Truck Chassis Component Suppliers Musr Max. Efficiency
26 May 1998
Frost & Sullivan: Truck Chassis Component Suppliers Must Maximize Efficiency in All Aspects of Their Operations to Remain Competitive
MOUNTAIN VIEW, Calif., May 26 -- Suppliers and truck makers
possess no control over demand in the OEM chassis components market. Such
factors that do control the market include the state of the economy, demand
for freight transportation by truck, and the number of qualified truck
drivers. To succeed in this market, suppliers must be able to produce parts
quickly, have the resources to work with OEMs, and closely monitor the market.
According to strategic research conducted by Frost & Sullivan
(http://www.frost.com), #5163-18 North American Class 6, 7 and 8 Truck OE Chassis
Component Markets, sales are expected to weaken gradually from 1999 to 2001,
but growth should resume in 2002. Economic problems in Asia are the major
reason for the near-term lag in sales, but long-term trends are favorable.
Revenues are forecast to reach $2.9 billion in 2004.
Growth opportunities in this market are based on the ability to serve
truck makers on a global basis, and in a timely manner. "The trend is moving
toward a limited number of suppliers able to work with truck makers in the
implementation and development of new products, modules and sub-assemblies,"
says Joerg Dittmer, automotive industry analyst. The biggest growth segment
will be in ABS, since it is being phased in by Federal mandate.
Trends in the market include a shortage of qualified drivers, and Federal
regulations regarding weight limits and road damage caused by trucks. In
addition, component suppliers must meet truck makers' demands for low-
maintenance systems, lower prices and costs, more safety, and lighter
components.
"Competition is intense in every segment of the truck OE chassis component
markets," says Automotive Analyst Monica Williams. Although there is a limited
number of participants in the components market, truck makers utilize their
buying power to maintain competitive prices. The trend toward a limited
supplier base has led a number of suppliers to exit the industry. Remaining
companies have taken market share through joint ventures and acquisitions.
Consolidation is especially strong in complex product markets such as ABS and
axles.
Suppliers are compelled to maximize efficiency in all aspects of their
operations, due to the demands placed on them by truck makers and buyers.
Products must constantly be redesigned to reduce costs and improve
performance. Company size is also important because volume production allows
fixed costs to be spread over many units.
Frost & Sullivan's study, North American Class 6, 7 and 8 Truck Chassis
Component Markets, provides revenue and unit shipment estimates and forecasts
for the period 1994 to 2004. The report also presents market share estimates,
technology and market trends, competitive challenges and strategies. In
addition, this report is unique because it gives the breakdown, in terms of
market share, of proprietary suspension systems and those outsourced from
suppliers.
This report is part of a two-volume update of a 1995 Frost & Sullivan
report on truck component markets. The other current volume, #5162-18, is
entitled North American Class 6, 7 and 8 Truck OE Powertrain Component
Markets.
The companies participating in this market include: AlliedSignal Truck
Brake Systems, Chalmers Suspensions, Chicago Rawhide Manufacturing, Inc.,
Consolidated Metco, Inc., Dana Corporation, Eaton Corp./Truck Components
Operations, Freightliner Corporation, Gunite Corporation, Haldex Brake
Products Corporation., Haldex Midland Services, Hayes Wheels International
Inc., Hendrickson Truck Suspension Systems, Kaiser Aluminum Corporation,
Kenworth Truck Company, LucasVarity, Inc., Mack Trucks, Inc., Meritor
Automotive, Inc., Meritor WABCO Vehicle Control Systems, Midland-Grau Heavy-
Duty Group, Navistar International Transportation Corp., Neway Anchorlok
International, Reyco Industries Inc., Robert Bosch Corporation, WABCO
Compressor Manufacturing Co., Webb Wheel Products, Volvo Trucks North America,
Inc., Related Companies: AlliedSignal, Inc., American Axle and Manufacturing,
Inc., American Isuzu Motors, Inc., Bering Truck Corporation, Cummins Engine
Company, Inc., Dana Corporation, Delphi Chassis Systems, Echlin Inc., Ford
Motor Company, General Motors Corporation, General Motors, Granning Air
Suspensions Division of Fluidrive, Inc., Hino Diesel Trucks (U.S.A.), Inc.,
Hutchens Industries, ITT Automotive, Inc., LucasVarity Corporation,
LucasVarity plc, Mitsubishi Fuso Truck of America, Inc., Nissan Diesel
America, Inc., Oshkosh Truck Corp., PACCAR Incorporated, Peterbilt Motors Co.,
Ridewell Corporation, Robert Bosch Corporation, Robert Bosch GmbH, Sterling
Truck Corporation, Western Star Trucks, Industry Organizations: American
Automobile Manufacturers Association (AAMA), American Trucking Association,
Heavy Duty Manufacturers Association (MEMA), Institute of Transportation
Engineers, Insurance Institute for Highway Safety, MEMA (Motor Equipment
Manufacturer Association) ABS Education Alliance, National Truck Equipment
Association (NTEA), Society of Automotive Engineers (SAE), Transportation
Research Board, Industry Publications: Commercial Carrier Journal, Fleet
Owner Magazine, Heavy Duty Trucking, Logistics Management & Distribution
Report, Trailer Body Builders Magazine, Government Agencies: Department of
Transportation, Federal Highway Administration (FHA), National Highway Traffic
Safety Administration (NHTSA), U.S. Department of, Transportation (DOT), U.S.
Environmental Protection Agency (EPA).
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research include: Identification of industry challenges, market
engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help market participants
navigate successfully through the truck OE chassis component market.
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5776-18 U.S. Brake System Part Aftermarkets, and #5715-
18 North American Markets for Advanced Automotive Material Technologies, and
to support industry participants with customized consulting needs.
Report: 5163-18 Publication Date: June 1998 Price: $2950
For more information in the United States, please contact:
Kathleen Cooney
California
650.237.4385
650.903.0915 fax
kcooney@frost.com
or, visit our web site: http://www.frost.com