Overall, the USA economy is still seeing a slow recovery from the 2008 recession, but the work truck industry is seeing faster than expected growth, due in large part to the replacement of aging fleets. Fleet turnover in interstate shipping companies, international logistics and among government agencies will be driving growth beyond that seen in many other economic sectors.
In particular, chassis leasing companies will likely see an increased demand for their equipment as transporters update to newer technologies, lighter equipment and transition their fleets to newer more fuel efficient designs. Steve Latin-Kasper of the NTEA said, “Whatever goes on in the overall economy, the work truck sector will be better.” This is because commercial, industrial, government and private sector fleets will gradually be switching to improved chassis designs with safer more user friendly features.
Specifically, government-owned fleets may see more rapid turnover than in recent years as a result of stricter protocols for maximum vehicle age. These protocols are in effect for all types of chassis. However, government buyers must wait for specific conditions and requirements to be met by their suppliers before they can make a purchase. Thus, long periods of low buying activity may precede a period of extended equipment acquisition. It’s during these times of acquisition that chassis leasing becomes an option for government fleets, which may otherwise prefer to purchase the equipment outright.
These optimistic predictions must be tempered by economic data which may impact the industry and the speed of growth. A decrease in consumer spending may slow business, and government agencies are also seeing cutbacks. Because of this, when permissible, average fleet ages tend to increase. So, while new equipment purchases may be slow, chassis leasing should increase in popularity as companies and governments look to realize the benefits of fleet improvements with fewer dollars.
Penn Intermodal Leasing maintains one of the most diverse and youngest average aged fleets of special purpose chassis in the country. Penn is well positioned to offer timely leases on well-maintained chassis. Through leasing, equipment purchases don’t require a large capital outlay which facilitates cash flow and enables the pursuit of new business opportunities. Call Penn for the right chassis and a chassis lease plan to fit your needs.
April has been working with Penn Intermodal’s Sales and Operations teams to educate clients on the benefits of leasing chassis for bulk liquid storage and transport since 2012.