An inside view of a Utility Trailer with Schmitz Cargobull North America three way partnership. (Utility Trailer Manufacturing Co.)
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U.S. trailer orders continued to development beneath the earlier yr in February after a short-lived however robust uptick the earlier month, ACT Analysis reported.
Preliminary web information confirmed orders decreased 14% yr over yr to 18,000 models. That additionally marked a 17% decline from January. Seasonally adjusted outcomes at this level within the annual order cycle lowered the overall to 17,000 models. ACT Analysis had anticipated the sequential drop in web orders because the trade is shifting towards the weaker order months of the annual consumption cycle.
“From that perspective, February didn’t disappoint,” mentioned Jennifer McNealy, director of business automobile market analysis at ACT. “It’s additionally no shock that information are decrease than the February 2024 consumption, given the uncertainty at present plaguing the U.S. business automobile trade and the financial system at massive.”
McNealy cautioned that orders are anticipated to be positioned at a subdued stage all through 2025. That’s regardless of the paradox that continues to assist the trailer market pause for the previous yr, she famous, made worse by the coverage shifting of the previous few months.
However, this didn’t shift her expectations as a result of weaker for-hire truck market fundamentals, low used gear valuations, comparatively full vendor inventories and excessive rates of interest.
„I do suppose the upcoming tariffs have gotten everyone very nervous, and so, I count on that our orders are going to begin to drop,“ mentioned Utility Trailer’s Steve Bennett, proven at TMC’s annual assembly in Nashville, Tenn. (John Sommers II for Transport Subjects)
“February got here in fairly robust on all merchandise,” mentioned Steve Bennett, president and chief working officer at Utility Trailer Manufacturing Co. “In order that was nice. I do suppose the upcoming tariffs have gotten everyone very nervous, and so, I count on that our orders are going to begin to drop. So it hasn’t occurred but, however I’m completely anticipating it.”
[March State of the Industry: U.S. Trailers Preliminary Update] – Preliminary Internet Trailer Orders in February Decrease M/M and Y/Y
Learn extra from the preliminary replace right here: https://t.co/TqnWjPWXFt pic.twitter.com/xSWZNkf4pD
— ACT Analysis (@actresearch) March 18, 2025
Utility Trailer reported robust order exercise for the month at greater than 4,500 reefers, dry vans and flatbeds. This was in line with the earlier month and up 30% yr over yr. Bennett expects orders to sluggish as prices improve as a result of newly applied tariffs and duties. The implementation of those tariffs is also leading to increased costs for essential supplies comparable to each home and imported metal and aluminum.
“From Jan. 2, after we did our normal pricing, to in the present day, metal and chrome steel are up a full 30%,” Bennett mentioned. “That’s a reasonably large influence. I feel that’s why a variety of our distributors are pushing ahead surcharges and form of speedy worth will increase.”
Utility Trailer additionally has unveiled an replace to its trailer telematics platform to assist prospects higher navigate the market. Utility TrailerConnect is being expanded with a brand new primary choice alongside its legacy professional model. It additionally launched a brand new retrofit program that enables present trailers to be up to date with this answer.
“Surprisingly, we haven’t seen an enormous downturn, and actually we’ve seen some good features and new enterprise and new progress,” mentioned Brandon Lairsen, vice chairman of trailer leasing at Transport Enterprise Leasing. “A few of that has been extra within the works over an extended interval and has lastly began shaking out or coming to fruition, in order that’s been encouraging.
“We’re nonetheless persevering with to see our idle fleet of trailers shrink to the quantity that we’re focusing on from a funds perspective and making good headway to that finish in what continues to be a really tough trailer market, or a really tender trailer market.”
Lairsen identified that the primary two months of the yr traditionally have been sluggish for the trailer leasing area. A lot of that has to do with there being a surplus of corporations attempting to shed their trailers as soon as the vacation delivery season is over. These situations don’t have a tendency to begin bettering till the sector will get previous early March.
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“We’re seeing costs of trailers proceed to come back down,” Lairsen mentioned. “The hole between retail and wholesale is constant to shrink, and I feel that’s simply nonetheless proof or fallout from the huge inflow of capability post-COVID.”
Lairsen suspects it may take one other 12 to 18 months earlier than capability reaches a fascinating equilibrium. He famous that a part of that is because of ongoing headwinds such because the cyclical enterprise atmosphere and the extended freight recession. However now there are new challenges, together with the continuing tariff threats inflicting uncertainty within the markets.
“It’s bought lots of people on the sidelines and holding off to make selections,” Lairsen mentioned. “It stays to be seen how this shakes out. However initially, I assumed, there was some saber-rattling there, and the longer this goes on, I feel that the president is severe about short-term ache for long-term change and bringing manufacturing again into the USA. For that purpose, I feel it’s going to have a reasonably detrimental influence on our enterprise.”
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