In the face of multidimensional challenges, the truck industry finds itself in need of immediate transformation, according to Truck 2020: Overcoming turbulent times for sustainable prosperity, a new study from IBM Institute for Business Value. Brand eminence is fading, sustainability concerns have created an urgent focus on hybridization and increased urban development is driving ever-increasing regulation. The industry is at a crossroads, unsure of its next steps toward globalization, say the study's authors.

According to the authors, five industry imperatives – in the areas of globalization, brand, technology, partnerships and the workforce – will define the path to prosperity for tomorrow's leaders:

• Resolve the globalization dilemma. Globalization is not the only strategy. Companies must pick a path to profitable growth – comprehensive global integration or regional specialization – and understand that either path requires major transformation.
• Redefine the brand. Identify future brand characteristics and develop a framework to support them.
• Enable technology. Innovation in technology is redefining all facets of the industry. Leaders must assess, prioritize and integrate technologies across the value chain.
• Enrich partnerships. Traditional partnerships will not suffice. Companies must evaluate and embrace partnerships both within and outside the industry. The truck ecosystem will thrive because of – rather than in spite of – a chaotic introduction of new players.
• Transform the workforce. Assess the workforce, identify gaps and prepare the organization for the transformation ahead.

The study suggests that there is a need and an opportunity for truck industry leaders to work with city governments and municipalities to develop green transit corridors in urban areas. It also suggests that these companies work to partner with local ports and logistics companies to integrate telematics across transport modes. As for hybrids, OEMs should also work with government entities to codevelop regulations, while also investigating other potential partnerships, such as with utility companies to create vehicle-to-grid (V2G) systems
 
Improving efficiency in vehicles will also be a significant focus area for the industry that will require innovative technology. Efficiency-related areas, such as engine and auxiliary systems and powertrain, are rated extremely high among aspects of the vehicle requiring innovation.

A combination of technologies in areas like anti-idling, alternative powertrains and retrofitting will lead to improvements in greener truck transport. The study notes that today’s low-hanging fruit of attaching stand-alone auxiliary power units (APUs) to vehicles to address anti-idling is not the long-term solution. The industry must continue to work aggressively toward hybrid integration to address the needs of 2020 and beyond.

The authors believe that by 2020, trucks could help substantially in leveling daily energy loads through V2G connections that allow power to be sold to the electrical power grid from a hybrid vehicle when it is not in use. For example, school bus fleets that are parked every afternoon could sell energy stored in the hybrid battery back to the grid or, as they are parked all summer, they could harvest solar energy. Similar scenarios could occur with numerous fleets that are idle for predictable amounts of time, including urban delivery, municipal, utility, construction and rental/lease trucks. For this to become reality, truck OEMs must forge the necessary partnerships outside their ecosystem.

To read the full study, click here.

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