Revived freight activity will drive growth, as firms invest in new technologies
Los Angeles, CA (PRWEB) May 03, 2012
In the five years to 2012, the Truck Trailer Manufacturing industry’s revenue is expected to fall at an annualized rate of 1.0% to $7.5 billion; however, this slight decline masks some extreme volatility that the industry endured over the period. According to industry analyst Antonio Danova, “in general, the performance of this industry predicates on activity from the trucking and freight services industries.” When the recession struck, demand for freight services fell dramatically. Data from the American Trucking Associations (ATA) shows that truck freight tonnage (an ATA index that measures the gross weight of freight transported annually) fell 8.3% during 2009, its largest fall since 1982. As a result, trucking companies could not afford to purchase new truck trailers in the midst of such a slump.
Nevertheless, this factor turned around in 2010 during the economic recovery, as trucking demand picked up due to higher consumer spending, more business activity and lower unemployment. This trend, in turn, created new demand for truck trailer purchases from firms that needed to add fleet volume or update existing fleets from purchases deferred during the downturn. Danova says, “heavy demand led to rapid production and a remarkable turnaround for the industry.” As freight trucking activity continues improving into 2012, IBISWorld expects industry revenue to rise 9.2% during the year.
The future of the Truck Trailer Manufacturing industry remains bright, as IBISWorld expects revenue to grow during the five years to 2017. However, this growth will not come without overcoming some potential challenges. Rising oil prices and looming fuel economy standards for downstream truck manufacturers may alter the direction of the industry. Firms will have to adapt to new technologies that make truck trailers lighter and more aerodynamic, supporting the fuel efficiency of heavy-duty trucks. This trend will likely hurt smaller firms that lack sizeable economies of scale or sufficient research and development funding. However, many of the industry's dominant companies (e.g. Wabash National Corporation, Great Dane Limited Partnership and the Utility Trailers Manufacturing Company) will find success in new product development, spurring sales and buoying industry growth in the long run.
For more information visit IBISWorld’s Truck Trailer Manufacturing in the US industry page
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This industry manufactures trailers that are specifically designed for use on heavy-duty trucks. Trailer types vary based on size and purpose, and they include dry van, flatbed and refrigerated trailers. This industry does not include light truck trailers or travel trailers.
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