The single biggest driver of buyer behaviour in the Australian truck parc, bar none, is maintenance costs.
It’s one of the key findings made by Isuzu Australia Limited (IAL) in its The Future of Trucking Report.
The Report, released earlier in the year, is informed by the changing nature of Australian truck buyer behaviour and the forces that influence it.
According to Craig White, IAL Head of Sales, developing trends that are yielded by its ongoing research, will provide an even better read of the nature of demand in the truck market and the current best practice approaches to satisfy it.
“Interestingly, the first ownership cycle of our truck parc remains static, with newly bought trucks on the road for an overall average of around six years before replacement becomes a genuine consideration,” he noted in a recent opinion piece
For the majority of larger fleets, and many smaller operations, whole-of-life costs such as maintenance, fuel and repairs are the immediate factors in procurement decision-making.
This is followed by business growth or expansion and thirdly, the end-of-life of that piece of equipment.
These results, according to White, paint the picture of an extremely smart, business-savvy Australian truck buyer, keenly aware of equipment lifecycle equations and who is looking for a transport partner, not merely a retailer of goods.
“From an OEM standpoint, collaborating with this consumer is about both service and product,” he said.
“For some time now we’ve seen the meteoric rise in popularity of turnkey, pre-bodied, ‘ready to work’ trucks as a legitimate solution for a growing number of operators in varied applications across our sector.
“In line with previous findings, this is a trend we can see developing at pace, with the curve continuing to track upwards.
“We at Isuzu might be somewhat biased given our product range. However, there’s a compelling argument for the savvy application of turnkey products into established business models. The key, of course, is ensuring that operations adapt to take advantage of the inherent benefits of these solutions and their whole-of-life efficiencies.”
There will always be the core considerations of payload and load space requirements for any trucking application, although tweaking established norms to better suit pre-bodied products is where tangible business efficiencies can be realised according to White.
“Introducing small changes across multiple vehicles can have a huge efficiency impact,” he said.
“Think standardised pallet dimensions for curtainside freight operations, uniform quick-release latches and lightweight side guards.”
Australian businesses are increasingly considering these details as part of a broader procurement strategy.
The provision of maintenance packages such as OEM service agreements are rapidly gaining popularity at the procurement stage noted White.
“Aussie operators understand the premise of investing upfront in these arrangements, equating to increased uptime, reduced handling and ultimately, better margins,” he said.
“Importantly, our feedback tells us that service agreements afford time and energy for many businesses. Time to focus on sales and customer service quality, rather than the mechanics of keeping trucks in operation.
“Unlike the broader automotive industry, buyer behaviour in the truck world is far from a rapidly evolving beast. Our data supports well-entrenched views when it comes to procurement decision-making, though that’s not to say we’re completely idle to the concept of change.”
It nonetheless, according to White, poses the subsequent question of exactly which direction buyer behaviour will take in the future, especially as the market moves headlong into an era of new powertrain technology with just about every truck brand in the country soon to have a range of alternate products in the mix.
“The challenge remains then for brands such as Isuzu Trucks — to ensure the most cost effective and efficient solution is put forward, backed by the sort of support a purchase of this nature ultimately demands,” he said.
In other news, Alsco Uniforms has detailed its alliance with Isuzu.
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