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Freight Trailer Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

IBISWorld Market Research

Melbourne, Australia (PRWEB) September 03, 2013

The Freight Trailer Manufacturing in Australia industry is highly dependent on its downstream industries. Although operators supply trailers to a number of diverse clients, the severity of the economic downturn and its flow-on effects have caused relatively slower growth in the industry. There are several channels through which this has occurred. Poor business sentiment has caused lower construction levels. Slower economic activity resulted in businesses carrying less stock, leading to a lower general need for transportation. Both of these factors translated into lower demand for new trailers. This was somewhat counterbalanced by a stronger demand from mining, which helped to drive revenue growth in the later part of the past five years. According to IBISWorld industry analyst Andrei Ivanov, “lower construction levels were also mitigated, to some extent, by increasing public spending on infrastructure projects”.

Overall, industry revenue is forecast to grow at annual compound growth rate of 2.1% over the five years through 2013-14 to reach $ 879.6 million. “However, this is calculated off a low base figure, and the industry did experience a significant downturn following the onset of the financial crisis,” says Ivanov. In 2013-14, the industry is forecast to grow by 4.3%. The industry has a medium share of concentration that belies the level of fragmentation that exists beyond the major players. The most significant operators in the industry are MaxiTRANS Industries Limited and Vawdrey Australia Pty Ltd.

The outlook for the Freight Trailer Manufacturing industry remains positive, but it is unlikely to achieve growth rates on par with those reached before the financial crisis. Mining will decrease as a source of industry revenue as more projects reach completion and come online. Furthermore, transportation of mined ore via rail infrastructure is more cost-effective and will present strong competition to trucking in this market segment. Lower interest rates are expected to bode well for construction. Residential construction is anticipated to grow in the short term. Commercial construction is set to follow as business sentiment improves and private investment gains steam. This will drive sales of new trailers and generate revenue for the industry. Favourable weather conditions in Australia, combined with droughts in the US and a growing demand for wheat in China, are expected to drive the demand for Australian grain. Increased production is anticipated to translate into higher demand for trailers as a means of transportation for bulk commodities.

For more information, visit IBISWorld’s Freight Trailer Manufacturing in Australia industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture trailers that are specifically designed for use on heavy-duty trucks. Trailer types vary based on size and purpose, and they include T-liners, flat-top and refrigerated trailers. This industry does not include light truck trailers or travel trailers.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

International Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Basis of Competition

Barriers to Entry

Industry Globalisation

Major Companies

Operating Conditions

Capital Intensity

Technology & Systems

Revenue Volatility

Regulation & Policy

Industry Assistance

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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