February 13, 2013
Rush Enterprises Inc. reported Wednesday record revenues of $3.1 billion with growth in the company’s aftermarket wing leading the charge.
Aftermarket services accounted for 63.4 percent of the company’s total gross profits in 2012 with parts, service and body shop revenues reaching a new record of $817.3 million – a 21 percent increase over 2011.
“Our commitment to providing the innovative solutions to service our customers’ unique business needs continues to drive our strong parts, service and body shop revenues and absorption performance,” Rusty Rush, Chief Executive Officer and President of Rush Enterprises, Inc. says. “Service needs from an aged fleet along with continued strong parts and service activity in the energy sector also contributed to the growth in our aftermarket revenues in 2012.”
Service technicians now account for more than 36 percent of Rush’s 4,400 person workforce, and the company continues to invest in training, certification and diagnostic equipment to support our service professionals, Rush added.
“Additionally, we continue to expand our fleet of mobile service units,” he says. “We now have approximately 200 mobile service units across our network and an additional 100 technicians supporting our customers at their shops or job sites throughout the country.”
Approximately 85 Rush technicians have been factory-certified to service natural gas fuel systems, an investment Rush believes will pay off if the market reaches his expectation.
“We believe natural gas-powered vehicles will grow in popularity and could represent up to 10 percent of the Class 8 new truck sales market in the next five years,” he says. “We continue to invest in the infrastructure to better serve our natural gas customers. We have made substantial investments at six Rush Truck Center locations to enable technicians to perform certified CNG and LNG service, with plans in place to bring additional facilities online as needed in key markets.”
The company’s Custom Vehicle Solutions (CVS) business continued to expand in 2012 with a second CVS location in Houston and expanded component, body and specialty up-fitting capabilities for this business.
“We also implemented dedicated pre-delivery inspection services in Yuma, Arizona for Peterbilt Model 320s built in nearby Mexicali,” Rush says. “We look forward to increasing CVS’s capabilities throughout the country as opportunities arise.”
With the age of fleet vehicles remaining a driving factor, Rush says the company expects parts, service and body shop revenues to remain strong through 2013.