Truck, Trailer and Motor Home Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated

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The ongoing retirement of baby boomers will drive growth in RV sales and strong international trade will bolster truck-trailer manufacturing; however, environmental concerns may offset demand unless manufacturers employ new technologies in the vehicles. For these reasons, industry research firm IBISWorld has updated a report on the Truck, Trailer and Motor Home Manufacturing industry in its growing industry report collection.

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Improved credit access and high trade volumes will stimulate industry growt

The Truck, Trailer and Motor Home Manufacturing industry is set to move forward after a catastrophic collapse in demand during the recession. Demand from truck transportation, domestic trips by US residents and total trade value all fell, contributing to industry contraction. Consequently, industry revenue is expected to fall at an average annual rate of 1.2% in the five years to 2013 to $30.2 billion. This decline follows a growth period in which the ongoing retirement of baby boomers drove increases in recreational vehicle (RV) sales. “In addition, freight trucking companies rushed to buy heavy trucks before environmental regulations on such trucks caused prices to rise in 2007,” says IBISWorld industry analyst Brandon Ruiz. “However, many trucks purchased during that time were only lightly used due to the decline in freight activity in the following years.” Revenue plummeted in 2009, dropping a sharp 29.0%. Reduced credit access and decreased consumer spending weakened RV sales, while sales of semi-truck trailers suffered as freight activity fell. As a result, downstream truck, trailer and motor home dealers' sales slowed and demand for shipments from manufacturers declined.

Amid weakened demand, many Truck, Trailer and Motor Home Manufacturing industry operators, including major player Thor Industries, underwent mergers, acquisitions or bankruptcy. From 2008 to 2013, the number of industry operators has fallen at an average 1.0% per year to 1,789. The industry has very low market share concentration; small manufacturers and private operators make up the majority of revenue. “This concentration has been fairly consistent over the past five years, though bankruptcies and acquisitions have caused intermediate fluctuations,” adds Ruiz. Fleetwood Enterprises, formerly a major RV manufacturer, filed for bankruptcy in 2009 and liquidated its assets. Berkshire Hathaway purchased the RV manufacturer Forest River in 2005; in 2008, Berkshire purchased Coachmen Industries, another failing RV manufacturer, and merged Coachmen Industries with Forest River. However, most RV and semi-truck trailer manufacturers have fairly small operations.

Revenue has increased with the industry's recessionary lows behind it, as credit access and consumer spending gradually improve. Under these improved conditions, revenue is expected to increase 0.7% in 2013. Demographic trends that support the industry (such as the retirement of baby boomers) and sustained high trade volumes will continue to drive growth through 2018. During the period, revenue is forecast to approach prerecession levels. Furthermore, profit is projected to rise significantly after severe losses incurred from 2008 to 2010. However, the industry will face increased pressure from environmental concerns regarding fuel emissions, though the growing presence of hybrid-electric vehicles will likely soften this threat. For more information, visit IBISWorld’s Truck, Trailer and Motor Home Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Establishments in this industry primarily produce motor vehicle bodies, truck trailers, motor homes and recreational vehicles (RVs).

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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Gavin Smith
IBISWorld
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