Utility, Cargo and Specialty Trailer Manufacturers NAICS 336212, 336214

Sep 30, 2025 - Tariff Uncertainty Stalls Trailer Demand

• According to a report to Transport Topics, tariff uncertainty is significantly dampening demand in the utility, cargo, and specialty trailer industry, with dealers and manufacturers reporting reduced orders and cautious inventory strategies. Steel and aluminum tariffs, raised to 50% in 2025, along with levies on components and semiconductors, have made trailer pricing unpredictable, discouraging new purchases. Dealer inventories fell 47% year over year, and production is expected to bottom out in Q1 2026 before gradually recovering, according to FTR Transportation Intelligence data. While dry van and refrigerated trailer segments saw the steepest declines, flatbed trailers have remained comparatively stable, though still under pressure. Manufacturers face challenges passing cost increases to customers and managing offshore component sourcing. The lack of tariff clarity continues to stall investment and planning, forcing industry stakeholders to delay decisions and brace for prolonged market softness.
• Transportation equipment manufacturing, which includes utility, cargo, and specialty manufacturers, is one of the ten manufacturing industries reporting contraction in August’s Manufacturing ISM Report on Business. Transportation equipment manufacturers reported increases in raw materials prices and inventories, while reporting a decline in new orders, a decrease in production, lower employment, and lower backlogs. Other manufacturing industries reporting contraction during the period were Paper Products; Wood Products; Plastics & Rubber Products; Furniture & Related Products; Machinery; Electrical Equipment, Appliances & Components; Computer and Electronic Products; Chemical Products; and Fabricated Metal Products. Seven industries reporting growth were Apparel, Leather & Allied Products; Textile Mills; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Miscellaneous Manufacturing; and Primary Metal. Overall, economic activity in the manufacturing sector contracted for the sixth consecutive month in August, with the Manufacturing PMI registering 48.7%.

• US trailer net orders increased 17% in August 2025 year over year and 3% month over month, reaching 9,000 units, according to Freight Transportation Research (FTR) data in Fleet Equipment Magazine. Trailer production was down 6% in August 2025 year over year and 5% month over month. Rising material costs of building trailers tied to higher tariffs on steel and aluminum, as well as moderating economic activity and weak for-hire carrier profitability, are placing financial pressures on players in the industry. The outlook for 2025 continues to be subdued build rates and softer intake levels. Year to date, trailer net orders for 2025 were up 23% compared to the same period. Cancellation rates moderated in August 2025 to 1.9% of backlog, down from 4.2% in June, according to preliminary data.
• 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.