Despite the economic and market conditions and the strict emission standard compliance imposed on manufacturers, there are some noteworthy trends that are driving the growth of the trucking industry.
Boston, MA (PRWEB) September 19, 2014
Recent financial data reveled that private companies in the freight trucking industry increased their sales by 7% in the last quarter of 2014. New data like this from the trucking industry can be used as a bellwether to determine how the U.S economy is doing as a whole. This data has been proven to show trends with shipments domestically as opposed to other forms of freight transportation. Other non-trucking data is largely influenced by international and not domestic shipment data.
In 2013, private trucking companies saw a significant increase in their sales although it is not yet established whether pricing or volume or a combination of the two is what contributed to the increase. Even though the number of shipments and rates haven’t improved materially in 2014, other industry groups have noted that truckers have generally been hauling heavier goods. This leads to greater wear and tear and demand for replacement of parts as well as vehicle upgrade – which is done via leasing, purchase or rental.
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Private trucking companies have historically had thin profit margins as compared to other transportation industries. However, preliminary estimates show that profitability significantly improved in this sector in 2013. Net profit margins in the previous three years have always ranged between 3-4% but they increased to nearly 6% in 2013.
Fast forward to 2014 and it appears that emerging markets, low penetration rates and a booming economy are the key sources of growth for the trucking industry. As a result, more businesses are now acquiring trucks to help them expand their capacity amid the demand for industrial and construction products.
This increase in truck acquisition bodes well for the truck leasing industry as this demand in usage typically carries forwards to an increased demand for equipment. Truck leasing is utilized by companies of all sizes especially those which have tight finances.
Vernon Tirey, CEO and founder of LeaseQ says, “Despite the economic and market conditions and the strict emission standard compliance imposed on manufacturers, there are some noteworthy trends that are driving the growth of the trucking industry. These factors include accelerating income, increasing urban population increasing construction expenditure and escalating freight volume. This bodes well for any industry directly or indirectly related to the trucking industry, including leasing and financing.”
When demand for trucking increases, all three modalities of truck acquisition prosper – including outright purchase, rental and the ever increasing popular leasing.
LeaseQ Makes Truck Leasing Easier And Faster
Acquiring new trucks has historically meant a large cash outlay. Large cash outlays are not favored by small as well as large businesses given the current unpredictable but steadily improving U.S. economy. Many businesses look to free up those cash reserves by seeking alternate means in which to acquire large capital investments such as trucks. That cash can then be used elsewhere whether it’s for marketing, hiring new employees or expanding manufacturing capacity.
LeaseQ has addressed this issue by creating an online platform where businesses can connect with major financing companies, which will help them acquire new equipment without putting them in a precarious financial situation. This helps conserve cash so businesses can acquire the equipment they need without extinguishing cash reserves.
Interested lessees can get free and instant pre-qualified truck leasing quotes from hundreds of financing companies in less than two minutes. They do not have to fill out tons of paperwork or endure pesky sales people. This makes the process of leasing a lot simpler and faster.
LeaseQ is an online market place where businesses can shop for leasing plans that are best suited to their current financial situation. Their One Touch platform runs credit scores with zero impact on the business owner’s personal credit. LeaseQ is based in Woburn, MA. Try their online platform by visiting https://www.LeaseQ.com.