COOP Indiana, Michigan, and Ohio Market Guide
What connects some of the Midwest’s hallmark states Indiana, Michigan, and Ohio is more than just borders. An impressive network of highways composes a prosperous and diverse economy. These three states connect the Great Lakes to the rest of the country and are a gateway from the East to the West.
The Midwest's connectivity and potential drove COOP by Ryder, the commercial vehicle sharing app, to launch in Michigan, Indiana, and Ohio earlier this year. With COOP, businesses in these states can make their fleets more flexible to handle their transportation needs. When trucks, tractors, or trailers are available, companies can rent out their vehicles to generate revenue. In fact, one Owner out of this area has earned $47,655 in just 5 months!
Additionally, when businesses need extra capacity, they can use COOP to get vehicles with the right specs and get on the road in a few easy steps. Whatever your business needs, use this market guide to stay ahead of the rental surges so you can take advantage of the platform.
Indiana Rental Trends
Indiana, the heart of the Midwest freight corridor, is seeing strong population growth in recent years. With this growth, businesses large and small can find success in this competitive space through COOP.
The Indianapolis metropolitan area sees the bulk of commercial vehicle rental days in the state. This includes days for truck and tractor rentals, especially out of Greenwood where many businesses warehouse their goods just outside the city center. Fort Wayne and South Bend on the other hand see a higher proportion of rental days from dry van trailers. This is driven by the large Industrial sector that needs trailers for major pickups in the Industrial and Retail sector. This includes coal, iron ore, steel products, and agricultural products that are transported through the international ports and then hauled over the road to the rest of the country. Trailers also see high rental days for the Retail industry. Due to the increase in consumer demand for electronics, appliance outlets, clothing stores, and restaurants, the Retail industry is renting straight trucks at an increasing rate.
South of Indianapolis right by Evansville and Jeffersonville dry trucks are the rental vehicle of choice; however, the Food Industry makes up nearly 30% of all rental days in these southern Indiana cities, for which reefer rentals are needed. Refrigerated vehicles get a high amount of rental days in the summer for the Food industry to keep produce fresh. International, Great Dane, and Utility brand refrigerated vehicles are sought out by renters to this end.
While important to consider locale, it is equally important to know the industries that drive rental demand across the state. Another rental trend to look out for in Indiana is the increasing need for final mile rental vehicles especially for the Retail industry. Retail is seeing major growth this year with large ecommerce orders and the return of Hospitality and Restaurant supply chain needs. To get goods to the consumer, e-commerce and home delivery companies have turned to final mile vehicle rentals. Indiana businesses should look to list vehicles on COOP that are used for final mile deliveries to get them rented out. This will be crucial especially before the busy holiday season when final mile deliveries are at their peak.
As restaurants and events make a comeback, they will need vehicles to handle their cold chain distribution needs. These vehicles will be in even more demand June through August as reefer vehicles are doubly popular during the summer. Additionally, Healthcare companies seek tractor trailer vehicle rentals yearlong for equipment distribution as they aim to meet Indiana’s growing population. Construction and Industrial industries seek many of the same heavy duty vehicle rentals yearlong. They need these vehicles to finish up projects like the $11.1M in state grants awarded to Northwest Indiana for local road projects and the Heavy Haul Transportation Corridor in Clark County.
Michigan Rental Trends
Two main industries drive the majority of the commercial vehicle rental demand in Michigan - the Manufacturing industry and the Food industry. As Michigan is the 10th most populous state in the United States, its Industrial sector is a national hub of manufacturing and the state’s Food industry brings in 7.13 billion dollars annually.
Little berries can make a big impact when it comes to Michigan’s Food industry. Michigan is the #1 producer of cherries, and blueberries have one of the biggest impacts on rental seasonality from late May to mid-September. Food distribution during the summer is a huge driver of rental days for refrigerated vehicles. These reefer unit rentals go over the road to deliver berries to the whole U.S. As an Owner, you can impact your bottom line by renting out 53’ refrigerated trailers and tractors to companies that need rentals to move these crops. These rentals can be long-term since they need to move crops over many weeks while they are ripe. When you secure these longer rentals it translates to more money for your business.
High Industrial demand has been enabled by investments over the years. Initiatives like giving small business incentives to offset the global economic downturn, infrastructure developments off the ports in Lake Michigan, and the renewed consumer interest in auto manufacturing mean that Michigan companies should prepare for increased demand from the Industrial sector. With the microchip shortage, vehicle manufacturers are playing catch-up on a year’s worth of demand. As a result, a wide variety of businesses in the area need vehicles to complete these projects. While companies await their vehicle orders, they are turning to vehicle rentals. Day cab tractors, sleeper tractors, and 53’ trailers see high rental demand in Michigan towards these ends. And in Q4, the rental market for trucks and dry van trailers will only increase. The market will still be tight, and companies will need to carry hauls through the historically busy Q4 holiday season.
Ohio Rental Trends
The Cincinnati, Cleveland, and Columbus metropolitan areas are where we look to get insight on rental trends in Ohio. Large capacity tractor trailers dominate the market in Ohio for rental days. The largest industries are Construction, Mining Coring & Oil and Gas Extraction, Transportation, and Warehousing. Steel production alone accounts for 14-17% of the state's export, something which requires large flatbed trailer rentals to haul.
Economically speaking, Ohio has made the best out of 2020 as businesses are investing heavily in this state. These investments include large company commitments to Ohio’s consumer products such as healthcare, food & beverage, and industrial packaging. The commercial vehicle manufacturing industry is seeing ~%5 month-over-month increases in the inventory of both light and heavy duty trucks in Ohio to facilitate these increases in demand. As manufacturers work through a supply backlog, Owners should take the opportunity to rent their fleets out to Renters that greatly need to increase their capacities.
Locale and timing matters greatly when choosing places to make your vehicle available in Ohio. Cleveland sees the most refrigerated trailer rental days during the summer. Meanwhile, straight trucks are particularly popular to rent in the Cincinnati metro area. Light duty commercial vehicle rental days run high across the state during the summer, slow a bit in September and October, and then pick up again through the end of Q4. The holiday season sees high demand in Ohio across the board, as consumer demand for Personal Services and the Retail industry reaches its peak.
How these Markets can leverage COOP
If your business will have vehicles available, get ahead of the tight Q4 season and list your trucks, tractors or trailers on the truck sharing platform. Many customers in your area will be looking to reserve vehicles through the end of the year. With the potential for long-term rentals, it’s important to list vehicles by the end of the summer when vehicles will start to be picked up. And when your vehicles could earn up to $5,000 per month when listed on COOP, that could mean a lot of money for your business.
Likewise, as a Renter in Michigan, Indiana, and Ohio, your business can use COOP as your solution to finding the vehicles you need. COOP has hundreds of available trucks, tractors, and trailers and you can choose the vehicle with the specs you need at the rate you want.
To put your business in a position for success, here is an overview of the top commercial vehicle rental trends in Ohio, Michigan, and Indiana:
- Refrigerated trailers see the most rental days during the summertime. Refrigerated 53' trailer rentals are particularly popular in the summer for food distribution in all of these markets. Reefer straight truck rentals and day cabs are also in high-demand from businesses in the sector.
- Retail industry Renters will seek light duty truck rentals. Largely driven by E-commerce, consumers are purchasing goods online and in-store. Final-mile vehicles will be rented more frequently to keep up with these deliveries.
- Manufacturing and Industrial sectors require tractor rentals. The supply chain, particularly out of Michigan and Ohio, is handling the backlog of manufactured parts now that microchips are gradually coming back into the market. As businesses await their vehicle orders, many will need to rent vehicles to keep up with their business. This means Day Cabs and Sleepers will all see higher than normal rental demand.
- Trailers are in high-demand in these states and nationwide. Dry van trailers are rented out long-term and quickly on the COOP platform. Take it from one COOP customer, Champion Trailer Solutions. Learn how they had their trailers out on the road within 24 hours of listing them on COOP.
With these trends in mind, COOP is the solution whether you are looking to rent trucks or have them available in each of these markets. Achieve fleet flexibility by leveraging the platform to adapt your business to a unique environment.