How is Isuzu Preparing for the Future of Truck Procurement?

The road transport industry is constantly evolving as market shifts, technological advancements and environmental regulations impact the future of the field. 

By staying responsive to the state of the industry, businesses can make smarter investments, improve operational efficiency and stay competitive in an evolving industry.

One company is ensuring it can maintain its competitive edge in time to come is Australian truck brand, Isuzu Australia, which released its latest ‘Future of Trucking Report’ this year. 

The report explores the latest insights from the industry and highlights how the company can adapt to the ever-changing nature of Australian truck procurement. 

In an evolving industry, the importance of understanding consumer behaviour emerged as a key method to adopt for the future and remain informed of the factors that are impacting Australian truck buyers.

Craig White, Head of Sales at Isuzu Australia explained: “Right or wrong, there’s genuine value for certain parties in understanding the data on who’s buying what next and why they are making those decisions.”

“It’s about far more than turning a buck as well, especially when it comes to working capital equipment such as trucks. 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.” ​ 

“Perhaps most critically though, 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.”

Meet Isuzu

Isuzu Australia is a renowned manufacturer and supplier of commercial vehicles and trucks in Australia.

The company supplies a span of durable and efficient transport solutions to businesses. Catering to several industries, the company offers a range of trucks, including light-duty to heavy-duty vehicles. 

Seeking to enhance operational efficiency for businesses across Australia, the company is well-known for its innovations like service agreements, whole-of-life cost management and turnkey trucks, as well as its market-leading approach to both support and service.

The Future of Trucking Report

Last released in 2020, Isuzu Australia’s Future of Trucking Report provides an exclusive insight into the state of the industry and allows the company to track the fluctuations across the road transport operating landscape.

The report provides key insights across five key areas - business sentiment, procurement, safety and technology, electric vehicles and truck maintenance - and features key findings from more than 1,300 road transport survey respondents.

In the four years since the last report was released, it spotlights the developing and familiar trends among the industry. Since 2020, the report highlights how the pandemic catalysed significant societal changes among the industry.

This year, the report explains how some areas of the industry have not changed. For example, the average of Australian’s truck fleet has remained at 14.4 years.

However, this has begun to raise environmental concerns as the older vehicles influence safety standards, fuel efficiency and emissions. In addition to this, Australia has also carries on to lag behind both the US and Europe in their attempts to reduce emissions and congestion. This is due to regulatory updates failing to change at the pace in which the industry does. 

Another familiarity that is highlighted is the interest among retail and fleet truck buyers, with 71% stating that they would prefer a pre-built truck.

The report highlights the key challenges that businesses and fleet respondents identified - 41% of businesses believed ‘tighter profit margins’ was the most significant challenge in the industry, compared to 49% of fleet respondents viewing the ‘cost of ‘fuel’ as a prominent challenge.

Sustainability emerges as a prominent driver of the future of Australian truck procurement, with many businesses becoming more conscious of incorporating eco-friendly efforts into its work. The report states that 91% of respondents said that they would consider a zero-emission strategy. 

Procurement developments

The procurement decisions of Australian businesses are evolving in response to market and regulatory pressures. These choices are related to workplace factors, such as retaining skilled employees. As a result of this, there is a preference for capital equipment that is user-friendly and efficient. Environmental concerns surrounding the drive towards zero-emission vehicles also emerge as a factor that is influencing purchasing. 

Many procurement decisions have begun to be influenced by factors such as payment preferences and the age of vehicles. The report highlights how trucks are replaced around every six years and heavy-duty and prime mover trucks are replaced sooner, at around 7.2 years. 

Craig White, Head of Sales at Isuzu Australia states how: "As we pick up developing trends throughout this ongoing research project, we can uncover the type of demand in the market and what are current ‘best practice’ approaches to satisfy it."

"Despite the climate of immense change across our sector, we note however that some things remain unmoved. Interestingly, the tenure of our truck parc, (across all segments), remains fairly static, with trucks working for an overall average of around six years before replacement options are considered.

"For majority of fleets and indeed many smaller operators, the ongoing maintenance, fuel and repair costs, (total cost of ownership), are huge factors in their procurement decision-making. After all, trucks are a working tool of trade – a means to an end."

"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 industries.

"Again, this is a trend we can see developing, with the curve continuing to track upwards. It’s easy to see why."

Craig continues later to explain how: "One thing is for certain, our most recent data paints the picture of an extremely smart, business savvy Australian truck buyer who is looking for a transport partner, not just a retailer of goods."

"The challenge remains then for customers to balance the most cost effective and efficient solution, backed by the right ongoing support."

The future 

Looking ahead to the future, the report spotlights the prominent role that electric vehicles will play in the next 10-15 years, highlighting how more businesses are becoming concerned about reaching net zero emissions. 

In the next 1-5 years, many respondents explained how they are more likely to adopt new technology due to rising safety concerns.

These technologies include:

• Blind spot monitoring
• Electronic stability control
• Lane keep assist 

According to Isuzu, the industry is ready for greater growth and innovation, with developments in technology and electric vehicle adoption helping to propel these efforts.

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