Interesting that on page seven, SNL says that the median age of four tonne plus trucks on the road is rising.
At a guess, I would have thought the reverse.
This must be because 'independents' - in some cases what in USA would be called 'mum and dad operators' - are not promptly or regularly renewing their vehicles, and it'll also be connected with the lack of the trucking industry consolidating.
Another company that I hold, LAU, has moved in a much bigger way into rail freight (railable containers) and implies that road freight is not hugely profitable. This doesn't surprise as competition is severe in the latter, and the price of diesel fuel has risen. Then there's the media articles about an alleged lack of the AdBlue additive.
The outlook for SNL looks great as sales of around A$162 million in FY 21 are set to rise to A$190-195 million in FY 22. That's great, although cost pressures from the lower A$ may be some of that.
Intriguing that it's yet to have a sales centre in Darwin or Port Hedland. But it knows 'the market' better than me, and these locations may play host to MultiSpares premises in time.
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