Truck & Bus Manufacturing

First Research, Inc.
September 8, 2014
10 Pages - SKU: FRRS5325483
Countries covered: United States

Truck & Bus Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture medium and heavy-duty trucks, as well as buses. Major companies include Navistar International and PACCAR (both based in the US), along with China FAW Group and Dongfeng Motor (China), Daimler (Germany), Tata Motors (India), and Volvo (Sweden). The industry includes companies that manufacture and assemble complete vehicles and companies that supply vehicle chassis to assembly plants.

Globally, the leading countries for heavy truck and bus manufacturing include China, Germany, India, Sweden, and the US. Commercial truck manufacturers in emerging markets are growing much faster than their more established competitors in North America and Western Europe.

The US heavy truck and bus manufacturing industry includes about 90 companies with combined annual revenue of about $27 billion. This industry does not include makers of light trucks, which are covered in the Automobile Manufacturing industry profile.

COMPETITIVE LANDSCAPE

Heavy truck demand is driven by growth in the agriculture, manufacturing, construction, and retail sectors. Bus demand is driven by growth in the number of school-aged children and investment in public transportation systems. The profitability of individual companies depends on volume and sales of high-margin options. Large companies enjoy economies of scale in purchasing. Small manufacturers can compete by offering highly customized products. The US industry is highly concentrated: the top 20 companies account for about 95 percent of revenue.

Companies in the industry compete with makers of transportation equipment such as trains and planes, which also move freight and...



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