U.S. Trailer Net Orders for June Down 17% from May at 4,788 Units
FTR reports U.S. trailer net orders for June at 4,788 units, down 17% month-over-month (m/m) but up 44% from a June 2023 order level that was the lowest since at least 2013. The number of trailers ordered over the last 12 months now totals 199,600 units.
Orders were weaker than seasonal expectations and 71% below the monthly average order level for the last 12 months. Despite the large year-over-year (y/y) gain, June 2024’s net order total nearly tied May 2020 for the third lowest level in the data. This decrease was driven mainly by a substantial drop in gross orders, although cancellations as a share of gross orders remained above 30%.
Trailer production decreased by 7% m/m and 29% y/y in June, totaling an output of 20,249 units - 21% lower than the average June build level over the past five years.
With net orders coming in substantially below production levels, backlogs in June dropped, falling by 15,526 units to end at slightly more than 113,000 units. The larger m/m decrease in backlogs than in production resulted in a decrease of the backlog-to-build ratio to 5.6 months. This ratio is the second lowest level since 2020 and is slightly below the historical average prior to 2020. The current ratio indicates little overall incentive for trailer manufacturers to adjust production levels.
