The State of the Race Trailer Industry
It’s a phrase that the race and performance industry lives by: “If you’ve got a race car, you need a trailer.” But starting in the spring of 2020 (or earlier), acquiring a trailer got much more…complicated. As the COVID-19 pandemic kicked off a global manufacturing shutdown, and issues with parts acquisition due to tariffs on Chinese imported steel and parts make getting components harder and harder, the trailer industry found itself in an unprecedented situation. Demand was rising, but supply was growing ever more limited.
Fast forward two years, and trailer dealers are in a quandary, although a financially beneficial one. Lack of inventory from factories means that the resale value of the used trailer has skyrocketed, and everyone is in a hurry to get their hands on used merchandise, as well as new.
“Like everyone, we’re struggling with inventory,” says Alan Cape of Flying A Motorsports in Cuba, Missouri. “To survive as a dealer, we’re doing a lot of consignments. Buying things from people who don’t need their equipment — buying it back. We’ve been doing this for over 30 years, and we’ve been doing race car related stuff for that whole time. Because we’ve been doing this for so long we have thousands of previous customers. If they’re ready to sell their equipment we’re able to help market that equipment so that works out for them and keeps us busy as well. We also sell motorhomes as well as trailers and the same holds true in that arena. Besides the limited number of motorhomes we can get we’re also able to help our customers sell their units. All in all it works out well for our customers and us.”
Lane Morgan, of Renown Cargo Trailers in Douglas, GA, agrees, “We have run into some battles fighting to get materials, but I think that’s everyone in the industry and the world. We did the best with what we’ve had, but the market is stronger than ever. Prices have gone up. I think a cargo trailer is the only product I know that’s gone up over 100%, and hopefully the market will stay that way.”
“Sales at this time are record breaking. They were last year as well. 2020 was pretty good too, considering the massive shutdowns due to COVID. In 2021, and so far in ’22, the sales have been off the charts,” confirms Lance Brannon of LB Trailers in Rogersville, AL.
Despite the price increases, dealers are seeing customers adjusting quickly to both the sticker shock, and the type of inventory available.
“Since COVID, customers’ spending habits have changed greatly,” says Brannon. “I feel like we are seeing lots of impulse buying now, and I think that is mostly due to COVID. Cash sales are off the charts, 500% higher than in recent years.”
And it’s not just the base trailer, it’s the desire for bigger, better and more options, something that started before the supply chain shutdown. Particularly with the race crowd.
“Over the last few years, the average person who used to be happy with a 28 foot trailer and a pickup is looking at a bigger truck and a stacker trailer. Everyone is getting more exotic in their racing stuff, bringing more stuff, bringing their kids, etc. Everyone wants more,” says Cape. “Racers are going to race no matter what, so the average person is going above average when it comes to racing transport.”
“It seems right now, the more options the better. We are so busy adding jacks, awnings, generators, ramp overs and other customizations that we are staying about 3 months behind in the shop,” confirms Brannon.
Individual sellers are also seeing an opportunity as prices rise. Flying A Motorsports acts as both dealer and broker, “People are calling us and telling us ‘I don’t need my trailer, can you help me sell it?’ Although, it’s a challenge because they want more than they paid for it new. $30,000 selling for $50,000, etc. Prices are higher than they normally would be,” Cape says. “It’s going to take a couple of years, maybe longer to catch up because trailers are still being ordered even though they aren’t available.”
It isn’t just cargo trailers that are in demand. Most trailer dealers stock motorhomes and RVs, and other inventory in addition to the typical enclosed cargo trailer used by racers.
“When COVID hit, we started thinking outside of the box and started doing other stuff,,” describes Morgan. “There were suddenly a lot of regulations on businesses, so we started utilizing trailers for mobile businesses, saving customers a lot of rent and overhead because it’s must cheaper to build a trailer than brick and mortar.”
The business also helped some of its major contractors pivot. When fast food giants Burger King, McDonald’s and Wendy’s started having issues with a huge influx of food delivery workers clogging up restaurant lines, they worked with Renown to set up free-standing 28 – 30 foot trailers that were customized with fully operational kitchens that could serve as pickup points for DoorDash and other services.
Despite the apparent boom, most dealers emphasize that they remain both cautious and committed to their customers. “We still offer a nationwide warranty,” says Morgan. “We want people taken care of in their purchase beyond the point of sale. That’s our priority.”
Brannon agrees, “Our main focus is still to offer a great product at a competitive price, and the best service after the sale.” He also expresses the concern that has the industry as a whole holding its breath. “I am really concerned that due to parts shortages we are about to hit a big wall. I feel like we could a massive recession due to shortages and unprecedented inflation of prices. Our prices are 60% higher than 1 year ago and sales are 50% higher. I am afraid we are seeing the perfect storm forming that will end in a huge downfall for the trailer industry. Only the strong are going to survive.”
So what does that mean for the racer, still struggling to put their hands on an enclosed trailer? Well, expect to spend more on something used and wait for something new, even as supply chains are starting to open again. Add in fluctuating manufacturing capabilities, a global economy still reeling from a pandemic, and now rising gas prices due to the conflict in Ukraine and sanctions against Russia, and it doesn’t seem as if the trailer challenges are going to go away anytime soon.
Need a trailer? Check out the trailer categories on RacingJunk.