A Surge in Trailer Orders Reflects Rosy Outlook for 2021 and Beyond
2020 was a tough year. The pandemic caused a lot of uncertainty in many aspects of life, including the trucking industry. However, we are hopeful because the outlook for the 2021/2022 market is positive.
The Effects of 2020
The pandemic led to a substantial deviation from “normal” trends in 2020. Though long-haul truckers continued to roll across the country, the pandemic still had an impact. Because many restaurants, hotels and casinos closed, there was less freight to haul; however, consumer demand went up at grocery stores. This caused a disconnect and all the uncertainty made it hard to figure out what to expect next.
A Positive Outlook for 2021
Despite the uncertainty in the beginning of 2020, there was a crucial point for the equipment markets. GDP goods transport was up 85% in the third quarter, more than making up for the losses in the first two quarters of the year. However, industrial production continues to lag. This disconnect was caused by the shift to growth in consumer goods and away from services. The switch in demand caused a disruption in the supply chain and we now find ourselves playing catch up.
Because of the need to catch up with the demand for consumer goods, many fleets are ordering their equipment for nearly the entire year. These orders are reflecting that positive outlook for 2021; however, this forecast is based on the current conditions of our new normal. This surge in trailer orders is rooted in our unique conditions. At some point, things will resolve and we may return to a more regular pattern. This means that 2021 will be a good year for transportation equipment, but not a record year. The test for the market will be mid-year.
Looking Ahead to an Even Better 2022
A return to normal market by the end of 2021 bodes very well for 2022. Next year is expected to be a near record year with demand continuing to go up, as long as the second half of this year reestablishes some balance. While we don’t exactly know what that balance may look like, the potential is there. Things will need to rebalance at a higher level than we’re expecting, but that means equipment will stay strong through 2021.
Nationwide is Here to Help
We are expecting a solid year for the trailer manufacturers. Backlogs are growing and that means there is a lot of equipment to move. We are here to help our valued customers relocate their dry vans and refrigerated trailers throughout North America. Our expert and dedicated team is here to help you keep your trailer pools balanced and moving. Our vast network of companies throughout North America also means we can help you move your trailers efficiently and at the best price possible.
We are committed to your success and aim to add as much value to the trucking industry as possible. Ready to move your trailers more efficiently? Contact us today and let us know how we can help you!