Businesses across Georgia are finding new solutions to maximize their fleet. Fleet flexibility, such as generating revenues typically gained in indoor dining through delivery, are proving useful towards transportation logistics. From the world’s busiest airport in Atlanta to one of the fastest growing seaports nationwide in Savannah it is clear that this market has thrived historically. No matter the challenge, Georgia businesses take advantage of the transportation hub and different technologies to lead the way in innovation.
When COOP by Ryder launched in Atlanta, GA in 2018 we used data to prove that the market was a stable foothold to launch our commercial-truck-sharing platform. A couple years later, a growing number of local commercial fleets are using the COOP platform to reduce downtime as well as rent vehicles for extra capacity when needed. Georgia native companies like Britt’s Home Furnishings generate revenue with COOP when their trucks are idle by renting them to other businesses in their network. This simple business-to-business solution to help improve fleet utilization has its roots right in your backyard.
Georgia’s transportation needs have changed over the years so we’re taking a fresh look at when is the best time to rent and list vehicles with COOP. Our market guide shows key industry trends including historic data and the impact of COVID-19. Use this guide to make educated business decisions, know when to rent out vehicles that are in your fleet to maximize the revenue you will generate.
With one of the top 10 fastest growing populations in the country, businesses here have a healthy flow of new consumers and potential revenue sources. Several indicators point to a bounceback from 2020’s COVID-19 pandemic that slowed down many companies. Consider how your business could meet the rental demand we expect as companies in your network move toward becoming fully operational.
Understanding which industries have the most rental days and when the most of them are in the market is a good first step to making the most out of your vehicles. Diversifying which types of businesses you rent to industries outside of your own business’s industry can help increase your fleet utilization and maximize impact on the bottom line.
Historically, Food & Beverage is the top industry in Georgia and accounts for 22% of rental days in the market. This demand for rentals from this industry can be expected to return as businesses start to open up and indoor dining resuming to pre-pandemic levels. Refrigerated trucks and refrigerated trailers shouldn’t sit idle this year as many businesses are looking to be flexible with how they reestablish their cold chain logistics. Some local enterprises like Coca Cola, which maintained logistics efficiency alongside employee safety, and Chick-Fil-A, which focused on delivery and drive-thru excellence, have paved the way for businesses around the nation.
Development of infrastructure has maintained high priority through Construction and Industrial industry rental demand. The development of one of North America’s largest on-terminal rail facilities is one of many exciting projects in the works. The manufacturing sector is supported by an impressive set of interstates that make 80% of the U.S. market within 2 days land travel of the city centres. These industries present a consistent opportunity to rent out idle flatbed trucks and flatbed trailers.
Last year brought new challenges and so it also brought a lot of changes to the Georgia market. Specifically, the loss of events, indoor dining, and large gatherings changed the way that businesses had to reach consumers.
With businesses returning to normal, leading indicators suggest that historic trends will see a comeback with some key changes. In 2020, deliveries became increasingly common all year round which indicates an opportunity for final-mile delivery vehicles to profit more than previous years. Factors like the vaccine rollout, economic impact payments, and travel limitations are playing a role in 2021 as never before.
As we looked back at our growth in the Georgia market, two things remained the same: most businesses have their highest rental demand in Q4 and over-the-road fleet brands account for the most rental days. However, one trend that should get more attention is the anticipated bounceback that is a major earning opportunity. Use these insights to guide your business to maximize its earnings in 2021.
When it comes to maximizing utilization look to the box truck and sprinter vans. We’re projecting that the final-mile demand will continue through 2021. Models that do well to manuever city streets, such as cab over engine box trucks and cargo sprinters, can earn regularly with COOP rentals throughout this coming year. The growth will likely see rise in rentals in 2021 due to the growing final-mile demand.
Trusted brands like Utility and Volvo provide tandem tractors and 53 ft. trailers that start to see long-term demand right after Q1. We predict this trend to be even more pronounced as consumer confidence rises. Look for that springtime bump in demand and a stronger-than-normal April, May, and June as businesses reopen and seek new supply chain partners to bring them through the new year.
Over-the-road sleeper tractor brands Freightliner and International tend to fill the most rental demand days on their long distance journeys. As Georgia is connected by renowned roads, rails, ports, and planes it’s clear that these cross-country models generate a lot of revenue as they need to be rented for longer periods to complete the trips they’re built for. These models can be especially hard to come by in Q4, so consider listing them as early as September or August to secure long-term rentals.
Refrigerated trailers and refrigerated trucks will be especially popular during the hot Georgia summers. Capture the incoming demand by listing vehicles available. On COOP, Owners earn for the reefer hours in addition to the rental days. If your business has something like a few Isuzu refrigerated box trucks sitting idle this summer, reduce their downtime with the platform.
As the Georgia economy overcomes the challenges of last year, make your business part of the recovery. Keep the wheels moving and look to leverage our platform as a tool towards positively impacting the bottom line.
With steady demand on the horizon, the Atlanta metropolitan city center will be the heart of an economic comeback for Georgia. Stay competitive by making vehicles available on the platform to rent out your fleet to new industries.
This transit-centric economy saw COOP Owners continue to see a period of high demand in Q4. They earned on average $10,098 in Q4 of 2020, a 44% increase from our last look at the market in 2019. As you navigate the year, here are some other things to keep in mind:
How does your business fit in the picture? With fleet flexibility and a willingness to adapt, your business can leverage COOP as a tool to capture the maximum revenue all year long.
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