When truck orders for 2022 opened, the numbers soared as pent-up demand flowed in orders. With trailers for August, the same pattern still applies, but not to the same extent.
August 2021 Details
According to Freight Transportation Research (FTR), trailer orders hit 15,100 in August. This is a 79% increase from a disappointing July, but still a 47% drop from the red-hot August 2020. FTR says that the recent dearth of net trailer orders is a supply issue rather than a demand issue, and his explanation seems to ring true as trailer manufacturers open up slots for the following year and are reserved quickly.
“The disruptions in the supply chain have disrupted production in 2021 and are now delaying order placements in 2022. OEMs do not know when they will be able to ramp up production, so a tremendous amount of uncertainty exists,” Don Ake said. “The supply chain is expected to remain clogged for several more months and then improve at a gradual level throughout the first half of next year.“.
Despite the increase in orders, Ake predicts that the total pent-up demand has increased over the last month as manufacturers struggle to keep up.
“When OEMs begin booking at full throttle for 2022, there could be a record number of trailer orders for the month.”
Trailer orders have gone back to about average in the past few months, ending a streak of high sales numbers that lasted almost for a year straight. If what Don Ake said is true and the issue is production, the first law of economics states prices are going to rise. Is now the time to buy before prices get any higher, or is it worth waiting out the storm?
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