Optimism in uncertain times

“Should we order more or less? We’re trying to collect feedback from our trailer suppliers, trailer manufacturers, but they don't have forecasts,” said Murat Gocay, chief engineer at Taskmaster Components. “We’re trying to choose the suppliers, find what is going to be the price. It’s a very difficult period for everybody.”

A major driver of this uncertainty is the impact of tariffs and inflationary pressures. The effective tariff rate has surged from 3% to around 10% in the past five years while new tariffs, such as a 50% tariff on steel and aluminum exports to the U.S., create significant challenges for cross-border trade and supply chains. These tariffs have an inflationary effect on raw materials, which inevitably impacts the price of trailers. Manufacturers are attempting to absorb some of these costs, but panelists agree this is not sustainable long-term.

The unpredictability of fiscal policy, including interest rates and potential political changes, further complicates forecasting and strategic planning.

“The tariffs are still going to have an inflationary effect, even if you're not directly importing trailers,” said Johnathan Bradley, chief commercial officer at Liberty Trailers. “The raw materials are going to continue to inflate and you have the U.S. suppliers seeing an opportunity to raise prices. It's really important for dealers, especially as we're going into the slower part of the seasonality, to make sure you're being smart with your inventory choices.

“Don't try to guess and outsmart the market. Just get what you need, sell it, replenish—rinse and repeat.”

Despite these headwinds, there are strong reasons for optimism. The global trailer industry is projected to grow substantially, from $60 billion in 2024 to a projected $140 billion, with the U.S. market doubling to $60 billion. Furthermore, positive signals like increased infrastructure spending (up to $300 billion from $115 million in 2002) and rising capex point to strong, resilient demand pockets.

“The trailer business is the right business; you just need to dodge this bullet right now, manage this situation,” Gocay said. “Otherwise, I believe you all are in the right industry. The future is optimistic.”

Strategies for dealer success

In the face of these economic conditions, the panel offered a range of practical advice. The consensus was clear: fortunes are made in the downturns. Dealers who use this period to refine their operations will be best positioned to reap the rewards when the market rebounds.

“There's a lot of selling tactics that can get us through the next six months in a thriving way,” said panel moderator Jonathon Aguero, senior vice president of revenue at Blackpurl. “Be one of the winners that reaps the rewards come 2026.”

Here are five key takeaways for improving dealership operations.

1. Master inventory and financial management

• Run a tight ship: The most repeated advice was to manage inventory meticulously. Dealers should avoid speculative or reckless buying, focusing instead on a "rinse and repeat" model of selling and replenishing what is needed.

• Prioritize fast-turn models: Put a bias toward models that sell quickly to keep capital working for you. Diligently check the aging of your inventory and be proactive in moving older units, even if it means accepting lower margins on them.

• Control expenses: Now is the time for a "laser focus" on operational efficiency. Monitor everything from office supplies to staffing levels to ensure you are running a lean operation without stripping away core capabilities needed for future growth. A key metric to watch is the personnel expense ratio (total personnel expenses divided by gross profit).

“If you're over 50%, it's going to be tough to be profitable,” said Mark Spader, with NCM Associates, a dealer consultancy who puts together dealer “peer groups” to benchmark and share operational insights.

2. Elevate the customer experience

The majority of dealers in the room believed the industry would be won on customer experience, not price.

• First impressions matter:  Spader of NCM Associates noted that he wouldn't do business with nearly nine out of ten dealerships he visits, primarily due to poor culture and appearance. Simple things like a clean parking lot, a tidy showroom, well-organized parts shelves, and clean bathrooms create an immediate impression of professionalism that builds trust.

• Create an efficient buying process: Top dealers focus on making the entire experience seamless. This includes a strong online presence with a customized, interactive website where customers can build, price, and even place a deposit on a trailer. Online financing applications and texting platforms for quick communication are also essential tools for reducing friction.

• Educate the customer: An educated consumer is the best consumer. Use video tutorials and detailed online content to explain the features and benefits of your products, setting your customers "up for success" and differentiating your dealership from competitors who may only sell on price.

3. Develop your service department into a profit center

With new unit sales softening, the service and parts departments become crucial revenue streams.

“At some point, those trailers that we sold during the during the bubble are going to need to get replaced. And if [customers] are stretching out that time frame, not buying a new trailer, but doing more repairs and service? That's opportunities for dealers,” Bradley said. “Make sure that your service and parts departments are geared up and that they're stocking the right product, and that that you're bumping your labor hours up to the right amount. That’s how you play a little bit of defense the rest of this year knowing that 2026 could be an opportunity for dollars.”

• Invest and market service: Many dealers have historically neglected their service departments. Shane Thompson of Action Trailers shared that by focusing on marketing his service department, hiring the right technicians and service advisors, and implementing proper management systems (DMS/CRM), he increased service revenue by 60% over three years.

• Find your niche and price accordingly: Any mechanic can change brakes, but not every shop can replace a trailer panel, install windows, or repair a roof. Dealers should capitalize on these specialized, higher-margin jobs by establishing a different, higher labor rate for custom work compared to generic maintenance.

• Leverage supplier training: Distributors and manufacturers often provide in-house training for technicians on specific products, like brake systems.

“You hang that certificate on the wall that says, Eric Yearling took the Dexter 10k brake classes,” said Eric Yearling, sales manager at Waymire Distributing. “All of a sudden you’ve got validity to your tech who's working on that trailer. Now your labor and your margin, they fall right in line. Customers look: Okay, these guys are trained; these guys are investing in themselves to give customers the best possible results—which drives the customer back to you.”

4. Sharpen your sales and marketing tactics

During the post-COVID boom, many salespeople became "order takers". It's time to return to fundamental, value-based selling. But dealers first need to shift marketing strategies to focus on those pockets of business that are thriving.

“Make sure that you're making the proactive efforts to attract the customers that are buying,” said Liberty’s Bradley. “What are you doing besides your standard marketing? If discretionary spending is down, maybe it doesn't make sense to spend a lot of money going to the local sportsman's expo to try to sell ATV trailers. Instead, focus your efforts and your outreach and your resources on the customers that are going to buy: those fleet managers and the contractors that are doing infrastructure, for example.”

• Master lead response: The sales cycle is short, and today's buyers expect immediate communication. Mystery shops reveal that a shocking number of leads are never followed up on. Implementing systems for rapid, real-time communication via text and email is vital to capitalize on every opportunity.

• Leverage Technology and Video: Video is an extremely powerful sales tool. Dealers should create both short-form reels (under 60 seconds) for social media engagement and longer, in-depth tutorial videos for their websites. While professional videography can make a difference in editing and quality, dealers can start effectively with just an iPhone, focusing on authentic, unscripted content.

5. Strengthen supplier and OEM partnerships

In uncertain times, strong relationships are a competitive advantage.

• Go beyond price negotiations: While asking for discounts is part of the business, a true partnership involves more. Leverage your manufacturers for product training, marketing content, and tactical advice on how to compete in your specific market.

• Focus on value, not just discounts: When manufacturers' margins are tight, ask for value-added benefits instead of direct price cuts. This could mean negotiating to make a popular option a standard feature on the models you carry, giving you a unique selling proposition. And that selling proposition, in turns, combats dealer competition.

“There's always going to be guys that race to the bottom in price point; it sucks, because you’re trailer experts and have to do a proper job of selling, not just focusing on the price,” said Shane Thompson, president, Action Trailers. “So focus on that feature, the benefit, and having a difference in that. And videos are important. Explain that in social media videos.”

Reason for hope

Looking ahead, the light-trailer industry is poised for significant technological evolution, with trends toward advanced materials, telematics, and electric axles on the horizon. Dealers who prepare for these changes by monitoring industry trends and training their staff will be at the forefront of the market.

“We've heard today uncertainty. We've heard today optimism. And at the end of the day, that's what stands out to me: We may not know exactly what's coming next, but it's very clear there's reason to have optimism,” Blackpurl’s Aguero concluded. “There's a reason to design your business to win, so this is this isn't left up to chance. We can win.

“What each of these panelists have suggested to us is going to help us win. Here's to winning the second half of 2025.”