Industry Analysis & Industry Trends
Operators in the Truck and Bus Manufacturing industry experienced volatile swings over the past five years. The Environmental Protection Agency enacted a final phase of emissions standards in 2010. As a result, truck manufacturers experienced increased demand for vehicles that are compliant with these new standards. Over the past five years, many players have expanded internationally, with a particular focus on Asian and South American markets. The relative decline of manufacturing and export-focused industries in the United States limited growth prospects for truck manufacturers; as a result, manufacturers moved operations to emerging economies where production costs are lower. The next five years are expected to be brighter for the industry... purchase to read more
Industry Report - Starting a New Business Chapter
In general, this capital-intensive manufacturing industry presents several costs that can discourage some new entrants. For example, the high capital cost required for developing high-volume production facilities in order to benefit from economies of scale can act as barrier to entry. Manufacturing trucks and buses must be done on a large scale to be profitable. A small company or single proprietors may not be able to find the necessary funding to even start a business.
Additionally, the need to comply with stringent environmental regulations in the future would require substantial research and development (R&D) investment for an entrant, and can act as a deterrent... purchase to read more