Industry Analysis & Industry Trends
The Truck Dealers industry took a double blow in the past five years, with industry revenue falling because of new, stricter EPA regulations as well as the constricting effects of the recession. Pent-up demand and pre-buying are currently driving growth in the industry, but another EPA requirement taking effect in 2014 will stifle the industry's ultimate growth. Revenue will rise slightly over the next five years, but overall the industry is in the decline phase of its life cycle.... purchase to read more
Industry Report - Industry Investment Chapter
Truck dealers require salespeople, technicians and office workers to operate. In 2012, wages account for about 9.6% of industry revenue. Labor costs have been volatile over the past five years. For example, wages as a share of revenue increased in 2007, but decreased in 2011, reflecting depressed sales volume more than layoffs. Nonetheless, wage declines in 2009 were largely due to layoffs and dealer closures brought on by the recession.
Industry depreciation costs are low. By classifying vehicles as short-term assets, truck dealers tend to avoid significant depreciation expenses. Service equipment and the physical dealership are the industry's primary long-term assets. In 2012, the industry spends about $0.16 on capital for every dollar spent on labor... purchase to read more