Garbage-Collection Vehicle Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

Share Article

The recession led to a drop in production across almost every sector of the economy, with construction and manufacturing activity taking heavy hits. Housing starts came to a near-complete stop, and as consumers' incomes dropped, they consumed less and produced less waste. Demand for waste collection services, the major customer base for the Garbage-Collection Vehicle Manufacturing industry, dropped as these downstream waste sources dried up. As the economy improves and construction activity returns to health, the industry is expected to recover. Clients looking for fuel-efficient, cost-reducing vehicles will drive demand up for newer, more advanced industry products. For these reasons, industry research firm IBISWorld has added a report on the Garbage-Collection Vehicle Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Firms that capitalize on customers' desire for fuel-efficiency will perform well

The Garbage-Collection Vehicle Manufacturing industry declined over the past five years. Industry revenue is expected to decrease at an average annual rate of 1.4% to $998.3 million in the five years to 2012. The recession caused businesses and consumers to produce less waste, prompting many waste collection firms to hold off purchasing and leasing new vehicles. According to IBISWorld industry analyst Justin Molavi, “These firms also faced difficult financing conditions as credit markets tightened up, making it difficult to borrow money to finance capital purchases.” Municipalities also purchased fewer trucks, as high unemployment and a drop in consumer spending resulted in fewer tax dollars available for garbage truck purchases. Additionally, as consumers started pulling back spending, waste volumes trended downward, reducing the need for more refuse vehicles.

There have been some glimmers of hope for the industry, however. Waste collection firms in a better position to purchase new vehicles opted hybrids or vehicles that use alternative fuels, such as compressed natural gas. These firms faced rising fuel costs over the past five years and sought ways to bolster their own profit margins by purchasing vehicles that could save on operational costs (i.e. fuel). “Furthermore,” says Molavi, “the expiration of a bonus deprecation tax at the end of 2011 will serve to help sales activity as many customers ramp up purchasing activity to take advantage of the tax haven.” In turn, industry revenue is expected to expand in 2012. The Garbage-Collection Vehicle Manufacturing industry is heavily concentrated, with the top four players – AB Volvo, Oshkosh Corporation, Dover Corporation and AutoCar LLC – controlling almost the entire market.

The next five years are set to be brighter for the industry. As the US economy gains steam, commercial entities like restaurants and hotels will create more waste, responding to higher demand from consumers. Waste collection firms will respond to this increase by purchasing more vehicles to meet the demand. Also, as unemployment wanes, municipalities will experience heightened tax revenue, providing the basis for higher refuse vehicle purchases. Customers will continue to seek garbage trucks that can save fuel costs, as these costs are expected to continue to rise over the next five years. As a result of these trends, industry revenue is anticipated to expand in the five years to 2017. For more information, visit IBISWorld’s Garbage-Collection Vehicle Manufacturing report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry manufactures garbage collection vehicles. These vehicles are used by waste collection and treatment companies to pick up and gather waste from residential and commercial sites. This industry does not include vehicles that collect hazardous waste.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+1(310) 866 5042
Email >
Visit website