ATLANTA, GA — Fuel efficiency and environmental concerns are expected to carry increasing weight in fleet purchasing decisions over the next decade, according to a new study, edging out the importance of brand value.
But truck manufacturers that shed brand images focused on the vehicle in favor of one tied to addressing their customers' transportation challenges stand to benefit 10 years from now, according to "Truck 2020: Transcending Turbulence."
The report, produced by IBM's Institute for Business Value, is based on interviews with 91 global executives that represent all aspects of the truck value chain. It identified five actions to help the industry transform itself to meet the challenges posed by the economic recession, compliance and globalization.
"IBM's study exposes major myths like brand is the way people buy and that truck pollution is inevitable," Sanjay Rishi, IBM's vice president and global automotive industry leader, said in a statement. "The fact is the trucking industry has a tremendous opportunity to lead in fuel efficiency. Increasingly fleet owners choose cleaner, more cost effective trucks that also have advanced systems that make transport more efficient. The brand needs to be beefed up significantly to provide buyers the services and add-ons they demand."
Among the findings is the emergence of technology as a dominant external force impacting the industry, both now and in 2020. Technology will be key to addressing fuel efficiency and environmental concerns, in addition to aiding safety, serviceability and compliance, while those truck makers that integrate technologies across the value chain lead the sector.
Telematics, for example, can be used to help customers trim service time, while hybridization will allow them to reduce their fleet greenhouse gas emissions and related fossil fuel use.
In addition to redefining their brand and enabling technology, the study also advised the industry to pursue non-conventional partnerships, overcome the challenges of globalization and transform the workforce.
Globalization is but one business strategy available to truck manufacturers, while embracing non-tradition partnerships will allow the industry to take advantage of new players. Meanwhile, truck manufacturers should identify gaps in skills in the current workforce and take steps to prepare for the transformation.
Image licensed by Flickr user greeblie.