Automotive Fleet

DEC 2013

Magazine for the car and truck fleet and leasing industry

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TRUCK MANAGEMENT ANALYSIS OF Sales of Class 1-2 trucks in the commercial feet market are forecast to have slow to marginal growth. ● Class 3-6 trucks have been the fastest growing truck segment in the commercial feet market, experiencing double-digit growth. ● The discontinuation of long-time models and the introduction of all-new products have caused van sales to the commercial feet market to moderate. ● The vocational segments representing the strongest growth potential in the truck/van feet market are the energy sector and telecommunications markets. ● Truck Class Segment Forecast Below are the market forecasts for each truck class segment, focusing on potential growth in vocational feet markets: ● Class 1-2 Trucks: "Sales of Class 1-2 trucks in the commercial feet market are forecast to have slow to marginal growth," said Gino Fontana, assisFONTANA Top 5 Fleets by Total Class 1-2 Trucks: 20,000 1. AT&T 2. PepsiCo, Inc. 3. ServiceMaster 4. Rollins, Inc. 5. AutoZone 15,000 10,000 100,000 22,975 17,418 10,750 7,300 7,202 5,000 0 1 2 3 4 5 Sales of Class 1-2 trucks in commercial feet market are forecast to have slow to marginal growth in CY-2014. A6 AUTOMOTIVE FLEET I DECEMBER 2013 SOURCE: AF RESEARCH DEPT. Total Vehicles Top 5 Largest Fleets by Total Class 1-2 Trucks 25,000 Top 5 Largest Fleets by Total Class 3-6 Trucks 80,000 Top 5 Fleets by Total Class 3-6 Trucks: 60,000 1. United Parcel Service (UPS) 86,000 2. AT&T 13,408 3. Verizon 8,275 4. Crop Production Services (CPS) 7,011 5. Cintas Corp. 6,017 40,000 20,000 0 1 2 3 4 5 Class 3-6 trucks are the fastest-growing segment in the commercial feet market, with sales to be in the double-digits in CY-2014. SOURCE: AF RESEARCH DEPT. AT A GLANCE Total Vehicles A tant VP of North American Maintenance Operations for Emkay. However, it is anticipated that future feet sales of Class 1-2 trucks will increase as the pace of new-home construction increases. "Class 1 and 2 volume is down slightly, but it is expected to gradually increase as the housing market continues to trend upward," said Charles Mathew, senior order specialist for Donlen. ● Class 3-6 Trucks: Tis is the fastest growing truck segment in the commercial feet market. "Tis segment has experienced double-digit growth. We expect it to taper of slightly in Q4 of 2013, but it will gradually ramp up again in 2014. We would not be surprised to see another year of doubledigit growth," said Mathew. Tis assessment is shared by other feet truck subject-matter experts. "Te Class 3-6 truck segment has been on the rise and it is expected to continue," said Fontana of Emkay. ● Vans: Te discontinuation of long-time models and the introduction of all-new products have caused van sales in the commercial feet market to moderate. with the potential for even stronger growth in the following three years (2015 through 2017), as it appears that most market segments are already recovering and further poised GHOSH to build on this initial momentum," said Partha Ghosh, director, supply chain management for ARI. "Strengthening economic indicators suggest that feets and their supply chains should expect positive momentum beyond 2014, especially driven by increasing versatility of new vehicles entering the North American market." n analysis of the "Top 100 Truck Fleets" provides an opportunity to forecast feet market-share trends by truck class segment, along with identifying vocational markets with the greatest growth potential. Te industry consensus is that there will be moderate to strong growth in the feet truck market in the next three years. "We expect moderate growth in 2014,

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