Industry Analysis & Industry Trends
Over the five years to 2015, revenue for the Truck and Bus Manufacturing industry is anticipated to trend higher. During the period, many industry operators focused on emerging economies, such as China and Brazil, where demand for transport has risen substantially compared with developed countries. Going forward, the industry will continue its postrecessionary growth over the next five years. Heightened freight activity, in addition to increased international trade, will likely drive industry growth. Additionally, aging fleets will become a concern for trucking operators and companies will invest in new trucks as freight demand grows. Despite revenue growth expected in the United States, emerging overseas economies will entice manufacturers to focus efforts abroad... purchase to read more
Industry Report - Starting a New Business Chapter
In general, this capital-intensive manufacturing industry presents a number of 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.
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. Over the past five years, R&D costs have been on the rise, and they are expected to continue growing over the next five years... purchase to read more