The impact of COVID-19 on global supply chains cannot be overstated. As our economy picks up, we are still seeing the lingering effects. Automotive industry executives noted that supply and demand had not been this out of balance in decades.
Refrigerated trailer production's current challenges echo those of car manufacturers. The demand for reefer trailers is high, but the rate of production is unequal to the task. Trailer manufacturers are struggling to receive sufficient materials and components, and their order volume exceeds available resources.
Dry vans and refrigerated trailers are particularly vulnerable to the shortage of components. ACT Research reported that in January 2021, trailer orders exceeded production capacity by 66%. The scarcity of available components is driving prices higher and making it difficult for manufacturers to reliably forecast production costs.
With components and labor as limiting factors, industry professionals forecast continued uncertainty. Buyers should anticipate long lead times from order to delivery. Now more than ever, leasing a refrigerated trailer may be the more cost-effective and expedient option.
