Industry Analysis & Industry Trends
The Truck Repair industry has driven through the barriers presented to it by the weaker economic conditions at the start of the period to post steady growth over the past five years. Industry operators have benefited from increasing demand from road freight transport operators driving the volume of freight transported, which has led to greater wear and tear on trucks, subsequently stimulating demand for truck repair. As a result, industry revenue is forecast to grow at a steady rate, rising at an annualised 2.4% over the five years through 2015-16, to reach $5.3 billion.
Over the past five years, the industry has benefited from the growth of Australia's truck fleet, which has occurred despite the average age of trucks increasing... purchase to read more
Industry Report - Industry Investment Chapter
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