Heavy load: The volatile price of crude oil is forcing the industry to develop new technologies

In the five years to 2017, revenue for the Truck and Bus Manufacturing industry is expected to increase, bolstered by a resurgence in trade activity. As trade activity trends higher, downstream freight operators have responded by increasing their vehicle fleets, lifting demand at the manufacturing level. The depreciation of the Canadian dollar relative to other currencies is expected to catalyze trade flows, particularly exports. The volatile price of crude oil, a major input for truck and bus users, along with emissions regulations, is forcing the industry to innovate and develop new engine technologies. Potential threats exist that may inhibit industry growth over the next five years...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • Trade activity with the US is anticipated to increase, which will bolster demand for freight transportation
  • Domestic emissions regulations are harmonized with US emissions standards
  • Profit margins are expected to slightly rise
  • Industry Report - Starting a New Business Chapter

    The Truck and Bus Manufacturing industry has many barriers to entry that can discourage new participants. For example, high capital investment is needed to acquire the necessary infrastructure and equipment to set up operations. Additionally, as regulation is expected to increase in the future, compliance costs associated with new environmental regulation standards will deter potential entrants. As a result, industry operators are forced to increase their R&D expenditure as emissions standards rise.Other potential barriers include obtaining a reliable supply network. Being a manufacturing industry, it is crucial to have relationships with suppliers as well as close relationships with end users. Whe...purchase to read more.

    Additional Insights for the Truck & Bus Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Truck & Bus Manufacturing Industry are

  • Effective cost controls
  • Establishment of export markets
  • Use of most efficient work practices
  • IBISWorld analysts also discuss how external factors such as Demand from truck transportation and Canadian-dollar effective exchange rate index in the Truck & Bus Manufacturing industry impact industry performance..

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    What's in this report

    What is the Truck & Bus Manufacturing Industry?

    This industry primarily manufacturers heavy-duty vehicles and heavy-duty vehicle chassis for highway use.

    Industry Products
  • Class 8 trucks
  • Trucks for classes 4 to 7
  • Buses including military and firefighting vehicles
  • Special purpose trucks
  • Industry Activities
  • Manufacturing heavy-duty trucks
  • Assembling complete heavy-duty trucks
  • Assembling complete buses
  • Assembling heavy-duty motor vehicles for highway use
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from truck transportation
  • Canadian-dollar effective exchange rate index
  • Total trade value
  • World price of crude oil

  • Current Performance
  • Weak currency bolsters exports
  • Harmonized regulation, oil trends
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving conditions drive demand
  • US reliance, regulatory outlook
  • Trade trends
  • Table: Truck & Bus Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Truck & Bus Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada
  • Local Specialized Freight Trucking in Canada
  • Tank & Refrigeration Trucking in Canada

  • Key Selling Industries
  • Auto Parts Wholesaling in Canada
  • Automobile Electronics Manufacturing in Canada
  • Automobile Engine & Parts Manufacturing in Canada
  • Tire Wholesaling in Canada
  • Truck, Trailer & Motor Home Manufacturing in Canada

  • Products & Services
  • Class 8 trucks
  • Trucks for classes 4 to 7
  • Buses including military and firefighting vehicles
  • Special purpose trucks
  • Chart: Truck & Bus Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Short-freight truckers
  • Long-freight truckers
  • School bus operations
  • Other bus operations
  • Waste-collection companies, government and other markets
  • Chart: Major Market Segmentation for the Truck & Bus Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Truck & Bus Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Truck & Bus Manufacturing Industry

  • Industry Globalization
    PACCAR Inc., AB Volvo,
  • Table: PACCAR Inc. - financial performance
  • Table: AB Volvo - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Truck & Bus Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Truck & Bus Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Canadian-Dollar Effective Exchange Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class 6 Trucks
  • Trucks with a gross vehicle weight rating between 19,501 and 26,000 pounds.
  • Class 7 Trucks
  • Trucks with a gross vehicle weight rating between 26,001 and 33,000 pounds.
  • Class 8 Trucks
  • Trucks with a gross vehicle weight rating above 33,000 pounds.
  • Gross Vehicle Weight Rating (Gvwr)
  • A measure of the allowable weight of a truck, including its trailer and cargo.
  • Heavy Trucks
  • Trucks categorized as either Class 6, 7 or 8.
  • Prebuy Activity
  • Purchases in excess of current demand, usually in anticipation of regulatory-related price increases.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Truck & Bus Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Truck & Bus Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Truck & Bus Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Truck & Bus Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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