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 76 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 $316 million annually.

    • The heavy duty truck manufacturing industry consists of 76 firms that employ 30,000 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

                            Jan 10, 2024 - ATA Truck Tonnage Index Dips
                            • The for-hire truck tonnage index, an indicator of demand for heavy duty trucks, declined 1% in November 2023 compared to the previous month, according to an index released by the American Trucking Associations (ATA). The index had risen by 0.8% in October 2023. The for-hire tonnage index decreased 1.2% year-over-year in November, marking the ninth straight year-over-year decrease. According to ATA Chief Economist Bob Costello, “We continued to see a choppy 2023 for truck tonnage into November. It seems like every time freight improves, it takes a step back the following month. While year-over-year comparisons are improving, unfortunately, the freight market remains in a recession. Looking ahead, with retail inventories falling, we should see less of a headwind for retail freight, but I’m also not expecting a surge in freight levels in the coming months.”
                            • US manufacturing activity contracted in December 2023, falling below the baseline for growth for the fourteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.4% in December, up from the 46.7% recorded in November. A reading above 50% indicates manufacturing expansion. December’s New Orders Index remained in the contraction zone at 47.1%. The December Production Index was 50.3%, up from November’s 48.5%. Only one manufacturing industry tracked by the ISM reported growth in December: Primary Metals. The industries reporting contraction in December were Printing & Related Support Activities; Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; Textile Mills; Petroleum & Coal Products; Paper Products; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Miscellaneous Manufacturing; Furniture & Related Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Chemical Products.
                            • Ongoing demand, higher infrastructure spending, expanded fuel-efficient offerings, and improved supply chain management are expected to support growth in the heavy duty truck manufacturers industry, which is projected to grow at an over 4% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is comparable to the projected growth of the overall economy. The forecast follows several years of sales volatility during the pandemic in 2020 (-35.8%), 2021 (21.5%), and 2022 (21.4%).
                            • Holiday spending is expected to grow 3-4% in the US in 2023 compared to 2022, according to a National Retail Federation (NRF) forecast reported in FreightWaves. The 2023 projection of between $957.3 billion and $966.6 billion is growing at a slower pace than in the pandemic era but is in line with the annualized increase of 3.6% from 2010 to 2019. According to NRF President and CEO Matthew Shay, “It is not surprising to see holiday sales growth returning to pre-pandemic levels. Overall household finances remain in good shape and will continue to support the consumer’s ability to spend.” Online spending, which is included in the total, is expected to grow between 7-9% in 2023 to a total range of $273.7 billion and $278.8 billion.
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