Truck & Trailer Rental and Leasing Industry Update Q2 2023

Industry Commentary

• The U.S. Truck and Trailer Rental and Leasing industry generates over $30 billion of annual revenue, with approximately 1 million commercial vehicles being leased or rented from third parties.
  • While market share is concentrated among sizeable national players, the remaining competitive landscape is fragmented among many regional, mid-sized, and smaller companies.
• Despite an uncertain economic environment, shipping volumes and demand for leased and rental vehicles remains steady as consumer demand and production activity persists.
• Rising interest rates require operators to closely evaluate vehicle financing strategies and may further the appeal of leasing and/or renting vehicles – instead of owning – for end users.
  • To date, the recently introduced accounting standard, ASC 842, which requires capitalization of certain operating leases has not significantly impacted the demand from end users.
• Technological innovations, driverless and electric vehicles, MPG minimum standards and other industry dynamics may require significant capital allocation and represent key operating considerations for industry participants as they look toward the future.
• Heightened M&A activity in both Truck and Trailer Leasing.
  • High level of private equity interest in Trailer Leasing, with notable “roll up” strategies from select aggressive acquirors.
  • In Truck Leasing, national pure play strategics, sizeable regional players, dealerships, and other T&L operators demonstrating an appetite for acquisitions.

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.