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 - Industry Investment Chapter
Heavy Duty Truck Parts Wholesalers industry has a low level of capital intensity with a capital-to-labour ratio of 10.1%. This means that for every dollar spent on capital, a further $9.79 is spent on labour. The low level of capital can be largely attributed to the networking and storage aspects of the wholesaling business.
Larger wholesalers tend to be much more capital intensive, as having automated ordering, sorting and storage systems in place becomes economically viable. Smaller operators may do most of the ordering manually and only use a couple of forklifts for storing. Overall, capital intensity is expected to increase over the five years through 2018-19 as operators seek more efficiencies... purchase to read more