Favourable economic conditions drive demand and revenue growth
Melbourne, Australia (PRWEB) January 11, 2014
The Truck Dealers industry has been burdened by unfavourable conditions over the past five years, resulting in a weak performance. The global economic crisis caused business confidence to fall sharply in 2008-09, leading to weak sales. The lingering post-financial crisis blues further delayed companies from investing capital into the purchase of new trucks, which caused industry revenue to decline in 2009-10 and 2010-11. Merchandise import and export activity declined sharply in 2009-10, which exacerbated the drop in industry revenue over the year. Weak conditions have also led to many firms culling employment numbers due to reduced labour requirements. According to IBISWorld industry analyst Kosta Lev, “enterprises are expected to follow a similar trend as smaller firms have struggled to remain afloat”.
However, the Truck Dealers industry has been on the path to recovery since 2011-12 and has grown in each year since then. “Demand from the road freight sector has strengthened, which has assisted in the industry's recovery,” says Lev. In addition, the government's interest rate reductions over the past two years have increased the availability of credit for the industry's customers, which is resulting in positive demand.
Over the next five years, industry revenue growth is expected to speed up as many of the obstacles from the previous period are left in the rear view. More favourable economic conditions over the next five years are expected to result in increased business confidence, which should stimulate demand for industry goods. Merchandise trade is also expected to grow and result in increased activity for the road freight sector, which will further boost demand.
For more information, visit IBISWorld’s Truck Dealers report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry includes operators that primarily sell medium- and heavy-duty trucks. The sale of trucks excludes the sale of truck semi-trailers, minivans and utility vehicles. The industry's activities also exclude repair and maintenance services, the sale of truck parts and other aftermarket services.
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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