TheTrucker.com

Berylls Strategy Advisors releases analysis of global trucking industry

Reading Time: 2 minutes
Berylls Strategy Advisors releases analysis of global trucking industry
Following several tumultuous years for the trucking industry, Berylls Strategy Advisors, a global management consulting firm focused on the automobility industry, has completed a Q1 2022 market analysis that reviews the challenges of 2021 while offering insights for the future.

DETROIT — Following several tumultuous years for the trucking industry, Berylls Strategy Advisors, a global management consulting firm focused on the automobility industry, has completed a Q1 2022 market analysis that reviews the challenges of 2021 while offering insights for the future.

Looking at global trucking companies including Daimler, Traton, Volvo and PACCAR, the analysis reveals several key findings about the state of the industry.

Overall, truck demand recovered quickly after the height of the COVID-19 crisis.

Cumulated order intakes and average book-to-bill ratios of 1.49 were at an all-time high in 2021.

However, order intake in Q1 2022 was down 11% year-over-year due to uncertain supply chains and massive inflation. Truck manufacturers continue to suffer from an undersupply of essential components, including semiconductors and wiring harnesses.

On the positive side, global truck players increased revenue in industrial business by nearly 25% compared to Q1 2021, and cumulative operating profit (adjusted) is 8.6% above Q1 2021.

“The situation on the global truck markets remains unusual,” Martin French, Berylls’ U.S. managing director, said.

“Demand is much higher than supply, and inflation is impacting the sales side of the business. While there are vehicle production hurdles to overcome, these are not the worst conditions to boost profits.”

Additional Key Findings
  • Supply chains remain uncertain: The Russian-Ukraine war has added more uncertainty to already stressed global supply chains, which have only begun to recover from the sharp market decline in Q2 2020. With Shanghai being locked down due to Covid-19, there are significant risks looking forward.
  • No signs of weakness on the demand side: Although there are signs of an economic slowdown on the horizon, the need for new trucks remains considerably high. There is massive pent-up demand and a huge order backlog — 2022 production is sold out.
  • German OEMs have work to do: While Volvo and Paccar are very profitable with double-digit margins, Daimler and Traton need to improve performance, namely for Fuso, MAN and Navistar, which are below 5% return on sales.

Click here to review the study in its entirety.

 

The Trucker News Staff

The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.

Avatar for The Trucker News Staff
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
For over 30 years, the objective of The Trucker editorial team has been to produce content focused on truck drivers that is relevant, objective and engaging. After reading this article, feel free to leave a comment about this article or the topics covered in this article for the author or the other readers to enjoy. Let them know what you think! We always enjoy hearing from our readers.

COMMENT ON THIS ARTICLE

Clark Transfer