Truck Leasing Fills New Roles

NAPLES, Fla. — Business trends are increasing the importance of leasing companies and providing them with new roles in the economy, according to executives attending the Truck Renting and Leasing Association meeting.

Executives from some of the top national leasing companies took notes and voiced optimism for the future when they gathered to discuss their industry. Despite concerns about environmental restrictions and the shortage of skilled technicians, the overall thinking was that companies needed to position themselves to better respond to changing and expanding customer needs in the $15.4 billion market.

“The private carrier market is huge, and leasing still represents a small part of the market — less than 20%,” said Steve Donly, vice president of Ryder Leasing. “We don’t see the market slowing down for leasing at all.”

He noted that 1998 was “the third-best sales year in the company’s history, and we’re looking to top that in 1999.”

But Donly said leasing customers are getting more demanding, which has forced Ryder to increase and tailor its services to fit customer needs.

Paul DeGrace, vice president for UPS Truck Leasing, said his company expects “a continuation of the trend toward more transportation outsourcing.”

For the full story, see the March 15 print edition of Transport Topics. Subscribe today.