Paul Bent and Diane Croessmann of Alta Group have penned a fascinating article highlighting the rise of Equipment-as-a-Service (EaaS). EaaS integrates equipment with related services into a single contract, offering performance- and usage-based models. Thus, this approach bundles capital assets and services, differing from traditional leasing by focusing on the servitisation of physical assets. End users, accustomed to subscription models, prefer EaaS for its flexibility, environmental benefits, and productivity improvements. EaaS allows for per-use payments without stringent commitments, requiring service providers to optimise asset use through sophisticated logistics for recycling and remarketing.
Faraday Future, an American EV OEM, announced it has secured $30m in financing from investors in the USA, Asia and the Middle East. This investment includes convertible notes and warrants priced at $5.24 and $6.29 per share, respectively. Faraday has made meaningful strides in the Middle East which has resulted in a significant investment from Sheikh Abdulla Al Qassimi (UAE). This new capital will be used to help the ongoing production of its FF 91 2.0 and further enhance product development and software updates.
AI is being embraced by the trucking industry as it can help enhance efficiency and productivity. AI applications in trucking include predictive maintenance, better route optimization, improved dispatching, and real-time management of ZEV range and charging. AI-powered tools like smart dashcams can detect drowsy or distracted drivers, while predictive analytics can identify drivers likely to have at-fault crashes. Generative AI, a recent advancement, can create images, text, sound, and video, further enhancing fleet operations. This technology allows for hands-free voice assistants and communication tools for drivers, improving overall fleet management. AI also aids in better maintenance scheduling, parts ordering, and inventory management. The integration of AI in trucking is still in its early stages, but its potential to transform fleet operations is immense. By leveraging AI, trucking companies can achieve levels of efficiency and productivity previously deemed impossible. As AI technology continues to evolve, it will play a crucial role in shaping the future of the trucking industry, making operations safer, more efficient, and more profitable
Black Book has released data that showcases that affordability is a crucial factor in the current wholesale market, with strength in segments like Mid-Size Cars and Small Pickups, which saw the largest increases during the week ending September 14th. Overall, the Car segment decreased by 0.01%, with Compact Cars rising by 0.07%, marking their 4th increase in 5 weeks. The Truck and SUV segment increased by 0.03%, with Small Pickups rising by 0.59%, marking their 5th consecutive week of gains.
The Federal Reserve recently cut the interest rate by 50 basis points which has been welcomed by the equipment finance industry. Thus, it helps lower borrowing costs which should increase demand for equipment loans and leases as businesses find financing more affordable. This surge in demand will benefit equipment financiers, who should consider targeting growing sectors like construction and medical markets. The rate cut also presents an opportunity for equipment financiers to broaden their market reach and capitalise on new business opportunities. Additionally, the reduction in borrowing costs may encourage companies that previously hesitated to invest in new or upgraded equipment to commit to financing. Existing customers might increase their commitments, and new customers will enter the market. The equipment finance sector, experiencing positive structural changes, will likely see continued growth as lending from captives and independents expands. Overall, the interest rate decrease is poised to create a favourable environment for equipment financing, driving demand and offering new opportunities for growth and profitability.
The American Car Rental Association has stated that the integration of EVs into fleets is being driven by environmental regulations and the push for sustainability. Companies are actively exploring various strategies to ramp up EV adoption by investing in charging infrastructure, leveraging government incentives, and adopting new technologies to improve EV efficiency and range. As technology continues to advance, the adoption of EVs in fleets is expected to become more feasible and widespread. EVs have been and must continue innovating, for example, in the last 5 years, the energy density of EV batteries has doubled and in coming years, solid-state batteries could replace/complement stronger lithium batteries providing longer ranges at lower costs. The focus is on practical solutions that can be implemented now to pave the way for a more sustainable future.
A recent survey by Frost & Sullivan, commissioned by WEX, reveals a significant shift towards mixed-energy fleets, with 80% of operators planning for at least 25% of their fleets to be EVs by 2030. Additionally, 42% of respondents aim for half or more of their fleet to be EVs by the same year. This transition is driven by the need for decarbonization, which 70% of participants consider a crucial part of their business strategy. The move to mixed-energy fleets, combining EVs and ICE vehicles, is seen as a gradual process rather than an immediate switch. This approach helps mitigate risks and allows businesses to adapt and learn as they transition. Regional variations in adoption rates highlight the importance of understanding local dynamics to optimize operations. The survey underscores that the focus is not on whether to transition but on how best to achieve it. Mixed-energy fleets offer a balanced strategy, enabling companies to maintain operational flexibility while moving towards full electrification when infrastructure and technology are ready. This strategic approach is essential for achieving long-term sustainability and operational efficiency.
Avina Clean Hydrogen has received permits to start building a hydrogen production and refuelling facility in southern California. The facility will produce 1,400 tonnes of compressed hydrogen annually, fuelling c100 fuel cell heavy-duty trucks and buses daily. The plant’s scalable design allows for future expansion to meet rising hydrogen demand and is set to begin operations in H1 2025. The plant’s goal is to provide cost-effective clean hydrogen for fleet operators aiming to decarbonize their vehicles. Avina partnered with Chart Industries, which will supply Howden compressors for hydrogen refuelling. These compressors ensure the safe and efficient transportation of compressed hydrogen. Additionally, Plug Power will deliver a containerized PEM electrolyser to the plant later in 2023. The 5MW electrolyser units are expected to produce up to two tonnes of hydrogen per day, supporting the facility’s operations and contributing to the clean energy transition.