Industry revenue is expected to trend higher, bolstered by restored demand in recreational consumer-based vehicles
New York, NY (PRWEB) April 08, 2015
Over the five years to 2015, revenue for the Truck, Trailer and Motor Home Manufacturing industry is expected to increase. The industry is unique in the sense that industry operators manufacture both consumer-based goods and products for freight operators. As a result, the industry has a variety of factors that support demand; however, the industry is highly cyclical. For example, RVs and motor homes are typically big-ticket discretionary purchases. Consequently, demand for this segment surged in light of the economic recovery. Moreover, freight operators resumed purchasing new trucks and trailers when trade activity rebounded. Despite this growth, industry revenue is not expected to reach prerecessionary levels. Nevertheless, IBISWorld expects industry revenue to increase over the five years to 2015.
According to IBISWorld Industry Analyst Brandon Ruiz, “trade also remains an integral component of the industry.” As a result, industry revenue tends to ebb and flow with fluctuations in the value of the Canadian dollar. Over the five years to 2015, industry exports are expected to benefit from the depreciation of the Canadian dollar relative to other currencies. Moreover, industry operators benefit from the North American Free Trade Agreement, which enables the United States, Mexico and Canada to trade freely. To this end, exports are expected to soar over the five-year period due to the relative weakness of the Canadian dollar. On the other hand, imports are also anticipated to increase due to renewed demand from the domestic economy.
Over the five years to 2020, industry revenue is expected to trend higher, bolstered by restored demand in recreational consumer-based vehicles, as well as trucks and trailers for freight operators. RVs and motor homes are anticipated to experience renewed demand from retirees, the segment's largest market. Moreover, the number of adults aged 65 and older is forecast to rise, expanding the total pool of potential customers. “Retirees are typically the largest major market for RVs and motor homes due to their flexibility and willingness to travel,” says Ruiz. Similarly, demand from downstream truck transportation is also anticipated to increase as the domestic economy continues to improve. As a result of these trends, industry revenue is expected to rise.
For more information, visit IBISWorld’s Truck, Trailer and Motor Home Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Truck, Trailer and Motor Home Manufacturing industry primarily manufactures motor vehicle bodies and cabs, truck trailers and noncommercial trailers. The bodies and cabs may be sold as such, or assembled on purchased chassis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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