ACT Research: Supply Chain Challenged but Improving, as US Trailer Build Slots Rapidly Filling for 2022, Negotiations for 2023 Well Underway

According to this quarter’s issue of ACT Research’s Trailer Components Report, the US trailer OEMs are rapidly filling available 2022 production slots, with both dry van and reefer build-to-backlog stretching deep into December.

ACT Research’s U.S. New Trailer Components and 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.

“Overall, we expect orders and production to travel in lockstep until 2023 orderboards officially open,” said Frank Maly, Director–CV Transportation Analysis and Research at ACT Research. He continued, “We expect backlog to contract as we move through late spring and early summer, but the yet-to-be-determined date for opening the 2023 orderboards will reverse the backlog contraction and likely quickly extend the backlog well into next year.” Maly added, “While OEMs continue to negotiate with fleets, that effort is building a large group of staged/planned orders that are not yet officially posted to the backlog. Once OEMs gain sufficient confidence in their supply chain and labor availability to open 2023 production slots, expect a surge of orders to be ‘officially’ accepted.”

He also noted, “OEMs continue to very closely control order acceptance. Their efforts border on order allocation, with discussions indicating that larger fleets might be getting better reception by the OEMs than the small and medium fleets and dealers. Component and material challenges are certainly a driving force, as are staffing issues, but less so than in the previous quarter. There was some supply chain relief that occurred at the end of the first quarter. While we would expect that to continue during the next few quarters, progress will still likely be a bit choppy.”

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.

ACT’s 67th Seminar is scheduled for August 23-25, 2022. The focus will be the potential impact of decarbonization and autonomous technology on commercial vehicles and on-highway transportation. Each event ACT shares its best-in-class data and forecast in presentations, as well as featuring guest speakers to dive into topics of interest for the benefit of attendees. The agenda includes key industry leaders, who will be announced at a later date. For more information about Seminar 67 Watts Under The Hood: Transportation Transformation, click here: https://www.actresearch.net/seminar-67/.

ACT Research recently completed POWER UP, a look at 7 global regions and more than 20 countries in a review of local regulations, infrastructure, and the impact on the adoption of battery and fuel cell electric commercial vehicles through 2040. This forecast is the first of its kind, a review of the decarbonization of commercial vehicles around the world. POWER UP is available now at https://www.actresearch.net/power-up/.

Additionally, ACT Research published an update to CHARGING FORWARD, a North American-centric battery and fuel cell electric vehicle adoption rate forecast, covering 23 vehicle applications, in Classes 4-8 commercial vehicles, through 2040. CHARGING FORWARD is considered by many industry leaders to be the apex of analysis and economic-based total cost of ownership modeling in the industry. And, it is now available for purchase at https://www.actresearch.net/electric-vehicles-charge/.

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