Medium- and Heavy-Duty Specialty Truck Markets Struggle

TORONTO, Nov. 19 -- The current U.S. economic slowdown will restrain demand for some medium- and heavy-duty specialty trucks, but trucks that serve the basic needs of municipalities will help prevent significant loss of market share.

End-users in construction, mining, and logging are tightening their budgets, reducing capital expenditures, and restricting orders for trucks. However, the need for garbage, beverage, utility, and emergency vehicles will keep overall demand strong, ultimately enabling the industry to weather economic trends.

New analysis from Frost & Sullivan (www.transportation.frost.com ), North American Medium- and Heavy-Duty Specialty Truck Markets, reveals that this industry generated revenues totaling $10.21 billion in 2000. Although the economic slowdown could restrain revenues through 2001, markets for chassis, construction body, urban service body, distribution body, off-road, and other trucks will rebound.

``Some segments of the specialty truck market are not immediately affected by the cycles of the economy,'' says Frost & Sullivan Industry Analyst Alfonso Corredor. ``The current downturn of the North American economy has not yet reduced demand for urban service trucks like refuse collectors, sweepers, sewer cleaners, firefighters, and ambulances.''

During fierce economic times the rudimentary requirements of consumers are the last to be affected. During the current downturn, consumption and consumer needs have not experienced dramatic change.

``A large portion of sales to municipalities and budgets are still strong,'' says Corredor. ``National and local governments are still pouring a substantial amount of resources for replacement and increases of urban equipment.''

Segments that will be most impacted are those that meet construction needs. Dumps, mixers, and cranes could see lower demand in the short term. Nevertheless, all segments are expected to recover within a few years.

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the medium- and heavy-duty truck industry. These market-specific awards are presented to: Mack Trucks, Inc. and Oshkosh Truck Corp.

A key list of industry participants include Advance Mixer; Air-Flo Manufacturing Co., Inc.; Almonte Fire Trucks, Ltd.; Alum-Line, Inc.; American Fleet Services, Inc.; American LaFrance Corp.; Arrow Tank & Engineering; Auto Crane Co.; Beall Corp.; Braun Northwest, Inc.; Cancade Co., Ltd.; Collins Industries, Inc.; Continental Manufacturing Co., Inc.; Crestline Coach, Ltd.; Crysteel Manufacturing, Inc.; Danzer Morrison, Inc.; De La Rosa Manufacturing, Inc.; Elgin Sweeper Co./Federal Signal Corp.; Emergency One, Inc./Federal Signal Corp.; Equipment Innovators; Excellance, Inc.; FeatherLite, Inc.; Federal Signal Corp.; Feterl Manufacturing Co.; Fibre Body Industries, Inc.; Freightliner, L.L.C.; General Motors Co.; Grumman Olson Industries; Guzzler Manufacturing, Inc./Federal Signal Corp.; Hackney & Sons, Inc.; Heil Environmental Industries, Ltd.; Henderson Manufacturing, Inc.; Hercules; HME, Inc.; International Truck and Engine Corp.; Iowa Mold Tooling Co., Inc.; J&J Truck Bodies & Trailers; Jerr-Dan Corp.; Kenworth Truck Co.; KME Fire Apparatus; Knapheide Manufacturing Co.; Kovatch Mobile Equipment; Labrie Equipment, Ltd.; Leach Co.; Lodal, Inc.; London Machinery, Inc.; Luverne Fire Apparatus/Spartan Motor, Inc.; Mack Trucks, Inc.; Maintainer Corp. of Iowa, Inc.; Marion Body Works, Inc.; McClain Industries, Inc.; McNeilus Companies, Inc.; Mickey Truck Bodies, Inc.; Miller Industries, Inc.; Morgan Corp.; Ochoco Manufacturing Corp.; Oshkosh Truck Corp.; Parkhurst Manufacturing Co., Inc.; Peterbilt Motors Co.; Pierce Manufacturing; Quality Manufacturing, Inc./Spartan Motor, Inc.; Reiten, Inc.; Road Rescue, Inc./Spartan Motors, Inc.; Saulsbury Fire Equipment/Federal Signal Corp.; Seagrave Fire Apparatus; Smeal Fire Apparatus Co.; Spartan Motors, Inc.; Sterling Truck Corp.; Superior Emergency; Vehicles/Federal Signal Corp.; Supreme Corp.; Terex Corp.; Tri State Tank, L.L.C.; Vactor Manufacturing, Inc./Federal Signal Corp.; Vaxjet/Federal Signal Corp.; Volvo Trucks North America; Walinga, Inc.; Wayne Engineering Corp.; Western Star Trucks; Wheeled Coach Industries/Collins Industries; and Wilcox Bodies, Ltd.

Frost & Sullivan is a global leader in strategic market consulting and training. This ongoing research is part of the Automotive OE Subscription, which also includes market analyses on North American Class 6, 7, and 8 Truck Powertrain Component Markets and North American Class 6, 7, and 8 Truck Chassis Component Markets. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

North American Medium- and Heavy-Duty Specialty Truck Markets Report: A082-18