With 2023 finally here, data from the end of 2022 is making the rounds, and it looks like trailer orders are heading in the right direction. FTR, the notable transportation intelligence organization, has reported that nearly 57,000 trailer orders were processed in December 2022. This represents a record not seen since October 2020. Interestingly, the numbers for December 2022 actually represent a decrease of 8% compared to orders for November of that same year, but an overall year-over-year increase of 17%.
What Do These Numbers Mean for 2023?
Despite the surge in orders seen in December, FTR representatives have stated that they don’t believe the uptick will continue at the same pace going forward. 347,000 orders were placed in 2022, and the backlog for trailer orders is the highest its been since 2020. Even if the pace seen in December doesn’t continue on the same trajectory, it’s believed that 2023 will be a positive year for the trailer market.
Something else to consider in this data is the change taking place in retail. Online ordering hit highs during the peak of the pandemic, but shoppers are returning to brick-and-mortar stores in large numbers. Additionally, the direct-to-consumer model has taken a hit over the past year as pandemic restrictions have faded into the background. All of this means that a shift is currently underway in how goods get from manufacturers to customers. This shift may represent a need for more trailers, further tightening the market for interested buyers.
Supply Chain Concerns Continue to Haunt the Background
Although the biggest challenges of the supply chain crisis of the Covid years have been largely put behind the trailer market, this doesn’t mean that buyers and manufacturers are out of the woods just yet. Aftershocks and smaller bottlenecks continue to play a part in delays around the world, and the United States is no different. Short-term improvements may not be on the horizon, but long-term solutions continue to be developed.
If you’re planning to put in a trailer order soon, be prepared to wait. With the backlog of orders continuing to be worked on, it may be a while. With that said, this largely depends on the trailer manufacturer. You’re encouraged to shop around to find the right balance between a manufacturer you want to partner with and a timeline your trucking company can work with.
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