Clearer Road: Truck Rental in Canada Industry Market Research Report Now Available from IBISWorld

Clearer Road: Truck Rental in Canada Industry Market Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) February 05, 2013

The Truck Rental industry operated in a volatile environment over the past five years, according to IBISWorld industry analyst Kevin Boyland. The recession and its aftermath decreased activity in the truck transportation sector and markedly decreased housing construction activity; as a result, demand from the commercial and consumer markets waned in 2008 and 2009. Amid the tough economic climate, many surviving trucking firms opted for truck leases over purchasing vehicles outright to improve flexibility and lower operational costs.

Economic uncertainty has forced industry operators to streamline operations and improve efficiencies to maintain profitability, says 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 Systems Inc. completed five industry-related acquisitions from 2009 to 2011. As consolidation within the Truck Rental industry increases, the number of industry firms is expected to decline 2.0% per year on average to 251 in 2013. The industry currently has a low level of market share concentration. Other major companies include Amerco (operating through U-Haul International), Penske Truck Leasing and Enterprise Holdings.

Following significant recessionary declines, a government stimulus package served to 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 is estimated to grow 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 2018 will require downstream customers to either purchase or lease new vehicles. IBISWorld expects that the majority of firms will lease their trucks from industry operators as downstream fleet operators seek more predictability and flexibility in their cost structures. As trucking companies replace their fleets with more fuel-efficient leased trucks 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.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

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).

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

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 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.com or call 1-800-330-3772.

©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.