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Truck Manufacturing market continues to fluctuate
The global truck manufacturing market produced fairly low growth in 2012. However the market has been fluctuating in recent years and this growth perhaps indicates that the market is beginning to move out of the economic difficulties seen recently. This is not the case world-wide with some markets producing more reliable growth than others. The truck manufacturing market is heavily reliant on commodity prices, and increases seen in the cost of products such as aluminum can have a direct impact on the cost price of finished truck products.
The global truck manufacturing market grew by 2.6% in 2012 to reach a value of $591.4 billion, which represents a CAGR of 5.5% for the period 2008-2012. Industry volumes increased in a moderate stable fashion in 2012.
The Americas is the second largest regional market representing a 39.9% of global truck production. Some of the leading players in the USA were hit very heavily by the global recession and in 2009 and volumes decreased significantly, with some of the players even entering bankruptcy proceedings and massive restructuring. However there appears to have been a solid recovery with even GM one of the worst hit players producing good growth in the region.
The Asia-Pacific region remains the largest regional market representing 45.1% of the total global market, with China being the largest producer in that market. Within this however there are large differences between countries, as markets such as China and India continue to produce large volumes of trucks and good growth, in contrast with the Japanese market which has experienced difficulties in recent years.
The European market is continuing to experience difficulties in recover and dropped into decline once again in 2012. The region only accounts for 13.0% of global production as many of the largest manufacturers have moved away from this more expensive manufacturing area and into cheaper labour and commodity zones in the Asia-Pacific and Americas regions.
The truck manufacturing market is becoming increasingly globalised, following in the footsteps of the passenger car market and this means that some of the largest global players have positions in numerous different regional markets. In terms of both production and sales, companies are becoming increasingly aware of alternative markets in emerging economies and indeed some are well established in the more developing countries with companies constantly looking for new areas of growth. Some of the largest western markets have been struggling in recent years, in particular Europe has had major difficulties and we have seen manufacturers moving their core centres of manufacture away into more profitable and reliable markets. There continues to be large scale partnerships between localised and global players as they use each other’s positions to make economy savings or enter a target market.
Find this interesting? For more, read our ‘Market Research Report on Truck Manufacturing‘ to know the latest industry trends and analysis.