The number of trucks registered in Australia is expected to increase, which means more parts will be required to service them.
Melbourne, Australia (PRWEB) September 30, 2013
The industry has recovered relatively well over the five years through 2013-14. Companies looked to hold off on the maintenance of their trucks at the beginning of the five-year period, causing a slight decline. However, this was quickly offset by the growing demand from downstream industries. As momentum builds, industry revenue is forecast to grow by 3.5% in 2013-14. The performance of the Heavy Duty Truck Parts Wholesalers industry in Australia is highly dependent on demand from final markets for its goods, such as the Road Freight Transport industry. According to IBISWorld industry analyst Caroline Finch, “Road freight companies tend to use more trucks than any other industry. These trucks are often large, articulated trucks transporting heavy loads, and as such, there is a large amount of wear on components, particularly tyres, brakes and transmissions.”
Demand from road freight has been recovering over the past five years. This has provided a substantial boost to industry revenue, which is forecast to grow at a compound annual rate of 1.3% over the five years through 2013-14 to reach $2.2 billion. The Heavy Duty Truck Parts Wholesalers industry has a low level of industry volatility. “This is because it is protected by regulation, to the extent that trucks have to get a minimum level of maintenance to be roadworthy,” says Finch. The industry has a low share of concentration, with Iveco Trucks Australia Ltd and Isuzu Australia Limited the only major players.
The outlook for the Heavy Duty Truck Parts Wholesalers industry remains positive. The number of trucks registered in Australia is expected to increase, which means more parts will be required to service them. Higher demand from road freight transportation will also contribute to revenue growth. As logistic companies look to increase their productivity, larger trucks may be used more intensively. These require more tyres and come under greater wear due to their heavier loads. Consequently, tyres and brakes are anticipated to grow as a product segment. Industry profitability will continue to remain a function of sale and the trade-weighted index. An expected decline in the trade-weighted index will put some pressure on profitability margins.
For more information, visit IBISWorld’s Heavy Duty Truck Parts Wholesalers in Australia industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry wholesale truck parts and supplies for commercial trucks. Products include drive train parts, tyres, brake pads and other consumables. The industry does not supply parts for off-road vehicles such as mining trucks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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