Commercial vehicle-related spending among small to medium-sized businesses (SMBs) is up, primarily due to a surge in leasing versus buying, a trend which is likely being driven by cash flow and capital access challenges related to the pandemic. This is one of the key findings of a commercial transportation study released by Cargo of over 800 SMBs across North America who utilize trucks and vans for their businesses.

The increase in spending on commercial vehicles (CVs), when compared with the pre-pandemic period, is being propelled by the success of such SMBs as couriers, last-mile delivery services, and construction companies. Further, SMBs plan to spend even more on CVs over the next twelve months, with the trend toward leasing remaining in the forefront – 40 percent say they will spend more via leases, 26 percent will spend more through rentals, and 30 percent will spend more via straight purchases.

Small Businesses Spending More on Commercial Vehicles

The most recent "Heads Up" study also revealed that 55 percent of SMBs want their fleets to be increasingly electric, and 70 percent also say that Connected Vehicle Technology is a high priority, with a need to "facilitate remote monitoring," and "making fleet management easier" given as their major motivations. In fact, the data also shows that 44 percent of SMBs have already made investments in connectivity and other technologies, citing safety reasons, improved fuel efficiency, and reduced maintenance costs as the top reasons for such spending.

"This study confirms our belief that most SMBs not only weathered the pandemic, but often prospered through it, and now they are looking to their commercial vehicle partners for innovation, technology, and connectivity solutions that will make them even more disruption-proof going forward," said Miki Velemirovich, President of Cargo, an expert on the transportation industry, and a former executive at Mercedes-Benz.