What is the Truck Repair industry?
The Truck Repair industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.10 is spent on capital investment. The high expenditure on labour is due to the varied and customised nature of repairs and maintenance on the many truck types and models. The provision of industry services cannot be automated which adds to the labour-intensive nature of the industry.
Capital intensity is forecast to have decreased slightly over the past five years. This was not due to reduced investment in capacity. Rather, capital intensity has decreased due to rising labour costs as demand for skilled truck mechanics has increased, ultimately pushing up wage costs in comparison with depreciation costs... purchase to read more