Five leading players in the heavy/medium duty truck repair industry in the US are HDA Truck Pride, Fleet Services International, Penske, Gerber Collision and Lakeside International Trucks. Apart from Lakeside International Trucks, these competitors all have a nationwide footprint, and enjoy significant economies of scale. However, these top players vary significantly in their areas of focus, with companies such as HDA Truck Pride specializing solely in heavy/medium duty truck repairs while others such as Gerber Collision offer truck maintenance services as one specialty amid a broad array of automotive services.
Identification of Top 5 Industry Players
- According to IBISWorld, the two largest competitors within the US heavy/medium duty truck repair industry are HDA Truck Pride and Fleet Services International, which collectively hold less than 5% of the industry’s market share.
- In order to determine the next three top players in the market, the research team completed several strategies, including a review of the top competitors for each of these two industry leaders.
- Notably, publicly available information of the top competitors for HDA Truck Pride and Fleet Services International was deemed unreliable, given that most credible sources for this information were behind a paywall (e.g. Dun & Bradstreet), while other less credible sources could not be corroborated (e.g., Owler).
- As a separate strategy, the research team reviewed credible media sources (e.g., Fender Bender), industry reports (e.g. FTR Transportation) and information published by truck maintenance associations (e.g., HD Repair Forum) to locate other leading players in the industry.
- Through this process, the research team learned that the HD Repair Forum is led by an advisory board that consists of the “top heavy-duty collision repair shop operators” in the US.
- Based on this information, the research team reviewed the nineteen companies represented within the 2018 and 2020 HD Repair Forum advisory boards, and identified the top three based on total annual sales.
- By combining the initial research from IBISWorld about the industry’s top two players, with the three largest companies represented on the HD Repair Forum advisory board, the research team determined that the following five companies are the top competitors by revenue within the US heavy/medium duty truck repair industry: HDA Truck Pride, Fleet Services International, Penske, Gerber Collision and Lakeside International Trucks.
1. HDA Truck Pride
- HDA Truck Pride (website link here) is the largest independent provider of parts and maintenance for the commercial vehicle aftermarket in North America.
- As a privately-held company, HDA Truck Pride is not required to publicly report its annual revenue or any associated financial information.
- Notably, a review of HDA Truck Pride’s owned media (e.g., corporate website, press releases) as well as related press coverage (e.g., Truck Parts and Service) suggests that HDA Truck Pride does not publicly share information about its earnings.
- However, business data aggregators (e.g., Dun & Bradstreet, Manta, Infact) indicate that the company earns approximately $22 million per year from its truck parts and maintenance business.
- HDA Truck Pride has one of the largest geographic footprints of all heavy/medium duty truck repair operations in the US, with over 700 distribution locations and 400 service facilities across North America.
- Separately, the research team reviewed HDA Truck Pride’s store locator tool and confirmed that the company’s broad coverage of the continent includes a dense concentration of stores in all regions of the US.
- A review of HDA Truck Pride’s corporate website, press releases, executive statements and media coverage suggests that the company’s maintenance practices for heavy/medium duty trucks is distinguished by HDA Truck Pride’s level of technical competence.
- Notably, HDA Truck Pride asserts that its services go beyond simple parts delivery and repairs to include “solving problems and driving technical expertise.”
- In particular, HDA Truck Pride COO Tina Hubbard asserts that the company’s technical knowledge specifically related to heavy/medium duty trucks is a “major differentiator” for the business, most notably when compared with competitors whose offerings are not targeted at heavy/medium truck repairs.
- This commitment to providing a differentiated level of technical competency is further evidenced by the company’s annual Top Tech competition, which encourages the continued technical development and distinction of truck service technicians.
- Meanwhile, HDA Truck Pride also offers a unique suite of ancillary services for heavy/medium duty truck fleets, including “training, product support and marketing programs,” which appear aimed at supporting the larger business growth of its customers and developing long-lasting client relationships.
- Although HDA Truck Pride is a relatively recent newcomer to the heavy/medium duty truck maintenance industry (given that it was founded in 2010), the company’s most significant competitive advantage appears to be its scale and level of market saturation.
- Not only is HDA Truck Pride one of the largest heavy/medium duty truck maintenance providers in terms of annual sales, but its geographic footprint in the US is one of (if not the) most extensive in the country.
- Particularly amid the highly fragmented competitive landscape of this industry, HDA Truck Pride benefits from its position as one of the more ubiquitous and visible players.
- In parallel, recent statements by HDA Truck Pride’s leadership team (e.g., COO Tina Hubbard, Director of Program Management Jeff Tyler) indicate that the company is leveraging data and analytics to deepen its existing dominance in the heavy/medium truck repair market.
- Specifically, COO Tina Hubbard stated in 2018 that the company is looking to strengthen its competitive position and deepen its reputation for technical expertise by leveraging new capabilities around data acquisition and analytics.
- In addition to using big data to make more efficient and “educated decisions” in support of suppliers, customers and overall operations, HDA Truck Pride is also creating new data tools to improve its customer service offerings.
- For example, HDA Truck Pride recently introduced a new ability to sync customer data across the company’s broad network of locations, thereby providing regional and national fleet accounts with “centralized order, billing and payment options.”
2. Fleet Services International
- Fleet Services International (FSI) (website link here) is particularly unique within the heavy/medium duty truck repair industry, given that the company is a franchiser of independently owned and operated auto repair dealerships.
- An extensive review of FSI’s corporate website, franchise resources (e.g., Franchise.com, Franchise Gator), press coverage and business rating agencies (e.g., Better Business Bureau) indicates that FSI does not publicly report the company’s annual revenue.
- Notably, FSI only reports that potential franchisees must have a minimum of $50,000 in cash available to invest in starting a franchise, and that independent operators can earn a “six figure income” after an investment of “diligent effort.”
- In parallel, no major business data aggregators (e.g., Dun & Bradstreet, PitchBook, Crunchbase, Craft, ZoomInfo, Manta) currently cover FSI or provide any financial information related to the company.
- However, industry experts (e.g., IBISWorld) have determined that Fleet Services International is the second largest provider by sales of heavy/medium duty truck repair services in the US.
- Based on the annual revenue of comparably sized competitors in this industry (e.g., HDA Truck Pride), it appears likely that FSI and its independent operators generate approximately $20 million in annual sales just for the heavy/medium duty truck segment of their business.
- Although FSI does not publicly report the details of its franchisee network, the company’s marketing materials state that the company is represented by a large network of independently owned and operated dealerships “across the US.”
- In parallel, franchise resources report that FSI is strategic in systematically locating franchises throughout the country, adding that the company uses “territory studies” from “proprietary primary research” to distribute its franchisees across the US, and that FSI assigns “exclusive territories” for each operator.
- Meanwhile, a more detailed review of independent FSI dealers corroborates this reporting that FSI has a broad operator network across all US states/regions, including in Georgia, Texas, New Jersey, California and Pennsylvania.
- FSI publicly states that its independent dealers each receive operational training from one of the “automotive aftermarket’s most experienced teachers.”
- However, neither FSI nor franchise resources (e.g., Franchise.com, Franchise Gator) report that the company or its independent operators offer any specialized services for heavy/medium duty trucks.
- Notably, the most relevant FSI communications/advertisements on the subject of heavy/medium duty truck maintenance refer only to general expertise in the space of automotive and truck repairs.
- According to FSI, one of the company’s most significant competitive advantages is its association with Richard Petty, whose namesake and associated brands are reportedly recognized by 95% of Americans.
- Specifically, Petty’s Garage and its 60-year reputation of stock car maintenance have been co-branded with FSI Exclusive Dealers throughout the country.
- In parallel, FSI also benefits from the support and brand recognition of its over 30 national affiliates, including Advance Auto Parts, Automotive Resources International, Chevron, AutoZone and NAPA.
- However, it appears that FSI’s greatest competitive advantage may be its unique operating model, given that its network of independently owned dealers provides FSI a unique level of flexibility in establishing or dismantling service in any given area as demand dictates.
3. Penske (Premier Truck Group)
- Penske operates its retail commercial truck division under the brand name Premier Truck Group (PTG) (website link here).
- PTG represented $2.1 billion or 8.8% of Penske’s total revenue and $277.8 million or 8.0% of the company’s gross profit in 2019.
- Within PTG, service and parts represented 24% of the division’s revenue and 66% of the division’s gross profit.
- Based on this information, heavy/middle duty truck repair/parts generated $504 million in revenue and $183 million in profit in 2019.
- The calculation for this heavy/middle duty truck maintenance revenue is as follows: $2,100,000,000 * 0.24 = $504,000,000.
- The calculation for this heavy/middle duty truck maintenance profit is as follows: $277,800,000 * 0.66 = $183,348,000.
- As of the end of last year, the Premier Truck Group operated 25 locations across Texas, Oklahoma, Tennessee, Georgia, Utah, Idaho and Canada.
- In particular, PTG reports that its wreck repair centers are some of the largest in the southwest of the US.
- According to Penske’s 2019 annual report, PTG is known for providing a suite of offerings as well as a level of customer service that is commensurate with the larger Penske brand.
- In particular, PTG is differentiated by providing “premium” repair facilities combined with “superior customer service.”
- For example, PTG’s Dallas location is a “state-of-the-art” climate controlled facility that offers 80 full-service truck bays, a full suite of on-hand parts inventory, “around-the-clock” service and a wide range of customer amenities, including a TV lounge with HDTV theater seating, laundry and shower facilities and other recreational services for customers.
- Even with this differentiated customer experience, PTG’s biggest competitive advantage in selling heavy/medium duty truck maintenance services appears to be the fact that it offers a much broader array of truck services, including the sale of new and used trucks.
- Specifically, a large majority of PTG’s heavy/middle duty truck repair business is generated from those who purchase their vehicles from Penske, as evidenced by the fact that “customer pay work” represented 83% of PTG’s service and parts revenue in 2019.
- As such, it appears that PTG’s diversified business model (e.g., selling new/used trucks, maintenance, financing) helps the Penske division acquire, retain and monetize customers.
4. Gerber Collision
- Gerber Collision (website link here) is a subsidiary of Boyd Group Services that provides a broad array of automotive maintenance services.
- In 2019, the Boyd Group reported a “record revenue” of $2.3 billion and a gross margin percentage of 45.4%.
- Although Boyd Group does not publicly report the revenue of Gerber Collision, business data aggregators (e.g., ZoomInfo, Owler) suggest that this division earns between $362 million and $800 million annually.
- According to the Boyd Group’s 2019 annual report, Gerber Collision currently operates 567 locations across 28 states.
- These specifically are Michigan, Illinois, Florida, New York, Washington, Indiana, Georgia, North Carolina, Ohio, Arizona, Colorado, Wisconsin, Texas, Louisiana, Oregon, Tennessee, Maryland, California, Alabama, Nevada, Pennsylvania, Missouri, Oklahoma, Utah, Kentucky, South Carolina, Idaho and Kansas.
- While not all of these locations cater to truck maintenance, a fairly distributed network of Gerber Collision stores across these states (e.g., Cayce, SC; Portage, IN; Grand Rapids, MI; Wilmington, OH; Kalamazoo, MI) specifically advertise a specialty in heavy/medium duty truck repairs.
- Gerber Collision prominently advertises a broad array of general repair specialties on its corporate website, including auto body, hail damage and dent repair.
- While select locations (e.g., Cayce, SC) highlight “truck repair” as one of many “specialties,” an extensive review of Gerber’s website, annual reporting, media mentions and executive interviews suggests that the company does not highlight any unique services that are specific to its heavy/medium truck repair business.
- However, Gerber Collision’s repair offerings are accompanied by the company’s differentiated expertise in glass replacement, including windshield repair, windshield replacement and mobile repair.
- Recent remarks by Boyd Group CEO Brock Bulbuck suggest that the company’s competitive advantage lies in its dominance across the larger automotive repair marketplace.
- Notably, Repairer Driven News describes Gerber Collision and its parent company as one of the “nation’s largest consolidators” in the auto repair industry.
- As evidence of this reputation, Mr. Bulbuck stated in 2018 that the Boyd Group has a particularly active history of mergers and acquisitions, as well as a “healthy pipeline” of future targets.
- In particular, Boyd Group’s CEO suggested that the parent company held approximately 15% of the US auto repair market in terms of revenue, thanks to the company’s rapid geographic expansion through recent company purchases.
- When also considering Gerber Collision’s apparent lack of focus on promoting its heavy/medium duty truck repair services, it appears that the company’s current standing within the truck maintenance industry is meaningfully dependent on the reputation and market penetration of its overall automotive maintenance business.
5. Lakeside International Trucks
- Lakeside International Trucks (website link here) is a regional provider of new and used trucks, full service leasing, contract maintenance and daily commercial rentals for tractors, day cabs, sleepers, utility vehicles, reefers, step vans and construction vehicles.
- Lakeside International Trucks publicly states that the company earns an annual revenue of over $100 million, while business data aggregators (Dun & Bradstreet, ZoomInfo) indicate that Lakeside’s sales are as high as $159.3 million per year.
- Notably, as a private company, Lakeside is not required to publicly report its earnings, and a scan of the company’s owned media channels, business databases and media coverage suggests that the company does not share further details related to its earnings or profitability.
- Lakeside’s operations are currently limited to Wisconsin and Illinois, where the company operates eight locations, employs over 200 technical truck experts and has over 100 ASE certified technicians.
- Unlike more generalist competitors (e.g., Fleet Services International, Gerber Collision), Lakeside International Trucks clearly and solely specializes in heavy/medium duty trucks.
- Specifically in the area of maintenance and repairs, the company claims that its wide variety of services are unmatched in the region, and range from tailored preventative maintenance programs and DOT inspections to customized repairs, road service, towing and pick-up & delivery services.
- Meanwhile, this comprehensive suite of offerings and developed expertise in the area truck maintenance is also accompanied by a focus on customer service, with Lakeside stating that it offers customers unparalleled “quality products, superior service and responsiveness.”
- Lakeside International Trucks’ competitive advantage appears to lie in its relatively longstanding regional presence, specialization in heavy/medium duty trucks and comprehensive suite of offerings.
- With over 35 years of service and eight locations in the Wisconsin/Illinois area, Lakeside has a visible presence and established history working with local fleet operators and their drivers.
- The company’s regional leadership in heavy/medium duty trucks is further evidenced by Lakeside’s claims that it is “unequaled” by any truck dealership or service provider “in the region.”
- Meanwhile, Lakeside appears to further buttress its regional dominance by providing services and support throughout the entire truck lifecycle, ranging from initial sales and financing to repairs and resales.
- As such, Lakeside has established itself as the “round-the-clock transportation business partner” of heavy/medium duty truck operators in its area.