Production of Class 8 vehicles recently slowed due to a shortage of semiconductors. But now, it appears the freight hauling industry will also be waiting for new trailers. Reports indicate that trailer orders are backlogged into 2022 as well.
“There aren’t any cancellations, just rolling of orders that will not complete this year. Some orders for this year rolled over into 2022 prior to starting to price early 2022 (trailers), so that does limit the number of new orders we can take,” Great Dane executive vice president of sales Chris Hammond reportedly said. “Fleets, especially in the dry van space, continue to order trailers after a weak spring order season. We also see more confidence from our distribution groups as they look to increase stock trailer orders for 2021 builds.”
The general public would expect trucking industry manufacturers to see business contraction given the supply chain logjams, worker shortage, and inflation. But despite higher-than-expected product costs and unemployment, freight hauling operations have posted big earnings. In addition, rising consumer demand and increased profitability have many outfits investing in their infrastructure. Supporting the expansion theory, September’s new trailer orders ranked as the third-most in a single month.
“There is expansion demand, replacement demand, dealer demand — just an enormous amount of demand for dry vans to keep consumer goods on the move,” FTR vice president of commercial vehicles Don Ake reportedly said. “Fleets are expecting the hot freight market to continue into 2021 and want to be prepared with adequate capacity.”
But like the tractor makers and freight carriers, trailer manufacturers are also unable to maximize their profit potential due to materials shortages. As a result, some outfits were effectively sidelines during the height of the pandemic. Others still struggle to secure the necessary materials and qualified workforce to fill trailer orders.
“A lot of items are a challenge,” Hammond reportedly said. “It seems everyone has components stuck in the supply chain somewhere. Every day the plants are working to get something to keep the lines running.”
Chicago-based Great Dane, with offices in Savannah, Georgia, operates 11 manufacturing facilities in the U.S. It produces a wide range of trucking products that include refrigeration and dry goods trailers, as well as truck bodies. As an industry leader, Great Dane is expected to invest more than $3.5 million and hire 200 people for its Pennsylvania plants to create a second shift.
Hyundai Translead, a San Diego-based trailer manufacturer, anticipates reaching its maximum number of orders relatively quickly and is booking deep into 2020.
“We have recently communicated available volumes available by product line for 2022 and have begun quoting,” Sean Kenney, Hyundai Translead chief sales officer, reportedly said. “We fully anticipate that 2022 will fill quickly to the levels we have been able to commit to for our customers and dealers.”
Sources: freightwaves.com, joc.com
the typo’s in this article are middle school caliber. great job
Demand is about to increase with the amount of inexperienced fools that will be causing pileup wrecks this coming winter, as a lot of equipment will need to be replaced.
Remember Chris, you, me and everyone else that drives or used to drive were one of those inexperienced ‘fools’ at one time. We all had to make our bones and made poor decisions at times. We learned, we improved. Let’s have a little patience with those beginning to climb the ladder.
Testify!