Rising costs and increasing energy prices will join vehicle supply as the main challenges facing the rental, leasing and fleet sector in 2023, according to the BVRLA’s Industry Outlook Report.
Despite the difficult business environment, BVRLA members are hopeful of sales transactions increasing as the emergence of new business models keep the sector agile. The Report contains data and views from BVRLA members to explore how operating conditions may change next year. After the continued disruption through 2022, 84% of respondents still envisage vehicle supply presenting the biggest challenge next year, 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 anticipates that flexible mobility solutions will come to the fore. 57% of respondents predict that van flexi-rental will see demand grow in 2023, while salary sacrifice and van business contract hire are the other business models that are widely expected to grow in the months ahead. BVRLA Chief Executive, Gerry Keaney said: “The last twelve months have been punctuated by political chaos, huge regulatory realignment, a once-in-a-generation surge in inflation and immense supply chain challenges. Many of these challenges will continue into 2023. “Our Industry Outlook Report portrays a sector as pragmatic, positive and professional as ever. The findings show that BVRLA members are adjusting to new market realities, focussing on their growth opportunities and addressing their compliance priorities while making major leaps forward in the use of technology.” “We go into 2023 with a great deal of optimism, ready to address these issues head on. If the last few years have shown us anything, it is how resilient and adaptable our sector can be.”
The Report was launched as part of the BVRLA’s Industry Outlook Conference, which returned today after a three-year hiatus. Hosting over 130 professionals from all corners of the sector, the Conference gave delegates an overview of the economic, policy and regulatory landscapes and what impact that will have on business in the coming year.
Image shows the report launch at the BVRLA Industry Outlook Conference