Regulations Generate More Business for Firms

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omplex federal regulation of diesel-engine emissions and driver hours-of-service is pushing more private fleets to increase their use of leased trucks, industry observers said, and leasing executives said they anticipate even better business when the 2007 round of emissions regulation gets under way.

Heavy shippers with precise transportation needs are not only looking to hedge wariness about tractors with new engines, leasing companies said of their customers, but they also are looking to leasing firms as partners to help them manage vehicle maintenance at a set cost and to provide regulatory expertise.

Uncertainty created by the new federal regulatory requirements points to a continuing shipper migration from owning trucks to leasing them and an increase in the outsourcing of equipment maintenance. The latest figures available from the Truck Renting and Leasing Association estimate that contract maintenance grew 11% from 2001 to 2002.

Idealease Inc., founded by International Truck & Engine Corp., but now a franchise operation, has seen a 15% increase in private fleets entering maintenance contracts over the past four to five years, said Lance Bertram, vice president of marketing.

For the full story, see the March 29 print edition of Transport Topics. Subscribe today.