Australia’s perpetual truck sales market leader, Isuzu has offered some insights into the changing face of truck procurement via it’s latest ‘Future of Trucking’ report, which analyses the changing nature of Australian truck buyer behaviour and the forces that influence it.
Isuzu proffers that it’s perhaps a quirk of modern society, but it’s not lost on truck manufacturers like Isuzu, that there’s an entire industry built around understanding consumer behaviour.
The company says that whether it is right or wrong, that there’s genuine value for certain parties in understanding the data on who’s buying what next and why they are making those decisions.
The report was commissioned and has been explained by Isuzu Australia’s head of sales, Craig White, who took over this role in 2023.
White said that he utilised his strong bonds with the Isuzu Dealer Network and his broad industry experience to develop and manage the sales functions and strategy for both Isuzu Trucks and Isuzu Power Solutions brands
White’s industry knowledge is backed by a successful career in passenger and commercial automotive sales, including key accounts with companies such as Michelin Tyres,
White first joined Isuzu Australia Limited as zones sales manager for South and Western Australia in 2017, before taking on the role of national dealer sales manager in 2020, which led to him ascending to the head of sales role.
White says it’s about far more than turning a buck as well, especially when it comes to working capital equipment such as trucks.
The company said that in this world, ‘knowing your market’ is to understand the priorities of Aussie businesses that heavily rely on road transport for a huge range of outcomes.
It says that it’s about applying this market knowledge to develop and specify products that will lead to the best ‘whole-of-life’ equation for the consumer—ensuring the right solution is applied in the right area, at the right time and for the right result.
Isuzu reckons that it’s through this lens that its latest The Future of Trucking report comes up with some answers.
The company said that as it picks-up on developing trends throughout this ongoing research, it’ll have an even better read of the nature of demand in the truck market and what are the current ‘best practice’ approaches to satisfy it.
Despite the climate of immense change across the transport sector at the moment, the report notes that some things in the truck procurement world remain fairly unmoved.
Interestingly, Isuzu says the first ownership cycle of our truck park across all weight segments, remains static, with newly bought trucks on the road for an overall average of around six years before replacement becomes a genuine consideration.
The average age of our national truck fleet also remains much the same as it has for many years, with that figure currently hovering at 14.4 years. Comparatively, in some European countries such as Austria, that figure looks more like six years.
Isuzu says that, our national truck fleet average age isn’t ideal, from emissions reduction technology to fuel consumption, to safety standards and the attraction/retention of drivers. In stark contrast to Europe and the US, Australia’s relatively lethargic regulatory approach to wrangling emission and congestion reduction plays a key role here, something industry bodies have highlighted for years.
In the meantime, the company says that for the majority of larger fleets, and many smaller operations, the ongoing maintenance, fuel and repair costs or whole-of-life costs are the immediate factors in procurement decision-making.
It emphasised that trucks fterall, are a working tool of trade, in other words, a means to an end.
Isuzu said that its research shows that the single biggest driver of buyer behaviour in the Australian truck park, bar none, is maintenance costs. This is followed by business growth or expansion and thirdly, the end-of-life resale of that piece of equipment.
According to the truckmaker, these results 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, it says that collaborating with this consumer is about both service and product.
The company observed that for some time now it has 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 the sector.
It said that in line with previous findings, this is a trend it can see developing at pace, with the curve continuing to track upwards.
Isuzu said that it might be somewhat biased given its product range. However it added that there’s a compelling argument for the savvy application of turnkey products into established business models. The company added that the key, is ensuring that operations adapt to take advantage of the inherent benefits of these solutions and their whole-of-life efficiencies.
It said that 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.
The company said that introducing small changes across multiple vehicles can have a huge efficiency impact. Think standardised pallet dimensions for curtain side freight operations, uniform quick-release latches and lightweight side guards… the list goes on.
Isuzu believes that increasingly, Aussie businesses are rightly considering these details as part of a broader procurement strategy, but it doesn’t end there.
The provision of maintenance packages such as OEM service agreements are rapidly gaining popularity at the procurement stage, and for good reason according to the truck maker, saying that Aussie operators understand the premise of investing upfront in these arrangements, equating to increased uptime, reduced handling and ultimately, better margins.
Isuzu emphasised that, its feedback tells it 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.
The truck maker says that buyer behaviour in the truck world is far from a rapidly evolving beast, unlike the broader automotive industry. It says that its data supports well-entrenched views when it comes to procurement decision-making, though that’s not to say it is completely idle to the concept of change.
The company said that, nonetheless this poses the subsequent question of exactly which direction buyer behaviour will take in the future, especially as we move 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.