Rental push aims to meet conflicting economic news 31-01-06

Rental push aims to meet conflicting economic news

Commercial vehicles rental could benefit from a wave of conflicting news about the UK economy, according to TLS Vehicle Rental.

Current economic signals are very mixed, with a rising number of businss insolvencies in 2006 forecast this month by Experian while, conversely, the first Chartered Institute of Purchasing and Supply index for the New Year showed that the 700 companies surveyed are seeing their highest level of business activity since April 2004.

Sean Welham, marketing director at TLS, explained: "This push and pull effect was seen in the economy during most of 2005 and looks set to be even more marked in 2006. There is an uneven picture across different industries. For example, the service sector is doing unnexpectedly well while manufacturing is suffering in comparison.

"What this means is that a large number of companies are seeing steady expansion but are still not necessarily feeling confident about the future. However, these growing businesses need vehicles and rental allows them to meet that need without entering into a long-term commitment such as outright purchase or contract hire. Now is an ideal time for us to be encouraging fleets to look at the basic thinking behind their choice of acquisition method."

As part of this campaign, TLS has produced two guides - Things to Consider before you contract hire and Things to consider before you purchase - both available at www.tls.co.uk

Also, at www.trytls.co.uk, fleets can take This TLS Challenge, which sees an animated character called Ivan ask basic questions about the way in which their fleet is currently funded as well as make wider queries about future prospects and handling risk.

Welham added: "Our mission is to increase the number of businesses which look at the advantages and disadvantages of vehicle rental in the same way as any other acquisition method, rather than just viewing hire as a stop gap service they use to replace one of their own vehicles when it is off the road.

"The current economic picture provides ideal conditions for rental and it is highly pertinent for us to be promoting this message. Research shows that almost nine out of 10 companies have no plans to re-examine their fleet acquisition method but we're saying, 'this is the right time eto rethink.'

"There is an old saying in the rental industry - 'when you need a vehicle, it's yours; when you don't, it's ours - and that should be an attractive proposition to many fleets at the moment."