Utility, Cargo and Specialty Trailer Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,026 utility, cargo and specialty trailer manufacturers in the US produce a wide variety of trailers that attach to automobiles and trucks for towing. Products include flat-bed vehicle transport trailers, boat trailers, utility trailers, cargo trailers, lift and dump trailers, horse and livestock trailers, log and pipe wagons, reel trailers, semi-trailers, and tank trailers.

Competition from Used Trailers

Trailer manufacturers compete with brands from other manufacturers, as well as used trailers sold by dealers.

Food Truck Growth

The explosion of the mobile food truck industry has significantly raised demand for modified cargo trailers.

Industry size & Structure

A typical utility, cargo and specialty trailer manufacturer operates out of a single location, employs 103 workers, and generates about $36 million annually.

    • The utility, cargo, and specialty trailer manufacturing industry consists of about 1,026 companies that employ about 106,000 workers and generate about $37 billion annually.
    • Customers include construction and landscaping firms, horse and livestock owners, towing services, trucking companies, logging operations, water tour operators, trailer rental firms, food truck up-fitters, and those needing to transport vehicles, equipment or other cargo.
    • Large companies include Sundowner, Kaufman, RollingStar, and Wilson Trailer.
                                    Industry Forecast
                                    Utility, Cargo and Specialty Trailer Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 23, 2024 - Labor Costs Rise
                                    • According to the US Bureau of Labor Statistics, average wages for nonsupervisory employees at motor vehicle body and trailer manufacturers were up 8% in September 2024, reaching $25.87 per hour. Sales for motor vehicles and parts companies, including utility, cargo, and specialty trailer manufacturers, fell in Q2 2024, down 3.4% from Q2 2023 and were up 3.9% from the previous quarter, according to the Census Bureau. After-tax profits for motor vehicles and parts companies fell slightly in Q2 2024 year over year, down 1.8% from a year ago and up 15.2% from the previous quarter.
                                    • US trailer net orders reached the lowest total in October 2024 since trailer data tracking began in 2013, according to Freight Transportation Research (FTR) data in Fleet Equipment Magazine. US trailer net orders fell 55% in October 2024 compared to the previous year, reaching 15,970 units. Compared to the previous month, orders were up 34%. Trailer backlogs declined in October 2024, ending at just over 82,000 units. According to Dan Moyer, FTR senior analyst for commercial vehicles, “Some fleets might also have been postponing trailer orders until after the November elections or in hopes of lower trailer prices. Slightly elevated trailer inventories, reduced fleet spending, and shrinking backlogs are expected to pressure trailer production levels through the rest of 2024. If 2025 trailer orders fail to rebound soon, some OEMs may need to extend or deepen production cuts into next year.”
                                    • US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Five manufacturing industries reported growth in October: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Computer & Electronic Products; and Miscellaneous Manufacturing. Industries reporting contraction in October were Textile Mills; Printing & Related Support Activities; Transportation Equipment; Chemical Products; Electrical Equipment, Appliances & Components; Machinery; Primary Metals; Nonmetallic Mineral Products; Plastics & Rubber Products; Fabricated Metal Products; and Paper Products.
                                    • The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
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