Provide-Chain Snarls Hit Manufacturing of Trailers Wanted to Haul Items

Lafayette, Ind.-based tools maker

Wabash Nationwide Corp.

expects to supply about 25% fewer trailers this yr than it did earlier than the pandemic due to shortages of every little thing from foam insulation to suspension parts and taillight wiring.

Chief Monetary Officer

Mike Pettit

stated demand is the very best it has been within the firm’s historical past, serving to drive Wabash’s backlog of orders for trailers and another merchandise as much as $1.9 billion as of Sept. 30. The corporate is passing alongside to its prospects increased prices for supplies resembling metal, which he stated has quadrupled in value between a low level in August 2020 and the third quarter of 2021.

The manufacturing unit backups are driving down U.S. trailer orders as transportation tools producers put a lid on gross sales as a result of their manufacturing slots are crammed deep into 2022. The variety of October orders plunged about 69% in contrast with the identical month in 2020, when trucking corporations had been racing to develop capability because the U.S. financial system emerged from pandemic lockdowns, in response to ACT. Trucking fleets ordered about 17,400 trailers from U.S. producers in October, down greater than 38% from September.

“That’s not as a result of the fleets don’t wish to purchase trailers or place orders,” stated

Frank Maly,

ACT’s director of business car transportation evaluation and analysis. “It’s as a result of the producers at this level are very hesitant to just accept further orders.”

Wabash’s Mr. Pettit stated the producer is “being selective” and giving precedence to its high prospects. “The market dynamics are such that turning down orders is required from each producer, Wabash included,” he wrote in an emailed assertion.

The shortage of latest trailers is slowing the move of products and contributing to increased trucking charges for retailers and different shippers, stated Don Ake, vp of business automobiles at freight business analysis agency FTR. Many older trailers are additionally idle, Mr. Ake added, due to an absence of alternative components.

Sauk Centre, Minn.-based Felling Trailers Inc.’s backlog is “4 instances the scale it’s ever been, previous to 2021,” stated Pat Jennissen, the corporate’s vp of gross sales and advertising. The maker of flatbed trailers briefly shut down manufacturing in July because it awaited delayed supplies and now could be holding twice as a lot stock because it usually would, amassing inventory of things resembling tires to protect towards future shortages.

Bob Wahlin, chief govt of Stoughton Trailers LLC, stated labor shortages are curbing output for the Stoughton, Wis.-based firm and for its suppliers, regardless of efforts to draw staff by elevating pay and advantages.

“It appears no one is ready to produce as a lot as they’d like proper now,” Mr. Wahlin stated. “They simply can’t get the folks.”

Gear makers say the backlogs are irritating prospects attempting to refurbish their fleets. The trailer shortfall comes as shortages of semiconductors and different components are curbing manufacturing of industrial quality vans.

Omaha, Neb.-based truckload provider

Werner Enterprises Inc.

obtained fewer vans and trailers than anticipated within the third quarter as part shortages minimize into producers’ potential to fulfill demand, executives stated in an Oct. 28 earnings name.

Producers “are more and more challenged to fulfill present demand ranges with shortages of semiconductor chips, uncooked supplies, parts components and labor,” stated Werner Chief Govt

Derek Leathers

through the name. “We count on this business development will proceed effectively into 2022.”

Write to Lydia O’Neal at lydia.oneal@wsj.com