As we move into the second half of the year, I’m encouraged by what we’re seeing across the towing and recovery market.
A recap of whatâs happened
For the past several quarters, dealer inventory has remained at healthy levels. One of the indicators I watch most closely is dealer floor-plan utilization, and that has stayed remarkably consistent. Dealers are carrying the right amount of inventory while maintaining available capacity to replenish stock as equipment moves. That’s an important sign that trucks are flowing through the channel at a steady pace and customers are continuing to invest when the timing is right. From where I sit, that steady rhythm is returning after a period of uncertainty.
One of the strongest indicators of that confidence has been the market’s response to our JD35/40 Ton Rotator. When we introduced this truck last year, we believed there was an opportunity to deliver a rotator that filled an important gap in the market â and customers have validated that belief.
The success of the JD35/40T comes down to solving real challenges for towing and recovery professionals. It combines heavy recovery and towing capability in a single truck, giving operators the flexibility to handle more jobs with one piece of equipment. Whether recovering a concrete mixer, school bus, vocational truck or other heavy vehicle, it provides the capability many fleets need every day while offering a more attractive investment than larger rotator models.
Its size is another advantage. The truck is designed to operate in many jurisdictions without the additional permits often required for larger rotators, giving operators greater flexibility while helping manage operating costs. It’s rewarding to see customers recognize the value of a truck that delivers versatility, capability and a strong return on investment.
A look at whatâs coming
While overall demand remains healthy, we’re also keeping a close eye on several external factors that could influence the market in the coming months as we look toward 2027.
The industry continues to watch potential federal EPA guidance related to upcoming chassis emissions requirements. Depending on how those regulations are implemented, chassis costs could increase significantly across multiple truck classes. While Jerr-Dan body pricing has remained relatively stable, chassis pricing ultimately affects the total investment customers make when purchasing a new truck.
The good news is that these potential changes aren’t expected to affect the remainder of 2026. In fact, some fleets may choose to move planned purchases forward before any future pricing changes take effect. We’ll continue monitoring developments closely and keep our dealers and customers informed as more guidance becomes available.
Financing conditions have also remained relatively consistent. Interest rates have held steady throughout the year, giving customers more predictability as they work with their lenders and plan equipment purchases. While inflation and broader economic conditions remain factors to watch, today’s stable lending environment provides confidence as we head toward the industry’s busiest buying season.
Preparing for industry events
Speaking of buying season, we’re looking forward to seeing many of you this fall. Before heading to the American Towman Exposition in Baltimore, our team will be attending regional events throughout the quarter, including Texas Tow Show, North Carolina Tow Show, and Ohio Tow Show, as well as several state towing association gatherings. These events provide valuable opportunities to connect directly with operators, hear what’s happening in your businesses and discuss the challenges and opportunities shaping our industry.
As we prepare for Baltimore, we’re continuing to invest beyond new equipment. We’re expanding our aftermarket support by increasing parts inventory and adding more of the products towing professionals rely on every day â from dollies and light bars to other high-use service items. Our goal remains the same: Helping customers keep their trucks working and minimizing downtime when it matters most.
As always, thank you for your continued partnership and trust in Jerr-Dan. We appreciate the opportunity to support your business and look forward to seeing many of you over the coming months.
Have a safe and successful quarter.
Bob Nelson, Vice President & General Manager, Jerr-Dan
