From a high of 9.7% to a low of 3.1%, pre-tax profits varied widely among manufacturers in the work truck industry. The gap widened even more so when return on investment (ROI) between the typical manufacturer (6.8%) and the high-profit manufacturer (25.2%) was examined.
These are a few of the results reported by the National Truck Equipment Association (NTEA) in its 2007 Manufacturer Financial and Operating Report.
The report reviews the factors for success that distinguish high-profit firms from typical performance firms and concludes that no firm is perfect, but the most successful ones tend to fit a model that creates improved results for the company. The challenge is knowing how to build the model for the specific company, states the report. Results profiled are based on income statement, balance sheet, and operating data provided by manufacturers.
Participants have received a copy of the report free of charge, while it is available to non-participating NTEA members for $25 and non-members for $50. To purchase a copy of the report, visit NTEA.com or call 800-441-6832.