Truck Repair in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) January 23, 2014 -- Over the past five years, demand for truck repair services has remained solid. Industry revenue is estimated to grow by an annualised 2.4% over the five years through 2013-14 to reach $5.1 billion. Over the period, the Truck Repair industry benefited from higher demand from the Road Freight Transport industry. Furthermore, the number of trucks and commercial vehicles continued to grow along with the number of kilometres driven for these vehicles. The higher truck and commercial vehicle traffic increased wear and tear on vehicles, which helped boost industry revenue. Countering the increased demand from higher traffic of trucks and commercial vehicles was the declining accident rate resulting from safer roads and vehicles. Industry revenue is estimated to stagnate in 2013-14 (0.0% growth) due to an uptick in capital expenditure in the private sector, which is expected to result in a newer fleet that will require fewer repairs.
Industry profitability is forecast to have increased over the past five years. This increase, however, is largely due to the low base year. Profitability has otherwise been declining since 2007-08 as a result of rising purchase costs. IBISWorld industry analyst Kosta Lev states “high commodity prices increased the cost of manufacturing parts and inputs for industry operators, which cut into margins. However, the higher value of the Australian dollar made the price of imported parts and inputs lower, which partly offset the higher purchase costs.” Commodity prices are expected to rise further over the next five years, again cutting into profit margins. The forecast depreciation of the Australian dollar will make imported parts and inputs more expensive, which will further constrain profitability. The industry is expected to continue to benefit from expansion in the truck and commercial vehicle market. Demand from road freight is expected to rise by an annualised 3.2% over the same period. The resulting wear and tear from transporting greater freight volumes will boost demand for industry services. The truck and commercial fleet is also expected to continue expanding, which will broaden the industry's market. According to Lev, “investment in new trucks and commercial vehicles is expected to lead to a newer vehicle fleet that will require less repairs and maintenance.”
The Truck Repair industry is dominated by small enterprises and is without major players. As a consequence, market share concentration is low. There are signs of a consolidation trend within the industry. The number of industry participants operating as sole traders or contractors has decreased. Another measure of consolidation, the number of establishments to enterprises, has also increased slightly. In the next five years, employment is expected to become more concentrated still. For more information, visit IBISWorld’s Truck Repair report in Australia industry page.
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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.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
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