Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 915

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 915
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 •Consolidation increased as companies realized the benefits of merging, which include sharing technology, increasing market share, and gaining access to new markets. •The industry is also highly regulated, and standards and laws differ from country to country, which makes it difficult for manufacturers to enter new markets. •Mergers and acquisitions allow companies to enter markets they would not be able to enter on their own, causing barriers to entry and creating more challenging conditions. Key External Drivers 1.Global per capita income: Increased disposable income in 2023 will encourage consumers to purchase more goods, meaning businesses must invest in more trucks to transport these goods. 2.GDP of the BRIC nations: The BRIC nations, which include Brazil, Russia, India, and China, represent emerging economies with rapidly expanding industrial capacities. Decreased expansion and construction in these countries in 2023 will lead to falling demand for heavy-duty trucks, posing a potential threat to the industry. ____________ 7IBISWorld Industry Report C2532-GL, Global Heavy Duty Truck Manufacturing, May 2023. Annex D-1-8 3.Regulation for the global heavy duty truck manufacturing industry: The industry is sensitive to environmental and fuel-efficiency policies. Regulation for the Global Heavy-Duty Truck Manufacturing industry is expected to increase in 2023. 4.World price of crude oil: Lower oil prices in 2023 will support demand for newly manufactured heavy-duty trucks because the cost of owning and operating such vehicles falls. 5.Industrial production index of OECD countries: When the industrial production index of OECD countries rises in 2023, truck and bus manufacturers typically benefit, representing a potential opportunity for the industry. Key Success Factors 1.Effective cost controls: Close relationships with component suppliers and good distribution channels assist in controlling supply and demand chains, which is integral to success. 2.Use of most efficient work practices: Strong industrial relations can be achieved through a motivated workforce. It is important for an industry operator to motivate its employees through appropriate rewards and empowerment to lead to work practices that embrace efficiency and innovation. 3.Access to the latest available and most efficient technology and techniques: The degree of investment in technological improvements and product development is important for success. To succeed, investment in technology and research and development is essential. 4.Optimum capacity utilization: The ability to downsize quickly during periods of declining demand requires flexibility and is important for success. 5.Adaptability of operations to comply with social distancing protocols: Many companies temporarily suspended operations in