Change Brings New Life to Leasing

The explosive growth that marked the truck leasing business in the 1970s and the post-deregulation ’80s is over. Leasing has essentially leveled off, as measured by the number of vehicles, but the business remains a strong and viable industry, executives say.

Lessors have been able to hold their own by becoming not only suppliers of rolling stock, but providers of maintenance, training and a whole range of services to trucking firms.

Companies in the Truck Renting and Leasing Association are “growing their businesses by showing their customers how to be more productive,” said Mike Payne, president of the organization.

According to a TRALA survey, equipment leasing and related services generated more than $15.4 billion for the entire leasing industry. This compares with $13.7 billion in 1996 and $10.6 billion in 1994. The figures exclude finance leasing, which is a different kind of transaction.

To some extent, the leasing package is looking more and more like logistics. United Parcel Service, for example, offers full-service leasing and truck rental through its UPS Truck Leasing business unit, a part of the UPS Logistics Group.

Jim Shiplet, president of Paccar Leasing Corp., said trucking deregulation in 1980 brought on many changes. In lifting so many restrictions, it opened the door for leasing companies to provide cost-effective transportation management, along with roadside service, insurance and safety programs.

For the full story, see the March 8 print edition of Transport Topics. Subscribe today.