The industry has benefited from drivers scheduling repairs they had put off during the recession
Los Angeles, CA (PRWEB) June 26, 2013
The Truck Repair industry has moderately contracted over the past five years. Corporate profit and consumer disposable income plummeted during 2008 and 2009, respectively, leading to a sharp contraction in truck shipping and driving activity. As truck shipping volume declined, “trucking fleets cut back on outsourced maintenance services to this industry,” says IBISWorld industry analyst David Yang. “Additionally, consumers delayed maintenance services, choosing instead to fix trucks themselves.” Industry firms also faced growing competition from auto dealerships, which developed internal service and maintenance teams to retain and attract more customers. As a result, IBISWorld expects industry revenue to fall at an annualized rate of 0.2% to $26.0 billion over the five years to 2013.
Since 2009, Truck Repair industry revenue has slowly recovered as consumer income and corporate profit recovered. Truck shipping and new car sales picked up, which boosted demand for maintenance and repair services. Additionally, consumers became more willing to seek professional maintenance and repair services provided by industry operators. According to Yang, “Dismal car sales during the recession years also increased the overall age of the vehicle fleet, and older trucks needed repair services before returning to the road.”
Nevertheless, this industry has faced pressure to consolidate during the previous five years. In particular, competition from auto dealers' maintenance offerings pushed down industry services rates. While profit is estimated to increase over the five years to 2013, the growth is mostly due to the recovery from the recession. As a result of low profit during the recession, the number of truck repair firms fell at an average annual rate of 0.5% over the past five years.
In the five years to 2018, strengthening corporate profit and consumer income will boost demand for truck repair and maintenance. Additionally, steadily rising oil prices will stimulate research and developments on engine energy efficiency. As trucks become more energy-efficient and technologically complex, skilled mechanics will be needed to provide repair and maintenance services. Industry firms will be able to charge higher rates, stimulating profit growth. For more information, visit IBISWorld’s Truck Repair in the US industry report 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 provides aftermarket repair services and products for light, medium and heavy-duty trucks. Aftermarket refers to maintenance, repair, parts, accessories, chemicals and fluids for trucks after their initial sale. This industry excludes repair and maintenance services provided by truck dealers and gas stations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.