New York is one of the busiest places in the world. The transportation industry is a big part of that -- three major freight corridors connect the start to a large transportation network that extends beyond state borders. Commercial vehicles are needed for routes from Buffalo into Pittsburg, from Syracuse into Pennsylvania, and of course from Albany into NYC.
Some of the finest goods, infrastructures, and foods in the world travel through these freight corridors. Consumers and businesses alike recognize the great possibilities for the transportation industry in New York. Take advantage of this business potential by understanding the rental trends in the state. Leverage technology to optimize vehicle utilization and satisfy capacity needs.
COOP is proud to provide metric-based insights on New York’s transportation rental trends. Your business can use these metrics to gauge how its fleet utilization compares to the market’s rental demand at large. As a vehicle-sharing platform that serves both companies that need additional capacity and businesses that want to reduce downtime for idle units, we put together this guide so that your company can always keep moving.
Whatever your business needs, use this market guide to stay ahead of the rental surges and transportation trends in your market.
New York is, as it always has been, one of the first regions to face the challenges of the modern world. In the five boroughs and beyond, companies have faced manufacturing shortages, population migrations, and a changed face of the tourism industry.
One of the most important unique circumstances that will affect the commercial fleets into 2022 is the manufacturing shortages. Delayed production of several vehicle types has brought many companies into the rental market for the first time. Since purchasing a vehicle is more difficult, many companies are looking to the rental market to satisfy their capacity needs. Many manufacturers and shippers in New Jersey look to secure their freight lines into New York however possible. These businesses need final mile and over-the-road vehicles for freight capacity that allows them to mobilize to the point of sale.
To a lesser extent, population migrations that have bolstered the Moving Season critical to New York’s summer demand are worth keeping an eye on. Very common vehicle specs like etracks and liftgates will likely be at premium levels of demand around this time. With people getting back on planes, New York is a popular destination. Food venues have created outdoor dining spaces that promise a return to restaurateur demand, and with it a need for cold chain logistic vehicles once winter is over.
Rental transactions last an average of 21 days. This presents an opportunity to lock in long-term reservations to earn a stable profit margin out of idle vehicles that may have sat for the month otherwise. Our commercial vehicle-sharing platform brings this innovative solution to your business, it’s free to join keeps idle vehicles from negatively impacting the bottom line.
As businesses continue their growth trend, freight lines out of North Jersey and Albany into the city see greater rental demand to haul things from goods to food.
The Food industry, largely distributed out of upstate New York and consumed by New York City, is also a large driver of rental demand. The state is the 4th largest producer of dairy products. In the second quarter, we see a higher-than-average need for refrigerated vehicles out of Syracuse and Buffalo. Refrigerated trailer vehicles go out for 25 days at a time on average, which could mean a steady revenue stream through Food industry demand primarily in Q2 and Q4.
During the summer festival season in late June to early July, businesses can profit from providing vehicles that are maneuverable in the city to other companies trying to get additional capacity. This demand includes light-duty models like 26’ straight trucks, sprinter vans, and 16’ box trucks.
Holidays are the main driver of demand from the Tourism industry, as well as the adjacent Business & Personal Services Industry. A new Amazon distribution center in Long Island is a hallmark of rising demand for these industries. Christmas and New Years holidays create spikes in 26’ box truck rental demand in New York City to accommodate the increased tourist traffic. With many tourists flocking to the city, these industries need support from Owners with idle vehicles available to rent.
According to the largest moving company in the U.S. New York State was #3 for population migration in 2020 -- which leads us to anticipate a strong straight truck demand coming up in 2022 for moving companies. With New York state’s 7.4% population growth in 2020 driven by counties like Erie, Onondaga, and Albany, it’s more than just New York City when looking at what could change with rental demand.
More people means more goods and more business opportunities. A great place to start is with the largest percentage of vehicle rental days in the state, which is dry trucks. In New York and across the country, there has been a huge trend to rent more final-mile vehicles as people increasingly rely on ecommerce for their goods. It is especially important in New York City where these vehicles are easier to maneuver in tight streets. In the city, unlike other markets or even upstate New York, sleeper tractors are not as in-demand. Many businesses have a preference for day cabs, which implies a need to satisfy daily local trips rather than go over the road.
The top industry that drives demand is the Food and Beverage industry in New York. This industry has a preference for Freightliner and International refrigerated vehicles that are known to be reliable. However, Utility vehicles get the longest rentals of any other brand by far at 21 days -- primarily through the customizable refrigerated trailers, reefer vans, and flatbed trailers they manufacture. Business and Personal Services is a close second for industry demand, and fortunately for Owners they require much of the same final-mile 16’ box trucks, 26’ box trucks, and sprinter vans that rental demand drivers need throughout the market.
Know the different influences that drive rental demand to keep your commercial vehicle’s wheels moving. With manufacturing done largely outside of the city, it comes down to the final-mile of delivering goods and services to drive the bulk of commercial rental vehicle demand yearlong.
The first quarter sees high rental demand for certain vehicle types. While it is true that dry trucks make up the bulk of New York’s rental demand, we see some of the longest tractor rentals go out in February. This is largely driven by sleeper tractors rented for over-the-road hauling. Tractors that go out in February stay on rentals for nearly 20 days at a time on average. These long-term rentals are a worthwhile cost-benefit analysis to make if your business only needs them a couple days in the season, they may be worth renting out instead.
Spring also presents business opportunities for those with fleets. Flatbed trailers see their top demand in the second and third quarter as the Construction and Building Materials industry take up a greater proportion of demand. As businesses prepare for the 2022 year, they should prepare for climbing demand that peaks in Spring. Driven partly by trailers that can go over-the-road, this season has the most rental demand outside of the Q4 holiday season. From 2017 through 2020, the trend of rising rental demand into Spring and Fall has shown consistently, which could mean great opportunity for Owners throughout 2022.
One final push remains for the 2021 Q4 holiday season demand that peaks in December. Nothing quite compares to the Tourism, Food, Beverage, and Ecommerce industries business need for commercial vehicles at the end of the year. With each large event planned, Owners should look to take advantage for profits instead of sitting on idle fleets. December alone makes up 10% of rental demand for both tractors and trucks in New York state.
Starting in Mid-November the freight capacity needed for mass returns of online and in-person shopping goods creates the ‘Boxing Season.’ To get these goods back to distribution, Boxing Season causes a substantial need for dry 16’ to 26’ straight trucks as well as commercial trailer rentals. Lately, this phenomenon has gone on longer than previous years. Even into January of 2022, we anticipate greater-than-normal demand for units that can satisfy Boxing Season’s rental demand.
Though 2020 came with challenges that left an impact on rental demand trends, 2021 has proven to be a return to the norm with certain notable exceptions. The need for final-mile vehicles seems to go beyond seasonality, and be a yearlong expectation. Future-proof your business by planning ahead, and giving it the tools to succeed in this unique business landscape.
New York businesses are used to plenty of opportunities. Technology is reshaping how vehicles are utilized and your business can profit. In fact there is a new technology, COOP by Ryder, that allows businesses to generate revenue when they experience vehicle downtime.
How can you create a new revenue stream for your business? COOP is the vehicle-sharing platform that offers businesses a groundbreaking way to better utilize their fleet. Companies with idle vehicles can generate revenue by renting out their trucks, tractors, and trailers. 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.
As the economy overcomes the challenges of last year, make sure your business is prepared. Keep the wheels moving and look to leverage COOP as a tool to help positively impact your bottom line.
Know what to look for so that your fleet and you will get ahead. Take the initiative, join COOP to help your business reach its goals.
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