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Updated: July 8th, 2008 05:26 PM EDT

Truck Leasing Conserves Resources

Leasing keeps assets off the books and reduces internal maintenance costs.

Rockman LLC truck
Rockman LLC is using the PacLease program to upgrade its truck fleet and reduce operating expenses.
Chris Miller
Chris Miller with Rockman LLC has taken advantage of the leasing option to free up capital and reduce internal maintenance requirements.
Rockman LLC fleet on site
Instead of relying on used trucks, Rockman LLC now has a newer vehicle fleet specifically specÂ’d for the application, and under warranty for the duration of the lease.
Economic Life of Asset chart
The economic useful life is defined as the intersection between the maintenance cost and the truck value.

Curt Bennink
By Curt Bennink
Senior Field Editor

Traditionally, Class 8 trucks used in construction have been spec'd for a particular application and then purchased. But leasing is emerging as an attractive alternative. It keeps the vehicles off your balance sheet, freeing up capital for other expenses or investment opportunities. It also can reduce the need for service technicians, and allow the use of newer, more efficient trucks that are covered by a preventive maintenance program and warranty.

Consider the case of Lake Stevens, WA-based Rockman LLC. The company integrates quarry, aggregate hauling, site clearing, earthmoving and utility installation operations, serving as a one-stop site development contractor.

"The customer could just make one phone call and the next time they have to talk to anybody is when it is time for the concrete," says Chris Miller, non-managing member of RLF Millery Quarry, LLC (DBA Cascade Quarries).

"Everything is done, and you did it with one phone call and one vendor." The customer also works with a single management team. "You don't have to go looking for five or six other people or companies to try to figure out what was going on with the project. It makes it easier for us, too. We have control of the project."

This unique business model has resulted in rapid growth. "We have seen a $20 million growth in the company in three years," says Miller. He credits much of this success to careful growth management.

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