Australia’s heavy vehicle manufacturing and supply sector is facing some of its toughest trading conditions in recent years, according to HVIA’s inaugural ‘Industry Snapshot’ released in October 2026, which reveals weakening business sentiment, rising input costs and growing uncertainty across the sector.
The new national survey of HVIA members found more than half of respondents reported worsening business conditions over the past 12 months, while 42 per cent experienced declining sales or revenue.
The findings – available for download here – also point to a significant impact from the 2026 Middle East conflict, with 61 per cent of respondents reporting deteriorating business conditions since the conflict began.
Above: How have your input costs changed since the beginning of the Middle East conflict?
Australia’s heavy vehicle industry employs more than 70,000 people and supports a national truck fleet of approximately 600,000 vehicles, making it a critical enabler of economic activity and freight movement across the country.
HVIA’s membership includes every truck OEM, top 50 trailer manufacturers, every major component supplier plus heavy vehicle dealers, technology, equipment and component suppliers, segments of the repair and maintenance industry, and engineers and consultants that support each of these businesses.
Todd Hacking, Chief Executive Officer of HVIA, says the results reflect an industry managing significant economic and geopolitical pressures while continuing to support Australia’s freight task.
Above: Which input costs have grown the most since the beginning of the Middle East conflict?
“Australia’s heavy vehicle industry is a critical enabler of economic activity, employing more than 70,000 people and supporting a truck fleet of around 600,000 vehicles across the country. Yet businesses are confronting rising costs, uncertainty and increasingly cautious customers,” he says.
The report found the cost of freight and logistics, raw materials and fuel were exerting the most pressure on businesses. Almost 45 per cent of respondents reported input cost increases greater than five per cent since the commencement of the Middle East conflict, with many also citing shipping disruptions, supplier delays and overseas tariffs.
Despite these challenges, the survey also revealed confidence in the sector’s longer-term prospects. More than one-third of respondents expect employment growth over the next 12 months, while more than half plan to increase capital investment, particularly in product development, technology and digital systems, equipment upgrades and workforce capability.
Above: Do you expect a growth or decline in employee numbers (FTE) over the coming 12 months?
“The survey results demonstrate resilience alongside the challenges. Many businesses are looking to invest, innovate and expand despite difficult trading conditions. This underlines the importance of stable government policy settings that encourage investment and strengthen Australia’s manufacturing and supply-chain capability,” Hacking says.
While many businesses reported difficult trading conditions, the survey suggests the industry remains focused on growth, innovation and investment.
The findings reinforce the need for policy settings that improve investment certainty, address rising input costs and strengthen the resilience of Australia’s manufacturing and supply-chain sectors.