Industry outlook: difficult forecast but sales to increase

THE BVRLA held its Industry Outlook conference today (07 December 2022).

Reporting on the findings of the BVRLA’s latest research from members, Toby Poston, BVRLA’s corporate affairs director, chaired a panel consisting of (l to r above) Natalia Peralta Silverstone (head of propositions, Octopus Electric Vehicles); Claire Evans (fleet consultancy director, Zenith); Nigel Davies(AVP fleet UK & Ireland, Enterprise); Pat Skelly (CEO, Prohire Group), Margaret Speirs, (rental director, Arnold Clark), Rod Lloyd (chief executive of leasing broker the lcv group) and Per Voegerl (CEO, United Rental Group).

The report said that rising costs and increasing energy prices would join vehicle supply as the main challenges facing the rental, leasing and fleet sector in 2023.

Despite the difficult business environment, BVRLA members were hopeful of sales transactions increasing as the emergence of new business models kept the sector agile.

The report explored how operating conditions might change in 2023. After the continued disruption through 2022, 84% of respondents still envisaged vehicle supply presenting the biggest challenge, with pre-Covid levels not expected to be reached until 2024 or beyond.

As the cost of living crisis takes greater hold over household and business expenditure, the sector anticipated that flexible mobility solutions would come to the fore: 57% of respondents predicted that van flexi-rental would see demand grow in 2023, while salary sacrifice and van business contract hire were the other business models widely expected to grow in the months ahead.