Berylls Strategy Advisors Releases Market Analysis of Global Trucking Industry

Findings highlight supply-chain challenges, growing demand, and more

DETROIT, May 24, 2022 /PRNewswire/ -- 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," said Martin French, Berylls' U.S. managing director. "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."

• 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% RoS.

Click here to review the study in its entirety.

The Berylls Group's services are fully dedicated to the automotive industry. Our global experts understand the industry's key challenges and are developing ways to achieve sustainable success in the automobility eco system. Using innovative & digital strategies, our professionals are networking across our four specialized units to offer our clients end-to-end support, from strategy development to implementation.  For more information, visit https://www.berylls.com/en/.

The Berylls Quartet includes:

• Berylls Strategy Advisors – Our top management consultants' expertise extends across the complete value chain of automobility – from long-term strategic planning to operational performance improvements. The team has broad experience in automotive thought leadership, profound industry knowledge, innovative problem-solving competence, and entrepreneurial thinking.
• Berylls Digital Ventures – The development of digital products and the implementation of new business models are increasingly required to drive the realization of our clients' strategic concepts. The BDV team works with clients end-to-end, investing in promising startups and bringing digital, turn-key ready solutions to market.
• Berylls Mad Media – These experts develop and operate tailored solutions, including data-driven marketing, integrated service designs and IT architectures. We strengthen customer loyalty, market exploitation, and profitability – taking vehicles and services to market digitally.
• Berylls Equity Partners – A private investment company, supported by strong anchor investors and pursuing an entrepreneurial approach. We carefully select, acquire, and improve operationalcompanies with value potential in the mobility industry.

SOURCE Berylls Strategy Advisors