ACT Research: Trailer Supply Constraints Easing, But Not Completely Gone

According to this quarter’s issue of ACT Research’s Trailer Components & Raw Materials Forecast, recent weak economic numbers and higher interest rates do not seem to have impacted the commercial vehicle (CV) sector in any meaningful form. Demand remains strong.

ACT Research’s U.S. New Trailer Components & Materials Forecast provides those in the trailer production supply chain, as well as those who invest in said suppliers and commodities, with forecast quantities of components and raw materials required to support the trailer forecast for the coming five years. It includes near-term quarterly predictions for two years, while the latter three years of the forecast are shown in annual details. Additionally, analysis is segmented into two categories: those needed for the structural composition of new trailers and those used in the production of undercarriage assembly.

“Recent discussions indicate US trailer OEM business conditions are on-par with September and seem to be getting better,” said Jennifer McNealy, Director-CV Market Research & Publications at ACT Research. She added, “Demand remains healthy, cancellations are low, and material/component supply-chain constraints are narrowing. With the availability of 2023 build slots varying widely by OEM, complicated by already long backlogs, customers’ ability to place orders is limited.”

Regarding the impact of inflation on OEMs, McNealy added, “Difficulty in projecting part and material prices has made it tough for manufacturers to set firm prices for trailers currently on order. That said, most are re-pricing orders with customers as production is set to commence.” In response to still-strong business conditions, she cautioned, “While we welcome improvements, reports from the field indicate that supply-chain constraints or tight labor markets are not a thing of the past just yet. We expect production levels to remain relatively constant in the near term.”

ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis, and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.

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