Industry Analysis & Industry Trends
The industry has recovered relatively well over the five years through 2013-14. Companies looked to hold off on the maintenance of their trucks at the beginning of the five-year period, causing a slight decline. However, this was quickly offset by the growing demand from downstream industries. As momentum builds, industry revenue is forecast to grow by 3.5% in 2013-14.
The performance of the Heavy Duty Truck Parts Wholesalers industry is highly dependent on demand from final markets for its goods, such as the Road Freight Transport industry. Road freight companies tend to use more trucks than any other industry. These trucks are often large, articulated trucks transporting heavy loads... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has medium barriers to entry, which relate to the need to build relationships with suppliers and customers, as well as the capital required to start operating. All large industry participants have strong relationships with overseas-based manufacturers of heavy truck parts. This enables industry participants to sell products to brand-affiliated dealerships and repair stores. Even minor players have relationships with international manufacturers, although they struggle to compete on price with vertically integrated global companies. Such smaller operators need to establish relationships with multiple brands to compete on range.
The majority of a wholesaler's cost structure is made up of purchase expenses... purchase to read more