Growing share of Mexican producers and acquisition activity highlight industry developments

Modesto, Calif., March 15, 2019 — A market research report by SpecialtyResearch.net examines fabricators of four tank trailer product types in the United States, Canada and Mexico.

Over twenty thousand units are manufactured annually by some 80 companies in the USMCA (ex-NAFTA) market, for a combined annual output of $1.5 billion. The majority of participants in this activity are specialists, but there have been a number of acquisitions in the industry by companies that had no prior tank or tanker-related products. Mexican manufacturers have also increased their participation, indicating that their favorable price point is assisting in market share gains.

The report, titled Tank Trailer (Tanker) Manufacturing in North America, divides the product types into bulk feed tankers, pneumatic dry bulk tankers, liquid tankers, and vacuum tankers in both coded and non-coded configurations.

Forecasting the outlook to 2023, demand for tank trailers is projected to grow moderately through 2020, after an above average increase in 2017 and 2018. Replacement demand is expected to be the main demand driver.

  • More than half of all tanker trailers are used by the oil and gas industry, whose performance is closely linked to crude oil prices.
  • Following a precipitous drop in demand for tank trailers in 2015 and 2016, the industry recovered strongly in 2016 and 2017, resulting from a revival of fracking activities, again also related to crude oil price recovery.
  • The tank trailer market is expected to be one of the better performing segments amongst all the trailer categories in the next few years.
  • Continued increase in fracking activities will result in increases in demand for tank trailers that haul sand and related oil service products, as well as for vacuum tanker trailers that pump and transport waste from the drill site.
  • Tanker trailers also serve as a critical link in the crude oil supply chain for transportation of crude oil from remote shale fields to main pipelines and refineries. Oil exploration in remote locations currently represents a significant portion of United States oil production, and it is expected that crude oil tank trailers will continue to play an important role resulting from new construction of pipeline facilities.
  • For tank trailers that cater to the agriculture, food product and construction industries, demand moves in tandem with overall business cycles; replacement of older tank trailers in fleets is the main demand driver for trailers catering to these user segments.
  • While the tank trailer segment has a few large manufacturers, the market will continue to be serviced by a large number of small, regional fabricators that manufacture both tanker trailers and truck bodies to served local market needs.

Tank Trailer (Tanker) Manufacturing in North America is part of series of over 30 individual reports on segments of the trailer and vocational truck manufacturing industries in North America, available from SpecialtyResearch.net.

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Based in California, SpecialtyResearch.net has been in business for over 30 years as a provider of consultancy and business development services to executives in the transportation industry.

Paula Theno
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