Heavy Duty Truck Parts Dealers in the US Industry Market Research Report Now Available from IBISWorld

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Though demand for heavy-duty truck parts fell during the recession, increased freight activity after the recession buoyed revenue for industry operators. In addition, increasing environmental regulation in the coming years is expected to continuing boosting demand. As consumer spending continues rising, boosting demand for freight trucking, revenue will continue to rise as trucking firms demand more replacement parts. For these reasons, industry research firm IBISWorld has added a report on the Heavy Duty Truck Parts Dealers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Customers are increasing their demand for replacement parts as emissions standards rise

The Heavy Duty Truck Parts Dealers industry's key markets include local, long-distance, specialized and refrigerated trucking industries. Truck and bus manufacturers also form a component of downstream demand, as companies source original equipment manufacturer (OEM) parts from this industry. Given the specialized nature of the industry's goods and markets, revenue tends to move in line with demand from truck manufacturing and freight industries, says IBISWorld industry analyst Josh McBee. Meanwhile, profit hinges on the price of steel and the ability of parts dealers to source their goods for less than the competition while instituting operational efficiencies that reduce other costs like wages.

Truck manufacturers increased demand for diesel engines when production was ramped up to meet demand from freight companies for trucks ahead of the 2010 EPA emissions standard changes. In addition, the post-recession growth in activity in the overall freight industry has added to the demand for diesel engines. In turn, demand for dealers of such engines has rebounded from recessionary lows and boosted demand for related parts. Still, the adverse effects of reduced consumer spending flowed through the freight industries to reduce demand for replacement parts, says McBee. Only tank and refrigeration trucking is expected to maintain relatively close levels of company numbers compared to 2007, while other industries suffered company exits and downsizing in the face of reduced shipping orders. The Heavy Duty Truck Parts Dealers industry is fragmented and has a low level of market share concentration. Operators range from large original equipment-affiliated or owned distributors to small, independent local distributors. In 2012, there is only one major industry player: LKQ Corporation Inc. The low concentration level reflects an increase in new entrants and the industry's high level of competition. Over the five years to 2012, the number of industry firms is expected to increase at an annualized rate of 2.7% and total an estimated 3,182 companies.
IBISWorld estimates that manufacturer demand related to regulatory compliance has offset weaker demand from freighting industries. As such, industry revenue is expected to increase during the five years to 2012. In the short term, revenue is expected to increase 1.0% through 2012 and total an estimated $16.6 billion as renewed consumer spending flows through the supply chain to boost trucking activity and, in turn, demand for related parts. During the coming five years, regulations concerning vehicle emissions will continue to play a key role in determining demand for heavy-duty truck parts. Also, as the vehicle fleet ages and steel prices continue to rise, shipping companies will seek to prolong the useful life of their vehicles through replacement parts and avoid rising new-vehicle costs. Through 2017, revenue is forecast to increase. For more information, visit IBISWorld’s Heavy Duty Truck Parts Dealers in the US industry report page.

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IBISWorld industry Report Key Topics

Establishments in this industry primarily engage in the merchant wholesale distribution of truck parts and supplies for heavy-duty and commercial trucks. Products include engine parts, differentials, transmissions, suspensions and cabs. New tires and tubes are excluded.

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.

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