Utility, Cargo and Specialty Trailer Manufacturers NAICS 336212, 336214

May 30, 2025 - Slower Growth Forecast

• The US utility, cargo, and specialty trailer manufacturers industry is projected to grow at a CAGR of -0.06% between 2025 and 2029, slower than the overall economy's anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The durable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry. According to the forecast, investment in manufacturing facilities could stem from a range of factors, including the need to shorten supply chains after disruptions to domestic and foreign production and freight transportation during the pandemic. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is higher tariffs on consumer goods.
• US trailer net orders declined in April 2025 by 23% year over year and by 50% month over month, reaching 10,669 units, according to Freight Transportation Research (FTR) data in Fleet Equipment Magazine. The decrease, which surpassed normal seasonal patterns, could be attributed in part to tariff volatility and pressures from economic uncertainty. In light of the turbulent environment, some fleets have delayed new trailer purchases and extended equipment lifecycles. Year to date, trailer net orders for 2025 were up 27% compared to the same period in the previous year. Trailer production decreased 26% in April 2025 year over year and fell 1% month over month. Trailer backlogs declined by 19% year over year in April 2025, while the backlog-to-build ratio fell to 6.8 months.

• According to the National Association of Trailer Manufacturers (NATM), the trailer industry faces significant challenges and uncertainties, such as higher production costs and tighter margins from the evolving trade policies and tariff regulations imposed by the Trump administration. A new duty on imported steel and aluminum imposed in March 2025 affects essential materials in trailer manufacturing, including bolts, staples, nails, and similar items. New tariffs on China, Mexico, and Canada, among other countries, will create issues for companies with supply chain exposure, potentially causing disruptions and increased financial strain. The trailer industry is also concerned with retaliatory tariffs on manufactured goods applied to US exports, complicating trade relationships, according to the NATM. Companies may want to revisit their pricing agreements and negotiate terms to mitigate unexpected expenses.
• Economic activity in the manufacturing sector contracted for the second month in a row in April 2025, with the Manufacturing PMI registering 48.7%. Eleven industries reported growth in April, including Apparel, Leather, and Allied Products; Petroleum & Coal Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Machinery; Chemical Products; Textile Mills, and Primary Metals. Six manufacturing industries reported contraction during the period included Furniture Products; Wood Products; Paper Products; Food, Beverage & Tobacco Products; Transportation Equipment; and Fabricated Metal Products.