Page 39 - April-May 2025

TRAILERTALK

FTR Reports U.S. Trailer Net Orders for March

Totaled 21,516 Units

March U.S. trailer net orders once again defied seasonal and market expectations, increasing 3% month-over-month (m/m) and 70% year-
over-year (y/y), totaling 21,516 units. March 2025 represented the fifth consecutive month with net orders exceeding 20,000 units and
positive y/y growth. However, a weak start to the 2025 order season (September 2024 through March 2025) kept cumulative net orders at
146,253 units — down 8% y/y and averaging 20,893 units per month.

Total trailer build in March increased 11% m/m — in line with seasonal expectations — to 17,611 units but decreased 26% y/y. The 2025
year-to-date trailer build fell 31% y/y to 46,218 units, an average of 15,406 per month. With total trailer net orders above production,
backlogs increased by 4,564 units (+4% m/m; -16% y/y) to 127,892 units for a fifth consecutive monthly increase. However, the larger m/m
increase in production compared to backlogs lowered the backlog/build ratio to 7.3 months.

Dan Moyer, senior analyst, commercial vehicles, commented, “Some fleets appear to be prioritizing adding trailers in lieu of power units.
So far this year, U.S. trailer net orders have outpaced total North America Class 8 net orders by 7,900 units. Given the increasing level of
uncertainty – the economy, tariffs, truck freight demand and pricing, etc. — it remains to be seen if this order strength can be sustained.

“Recently imposed U.S. tariffs, along with retaliatory measures, pose significant risks to the North American trailer market, influencing both
imported units and domestic production reliant on foreign-sourced materials. OEMs will likely face increased manufacturing costs, di-
minished margins, and possibly softened or stagnant demand. Suppliers, meanwhile, likely will experience intensified financial pressures
stemming from supply chain disruptions, potentially prompting shifts toward alternative sourcing strategies or domestic partnerships. For
fleets, higher prices and prolonged lead times may result in postponed procurement decisions or a renewed focus on upgrading power
units instead.”

GDP Decreased 0.3 Percent in Q1 2025 Import Prices up 0.9 Percent in March 2025
Import prices up
Real gross domestic product (GDP) decreased at an annual
0.9%, export prices
rate of 0.3% in the first quarter of 2025 (January, February, and
up 2.4% over the
March), according to the advance estimate released by the U.S.
year ended March
Bureau of Economic Analysis. In the fourth quarter of 2024,
2025
real GDP increased 2.4%.
From March 2024 to
The decrease in real GDP in the first quarter primarily
March 2025, prices
reflected an increase in imports, which are a subtraction
for U.S. imports
in the calculation of GDP, and a decrease in government
increased 0.9%, while
spending. These movements were partly offset by increases in
prices for exports
investment, consumer spending, and exports.
advanced 2.4%.
Compared to the fourth quarter, the downturn in real GDP in
Fuel import prices decreased 5.2% from March 2024 to March 2025, while
the first quarter reflected an upturn in imports, a deceleration
nonfuel import prices rose 1.5%. The price index for petroleum imports
in consumer spending, and a downturn in government
fell 6.7% over the past 12 months. Import natural gas prices decreased
spending that were partly offset by upturns in investment and
19.8% in March, the largest monthly decline since March 2024. Natural
exports.
gas prices rose 88.5% for the year ended in March.
Real final sales to private domestic purchasers, the sum of
Agricultural export prices rose 1.4% over the year, while non-agricultural
consumer spending and gross private fixed investment,
export prices rose 2.5%. Over the past year, higher prices for nuts and
increased 3.0% in the first quarter, compared with an increase
meat more than offset lower prices for soybeans.
of 2.9% in the fourth quarter.

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