Commercial vehicle manufacturers are facing significant change both in markets and supply chains, according to a study by Ernst & Young which identifies six “mega-trends” that will drive the industry.
The study, Mega trends shaping the global commercial vehicle industry, looks at how stakeholders across the commercial vehicle value chain are likely to be impacted by trends shaping the industry – from the operating environment, preferences relating to fleet operators and competition, to distribution channels and the supply chain.
Key trends include:
* Truck owners demand technology solutions enabling greater transparency into operations, vehicle and driver management
* Regulations force truck owners to change operating and buying behavior while driving Original Equipment Manufacturers (OEMs) to offer cleaner and safer commercial vehicles
* Stagnation of developed markets and cyclicality of demand driving OEMs to expand geographic footprint and review operational efficiency
* OEMs reinvent product portfolio to increase “glocalization” (creating local products and brands), expand presence across truck segments and offer customized value added services to improve retention and diversify revenue sources
* Tier 1 suppliers increase business resilience by offering innovation and operational flexibility for OEMs while simultaneously expanding aftermarket and fleet offerings
* Globalisation and economic uncertainties expose the commercial vehicle industry to supply chain, manpower and economic risks
Jeff Henning, global automotive markets leader, Ernst & Young, said: “Companies across the commercial vehicle value chain need to assess how well they are prepared to respond to the evolving industry trends so they can capitalize on the opportunities that lay ahead. The ability to innovate and be flexible in a constantly changing environment will be crucial for future success.”