Industry Analysis & Industry Trends
The Semi-Trailer and Truck Rental industry has cruised through a growth period over the past five years, despite some minor bumps along the way caused by fluctuations in Australia's merchandise trade. The industry's revenue is expected to grow by an annualised 2.5% over the five years through 2015-16, to $110.0 million. This includes growth of 2.8% during the current year.
The industry fulfils a small but important role in the transport sector, supplementing the fleet of transport firms to help meet short-term requirements. This includes coping with a spike in customer orders to be filled, the need to meet unusual vehicle specifications (outside the normal vehicle fleet), and the temporary replacement of fleet stock in response to vehicle breakdowns... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a low degree of market concentration, with the four largest semi-trailer and truck rental companies together expected to generate an estimated 32.1% of industry revenue in 2015-16. The industry has a fragmented structure. The majority of the businesses are small, private enterprises serving only a particular geographic region. Several of the largest players operate their businesses across multiple locations, notably Orix Australia, Rentco, Krueger Group and KTEQ Rentals. Economies of scale are difficult for operators to achieve due to the importance of proximity to their target markets. Operators are unable to store a large number of prime movers and trailers in one facility because that could create overcapacity for that particular region... purchase to read more