Heavy Duty Truck Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 72 heavy duty truck manufacturers in the US produce heavy-duty trucks; heavy duty truck, tractor, and bus chassis; buses; and firefighting vehicles. Additional product categories include replacement parts and other types of trucks. Firms may also offer financing and leasing programs to support purchases.

Sensitivity to Freight Volume and Economic Conditions

The heavy duty truck market is cyclical and highly sensitive to global and national economic conditions.

Government Regulation

Environmental and safety regulations have forced heavy duty truck manufacturers to make substantial changes to their vehicles.

Industry size & Structure

The average heavy duty truck manufacturer employs less than 20 workers and generates about $333 million annually.

    • The heavy duty truck manufacturing industry consists of 72 firms that employ 34,000 workers and generate $24 billion annually.
    • The industry is highly concentrated; the top 4 companies account for more than 70% of industry revenue.
    • Large firms, including Navistar (TRATON Group) and PACCAR, may have operations and sell products in foreign countries.
    • In 2022, Freightliner had a 38% market share of Class 8 trucks, Kenworth had a 14%, Peterbilt 15%, International 13%, Volvo 11%, and Mack 7%, according to Wards Intelligence.
    • Firms that generate $100 million annually account for 23% of firms and 97% of industry revenue.
    • In 2022, there were 4.06 million Class 8 trucks in operation, up 2.3% from 2021, according to the American Trucking Association (ATA).
                            Industry Forecast
                            Heavy Duty Truck Manufacturers Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            May 20, 2024 - Sales Down, Shipments Up Year Over Year
                            • Heavy duty truck sales fell 11.4% in March 2024 compared to a year ago but were almost 8% up from the previous month, according to the Bureau of Transportation Statistics. Heavy duty truck sales grew 7.3% in the first quarter of 2024. Shipments of heavy duty trucks were 11.2% higher in March 2024 compared to the previous year and 5.2% higher than the previous month. Heavy duty truck inventories dropped nearly 5% in March 2024 compared to a year ago and were 1% lower than the previous month.
                            • US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
                            • Truck freight volume, an indicator of demand for heavy duty trucks, fell 21% in Q1 2024 compared to Q1 2023, according to the latest US Bank Freight Payment Index (FPI). The decline in truck freight volume in Q1 2024 was the most acute in the Northeast and Southeast, according to the report, which also revealed that spending by shippers declined in the first quarter. Commenting on the downturn, Bob Costello, senior vice president and chief economist at the American Trucking Associations, said, “Spending fell disproportionately to the drop in volume, which suggests downward rates pressure to start the year. Truck capacity remained above the amount of freight available. The degree to which this mismatch shrinks or expands will be important to watch throughout the year.”
                            • The for-hire truck tonnage index, an indicator of demand for heavy duty trucks, declined 2% in March 2024 compared to the previous month, according to an index released by the American Trucking Associations (ATA). The index had risen by 4% in February 2024. The for-hire tonnage index decreased 1% year-over-year in March, marking the 13th straight year-over-year decrease. According to ATA Chief Economist Bob Costello, “Tonnage in March suggests that truck freight volumes remain lackluster, and it is clear the truck freight recession continued through the first quarter.”
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