The prevailing uncertainty in the global macroeconomic environment has rendered competitiveness as crucial & key to maintaining & bolstering business profitability amid pressure on revenues across most industry players besides emphasizing the strategic significance of environmental responsiveness in the overall business strategy. Thus, most OEMs have been focusing on rationalization of their cost base by initiating efficiency programs aimed at generating crucial cost savings & technological innovation and moving towards a flexible cost & operating structure providing capability of being scaled up & down quickly, in-sync with the imminent market signals & feelers. The continued spate of investments towards R&D aimed at new product development and technological innovation across OEMs and sporadic global currency exchange rate fluctuations are some of the key, additional sources putting further pressure on business profitability.
Global Macroeconomic Environment continues to be Difficult & Uncertain:
The global macroeconomic environment continues to be difficult marked by slow pace of ongoing recovery in Western Europe from the debt crisis and a multitude of economic challenges in the United States. The EU economy finally made an egress from red by registering a 0.3% quarter on quarter GDP growth for Q2 2013 while the U.S. economy registered a decent 2.5% GDP growth for Q2. The growth projections for the second half of 2013 indicate towards a sub 2% GDP growth with the U.S. economy facing a host of fiscal & monetary policy challenges amid ongoing political tussle amongst the Republicans & the Democrats over handling of fiscal matters & Fed's indications towards tightening measures fomenting further uncertainty regarding the overall fiscal & monetary policy stance. The Chinese economy registered a strong 7.5% GDP growth for Q3 2013 driven mostly by infrastructural investments ensued by a difficult outlook for 2014 with shooting inflation level and Yuan being on a 20 year high against the USD that is likely to bring monetary policy measures to forefront over near term.
Global Trucking Industry making Steady Strides on Recovery Path:
The U.S. heavy truck market registered a 11% decline through the first half of 2013 & a 9% contraction through the end of September in 2013 while the European market contracted by 13% during H1 & by 8% through the first 8 months of 2013 despite significant order intake across OEMs in Q2 & Q3. In the U.S. market, the freight rates have remained tepid while the freight volumes have grown moderately during Q3 with spurt in consumer spending & strong housing starts that is likely to drive replacement demand across carriers & bolster class 8 truck production subsequently, especially, with improving corporate profits. The European market is likely to experience a spurt in deliveries during Q4 in wake of the upcoming Euro 6 emission standards likely to come into effect from January 01, 2014 besides the seasonal uptick in demand anticipated from November 2013 through January 2014. The OEMs, however, are maintaining a cautious stance with respect to the overall production rate with uncertainty over fiscal & monetary policy matters, especially, in the U.S. market.
Most Key Truck Markets Projected to Stay Flat in 2014:
Overall, the total market for heavy duty trucks in Europe is pegged to stay at 230,000 units for 2013 and is projected to stay flat in 2014 at the 230,000 level. The U.S. market, too, is likely to settle at 240,000 heavy duty trucks in 2013 and is projected to register a low, single digit growth for 2014 with slow pace of economic recovery amid continued fiscal & economic challenges and the anticipated onset of a high interest rate economic environment. Amongst emerging markets, Brazil is likely to lead the growth trend for 2013 with a low interest rate environment and strong, continued construction & infrastructure development activity contributing to a strong, double digit growth rate. Going forward into 2014, almost all BRIC markets are projected to stay flat for 2014 with respect to the heavy & medium duty truck segments.
Competitiveness & Environmental Responsiveness Key to Profitability:
Against the backdrop of this difficult & uncertain macroeconomic environment and demand slump across most key markets; there has been an overarching focus on maintaining & enhancing overall competitiveness and profitability besides a high degree of strategic responsiveness across OEMs. The report, thus, analyzes the competitiveness & degree of strategic responsiveness across these 7 leading global truck makers through a comprehensive Competitive SWOT analysis framework based on a thorough assessment of each player's business structure, operating cost base & financial structure, capital structure, key drivers of profitability, profitability bottlenecks & the entire gamut of business activities and strategies ranging from R&D, production, sales & distribution, sustainment support & aftermarket to product portfolio & market specific strategies. The report also analyzes initiatives, plans, strategies & strategic measures being adopted by OEMs to enhance competitiveness & efficiency and to offset global currency exchange rate fluctuations.
Relevance & Usefulness: The report will be useful for
- Strategic Planning, Competitive Analysis & Benchmarking Exercise
- Comprehensive Strategic & Competitive Assessment & Analysis for each key OEM
- Assessment of Structural Strengths & Weaknesses of each industry player
- Assessment of the overall degree of environmental responsiveness of each company
- Strategic Insights into key Business Strategies being pursued by each key OEM
- Gaining a Strategic Perspective on the Business & Strategic Outlook for all key players for 2014
- Gaining access to Key Industry as well as Market Trends, Insights & Growth Opportunities
- Analysis of Forces Driving as well as restraining the Industry & their overall Dynamics
-Strategic Market Outlook for 2014 – For North America, Western Europe & BRIC Markets
- Identifying & highlighting areas for Potential Strategic Changes, Adjustments & Realignment
The report would be essential for those having strategic interest in the Global Trucking Industry or any of these companies & will be especially useful for Key Decision-Makers, Top Management of Companies, OEMs, Suppliers, Distributors, Vendors and other Key Players in the Industry Value Chain as well as existing & potential Investors, industry & company analysts & those associated with the industry or any of these companies.
The report is comprehensive yet concise & compact at the same time; is custom-built for meetings & presentations, being built on the Microsoft PowerPoint platform; in addition, to being a ready self-reckoner as well as a quick reference guide driving, enabling & ensuring prompt and informed decision making.
Business Structure & Snapshot
c) Business Segments
f) Market Capitalization
g) Key Executives
h) Shareholding/Ownership Pattern & Structure
Section – 2
Financial Performance Snapshot – Q1-Q3 2013 Vs. Q1-Q3 2012, H1 2013 Vs. H1 2012 & 2012 Vs. 2011
- Sales Revenues Growth Trend
- Gross Earnings & Margin Trend
- Operating Earnings & Margin Trend
- Net Earnings Trend
- Profitability Growth Trend
- Profit Margin Trend
- Cash Flow from Operations
- R&D and CAPEX Trend
Section – 3
-Strengths to be Leveraged
-Weaknesses to be Ameliorated
-Opportunities to be Capitalized Upon
-Weaknesses to be Negated & Overcome
Section – 4
Competitive SWOT Analysis - For all 7 Truckmakers
-Comparative Analysis of Strengths
-Comparative Analysis of Weaknesses
Section – 5
Strategic Business Outlook for 2014 – For each OEM - Based on a Comprehensive Analysis of Business Strategies, Plans & Priorities
Section – 6
Global Trucking Industry – Force Field Analysis
Section – 7
Strategic Market Outlook – 2014
Section – 8
Key Industry Trends
Issues & Challenges
Strategic Industry Outlook for 2014