Understanding market trends for vocational vehicle equipment to support a client’s investment in a truck and bus body manufacturer.

The Situation
  • A Client engaged in manufacturing commercial vehicle equipment was interested in investing in a manufacturer of truck and bus bodies to grow their product portfolio and expand to adjacent markets. Stax was hired to validate this investment.

The Assignment
  • To carry out interviews with critical industry players such as distributors, manufacturers, truck dealers, industry experts, and compile a robust fact base.

  • To analyze the data and provide perspective regarding the vehicle attachment equipment market, the value chain, major trends and dynamics, and potential implications to our Client.

The Benefits
  • We highlighted that key opportunities our Client could benefit from investing in firms involved in both manufacturing and distribution.

  • Through this multi-pronged investment approach our client could broaden product offerings and gain access to a wider distribution network, for new as well as existing product lines.

The Finding
  • We identified that the demand for vehicle attachment equipment was steadily growing since the recession, though demand had not reached pre-recession levels.

  • Our findings on market trends and dynamics indicated that the importance—and by extension, power—of equipment manufacturers in the equipment value chain was increasing, while the role of traditional distributors was diminishing.

  • A causative factor here was equipment manufacturers increasingly integrating vertically and serving customers directly.