TLS Vehicle Rental: increase in spot van rentals
First quarter demand suggests economy moving upwards
THE DAILY rental company TLS Vehicle Rental says a solid increase in spot rental of vans and trucks through the first quarter suggests that the economy is very slowly moving forward.
The GE-owned commercial vehicle rental specialist says that the rise in rental days on short term hire of a month or less was in low single figures but noticeable – the first increase it has seen since the start of the recession.
Simon Cook, sales director, explained: ”For commercial vehicle rental companies, the recession has been all about long term rental, with customers using hire as a flexible alternative to buying a van or truck. Short term, spot rentals fell away.
”However, for the first time in around two years, we have seen an increase in spot rentals. A trend of this type is usually a sign that our customers are responding to day-to-day demands for transport, so is an encouraging economic sign, although slight.”
Cook said that the increase in spot rental could be seen as a parallel development to the high level of demand for used vans and trucks, alongside the first signs of recovery in the new commercial vehicle market.
He said: ”The state of the CV sector as a whole is always a good indicator of the state of the general economy – if people need vans and trucks, it is because there is demand for the goods and services they provide.
”While we remain extremely cautious about prospects for the general economy through 2010, we do at least appear to be slowly moving in the right direction.”
