Industry Analysis & Industry Trends
The Semi-Trailer and Truck Rental industry has cruised through a growth period over the past five years with some minor bumps along the road. The industry is expected to grow by 2.3% over the five years through 2013-14, to reach $87.1 million. This growth is understated, as it comes off a high base year in 2008-09. Over 2008-09, the industry benefited from an increase in merchandise imports and exports. The Road Freight industry, a key source of industry demand, declined over the year. Although this is usually bad for revenue, when combined with a simultaneous growth in merchandise trade it was in fact beneficial for the industry... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry are high. Establishing new operations requires large amounts of capital to purchase the prime movers and trailers. In order for a business to be successful, it has to have a large product range consisting of different varieties of trailers and trucks. Prime movers can range anywhere from $100,000 to $350,000. Even if the equipment is leased, a sufficient amount of capital is required to cover the negative cash flows before operations gain momentum. Prices of semi-trailers vary depending on their complication and specification.
On a positive note, establishing new operations does not require established relationships with customers and previous reputation. The business tends to be based on one-off transactions... purchase to read more