The Road Ahead: Truck Rental in Canada Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) February 16, 2013
The Truck Rental industry operated in a volatile environment over the past five years. The recession and its aftermath decreased activity in the truck transportation sector and markedly decreased housing construction activity, says IBISWorld industry analyst Kevin Boyland, "and as a result, demand from the commercial and consumer markets waned in 2008 and 2009." Amid the tough economic climate, many surviving trucking firms, which represent a key customer market, opted for truck leases over purchasing vehicles outright to improve flexibility and lower operational costs.
Given the economic uncertainty, industry operators had to streamline operations and improve efficiencies to maintain profitability. According to Boyland, "One strategy the industry's largest operators undertook was to maintain and expand economies of scale through mergers and acquisitions." Indeed, major player Ryder completed five industry-related acquisitions from 2009 to 2011. As consolidation within the Truck Rental industry increased, the number of industry firms declined an estimated 2.0% per year on average to 251 in 2013.
Following significant recessionary declines, a government stimulus package helped increase the number of housing starts. As more consumers moved, demand for truck rentals from this market increased. Although demand for truck rentals and leases waxed and waned, the industry received an overall net increase in demand over the five years to 2013, albeit a small one. As a result, revenue grew at a meager annualized rate of 0.4% over the period to $ 2.5 billion in 2013.
Increasing emissions and fuel-efficiency regulations are anticipated to drive demand from the commercial market going forward. Indeed, regulation aimed at lowering emissions from long-haul tractor-trailers and large pickup trucks by 23.0% by 2018 will require downstream customers to either purchase or lease new vehicles. IBISWorld expects that the majority of downstream trucking firms and fleet operators will lease their vehicles from industry operators as they seek more predictability and flexibility in their cost structures. Revenue is anticipated to grow 1.2% through 2013 as trucking companies replace their fleets with more fuel-efficient leased trucks. As this trend persists and housing construction activity recovers, revenue is forecast to grow over the five years to 2018. For more information, visit IBISWorld's Truck Rental in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry primarily rents or leases trucks, truck tractors, utility trailers, semitrailers, recreational vehicles (RVs) and buses without drivers. Vehicle retailing activity is excluded from this industry. Also, firms that rent or lease industrial trucks and equipment, such as forklifts, are covered in the Industrial Equipment Rental and Leasing industry (IBISWorld report 53249CA).
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About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.ca or call 1-800-330-3772.
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