deal based upon your credit, whether it is perfect or less-than-perfect! Read on below for more information on how we can help your trucking business grow.
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