If you own a truck, odds are it's used for more than just routine driving. For businesses, most of these vehicles work harder than many cars on the road, especially for small construction companies in the midst of a project. Shop owners and truck manufacturers alike note that purchases should reflect current needs, as well as future aspirations, rather than an attempt to save a few short-term dollars.

Yet "the economy is in a down cycle and the new trucks are more expensive," Jim O'Neal, the majority owner and president of Springfield, Missouri-based O&S Trucking Inc., which has a fleet of 350 trucks, recently told Reuters. "Where is the incentive to buy in an environment like that?"

Added to this is the pressure on OEMs to produce engines that burn clean enough to meet the United States Environmental Protection Agency's emission standards, which came into effect January 1 and require all trucks on the road have new engines that use cleaner technology and ultra-low sulfur diesel fuel.

The new regulations prompted a massive buying of 2006 trucks by companies, as 2007 engines are more expensive. Trucking firms themselves did a lot of equipment "pre-buying" in the second half of 2006 to beat the regulations governing truck engines and fuel, Purchasing recently reported.

After a stellar 2006, this year was always going to be a tough year for the U.S. heavy-duty truck makers because of the tough new clean-air standards. How bad? While most truck and diesel engine makers insist 2007 is meeting admittedly low expectations, DaimlerChrysler AG's truck-making unit Freightliner LLC and others tell a very different story.

Leading truck engine makers have predicted sales would drop by as much as half this year. Diesel engine maker Cummins told Reuters in March that it expects North American heavy-duty truck engine sales could fall as much as 50 percent in 2007, thanks to the pre-buying ahead of the new emissions standards.

In the past, a firm buying or leasing a truck merely had to decide between diesel and gas-powered engines. Now there's another choice: hybrids, recovering the energy lost to friction and heat, as with consumer cars.

Moreover, a recent Ricardo/UBS research report, "Is Diesel set to boom in the US?" (via Truck Trend forums), points to combined annual hybrid gasoline and diesel vehicle sales in the U.S. of $2.7 million by 2012: "Combined diesel and hybrid gasoline will represent 15 percent of the U.S. light vehicle market by 2012, with sales of diesels outstripping gasoline hybrids by 1.5 million units versus 1.2 million."

Perhaps now more than ever before, fuel efficiency, cost and emissions will play a significant role in the truck choice a company makes, whether leasing or buying new or old.

Assuming you've found the best fit between your specific hauling needs and what's on the market, you still have some choices: buy new, buy used or lease.

Construction companies in the market for trucks may want to buy used if they anticipate using the trucks frequently and other equipment costs restrict the budget. If successful, though, it can pay to move up to new trucks, especially when you take into account the costs of maintenance and repairs. You may find that you can own new trucks for the same as it costs to run old trucks. To make the switch between old and new, you can sell the old trucks when they reach five years old. (See also Today's Trucking's "Nine Tips for Buying a Used Truck")

Another option truck users have is to lease. Leasing a truck positions a construction company to avoid a larger-than-necessary initial capital investment, resulting in a business plan that can look lighter on the investment column and heavier on the profit column. Beyond this, there are other advantages.

Bob Southern, president of PACCAR Leasing Company (PacLease), recently told Trucking for Construction:

• New leased trucks mean you need not pay a mechanic/technician who knows how to use computerized diagnostics;
• There's a shortage (38,000 per year through 2010) of truck maintenance technicians;
• Leasers can offer 'stand-by' emergency repair and offer substitute replacement vehicles;
• Lessees need not spend hours coping with governmental agency regulations;
• Leasing is an ideal way to remove the uncertainty of the used truck market.

Trucking for Construction explains that in today's world of minimizing supply chain risk due to delays caused by truck failures — whether engine, transmission, brake, tire, etc. — or accidents with subsequent missed deliveries, having a replacement truck or stand-by repair service available can help keep customers aware that the company has taken every possible step to plan for contingencies. And in the rush to deliver construction materials to complete the project on time, it is easy to put off maintenance — but this increases the chance of delays on future projects, which neither customers nor businesses can afford.

There is no excuse for not planning for the unanticipated.

Resources

Headwinds for truck engine makers getting stronger
by Nick Carey and James B. Kelleher
Reuters, March 28, 2007

Logistics market will give buyers a breather in 2007
by David Hannon
Purchasing, Jan. 18, 2007

Five reasons to analyze truck acquisitions
by Gregory Van Tighem
Trucking for Construction (Reed/ACP Construction Data), May 1, 2007

9 Tips for Buying Used Trucks
by Duff McCutcheon
Today's Trucking, March 18, 2006

Diesels set to out-strip hybrids in accelerating U.S. growth
UBS and Ricardo (via Truck Trend forums), May 24, 2007

Medium-duty choices
by Tom Kelley
Trucking for Construction (Reed/ACP Construction Data), May 1, 2007

Tips for Maintaining Trucks
Diynetwork.com