It has been a difficult time for the commercial vehicle industry recently, which has led to many manufacturers trying to come up with new ways to protect their businesses. For instance, at the Commercial Vehicle Show earlier this year organisers met with the Secretary of Transport to discuss the future of the commercial vehicles industry and to tackle the difficulties many manufacturers were facing.
Therefore, it’s good news to hear that Northgate Vehicle Hire has recently conducted research that has shown that within the next few years the demand for light commercial vehicles should increase by around eight per cent. Discussing the findings, head of marketing at Northgate, Jonathan Pearce, said: “When growth is predicted in an uncertain economic climate it is often difficult for businesses to fully prepare without parting with large chunks of capital. It’s important for business owners to look at smart solutions to managing outlay of capital.
“As a company’s fleet is often one of its more costly expenses, it is essential that businesses within the freight, logistics, post and railway transportation sectors seriously consider how their fleets are managed. Opting to lease vehicles as part of a flexible fleet management package is a solution that will see win-win results across the board. We have already experienced a rise in demand for flexible vehicle hire and complete fleet solutions within the industry and feel assured that this will continue as the sector continues to grow over the next three to five years.”
There have already been previous reports that more companies are debating hiring vehicles for their fleets instead of buying them, especially as due to the economic climate vehicles depreciate in value at an extremely quick rate. Furthermore, commercial vehicle hire companies can offer van insurance or commercial fleet insurance for all their vehicles, meaning that fleet managers can save time by not having to deal with as much paperwork.
The good thing about hire companies is that they can also offer to replace vehicles on a more frequent basis, meaning that they are safer to drive and cost less in fuel. With all these benefits it would not be surprising to see more fleet managers hiring commercial vehicles in the near future, especially if it can save them both time and money.