Industry Analysis & Industry Trends
The Truck Dealers industry has benefited since 2010 from recovering demand from the manufacturing, construction and trucking sectors, and industry revenue has inched toward prerecession levels in recent years. The economic recovery released pent-up demand from the industry's primary markets, resulting in a strong increase in sales of heavy-duty trucks. However, new federal fuel-efficiency regulations will be a double-edged sword for the industry going forward; in the short-term, dealers may experience pre-buying activity as customers move to preempt impending price hikes, while in the long-term, higher purchasing costs from manufactures will likely constrain profit margins. Nevertheless, positive economic trends are expected to sustain industry growth in the next five years.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Truck Dealers industry are moderate. Barriers include state regulations, manufacturer franchise agreements and start-up costs. The industry is highly fragmented, with no company holding a significant market share of more than 5.0%. However, this low concentration leads to high competition that is often based on price and can make it difficult for new entrants to create profit. New entrants must be able to establish a positive reputation with downstream customers to make sales and secure potential contracts.
Dealers entering the industry face significant capital costs; industry operators must make large, up-front investments in inventory purchases, dealership lots and skilled mechanics... purchase to read more