Restrictions on truck emissions will affect the industry's future
London, United Kingdom (PRWEB) August 02, 2012
The Truck Renting & Leasing industry has been moderately affected by the downturn in the UK economy, with lower freight volumes and distances travelled compared with pre-2008. These factors have contributed to lower truck leasing and rental demand in some areas, but they have not affected industry revenue overall. According to IBISWorld industry analyst Alen Allday, “This is due to companies that require trucks choosing to rent or lease them, rather than buy them, during the difficult economic period”. Despite freight volumes falling in 2009-10 and the economy continuing to weaken, truck rental revenue increased strongly due to the maintenance of prices, and greater use of leased vehicles rather than trucks owned by distribution firms. Although freight volumes increased in 2010-11, industry revenue fell due to declining pricing levels as leasing firms looked to maintain market share. Freight volumes are estimated to increase in 2011-12 and 2012-13, contributing to revenue growth.
During 2012-13, industry revenue is forecast to increase by 3.5% to £1.89 billion, with estimated annualised growth of 1.3% over the past five years. The 2012 London Olympic Games are expected to result in a brief period of stronger economic growth in the United Kingdom, and positive industry revenue and profit growth for the year. Allday adds, “higher funding rates in the next five years due to higher interest rates and weak UK and EU economies will provide further challenges to the industry”. Lower usage and prices due to increased competition will put pressure on truck rental and leasing firms to maintain customer numbers. For the five years through 2017-18, industry revenue is forecast to increase marginally.
The Truck Renting & Leasing industry has a low level of market share concentration due to the large number of small and mid-size firms operating in the industry. IBISWorld estimates that the top four firms account for 26.5% of industry revenue in 2012-13, with the top eight firms making up about 33.6% of industry revenue. Major companies include Northgate, Ryder System and Dawsongroup.
For more information on the Truck Renting & Leasing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in this industry rent and lease trucks (3.5 tonnes and above) and commercial vehicles, including light trucks, tractor units and their trailers, temperature-controlled vehicles and other specialised commercial vehicles and trucks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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