The robust demand and stable resale values of vocational trucks are fueling growth in the construction equipment finance sector.
Projected to nearly double from $6.8 billion in 2024 to $11.6 billion by 2031, the vocational truck market is positioned for significant expansion, according to market analysis from Verified Market Research. Typical vocational vehicles in construction encompass dump trucks, concrete mixers, truck-mounted cranes, and flat beds.
One example of a specialty vehicle gaining popularity is the Warlock vacuum truck, launched by construction manufacturer Ditch Witch in 2023. Jody Ray, a relationship manager at BMO Bank North America, which serves as Ditch Witch’s primary financing partner, highlighted its role in energizing financing activities.
“In the initial months of this year, we’ve observed a rise in financing or leasing compared to last year,” Ray noted. “Being a new product and collaborating closely with Ditch Witch has led to a favorable lease arrangement for the equipment, prompting a positive customer response to the various options for the Warlock.”
Furthermore, lenders are experiencing heightened interest in vocational trucks used in forestry, such as boom trucks and boom-elbow trucks, according to John Gougeon, president of UniFi Equipment Finance. He attributed this increasing demand to seasonal factors as spring approaches.
There is also strong financing demand for oilfield equipment, including lowboy trailers and heavy-duty tow tractors, partly due to large banks stepping back from these markets, stated Gougeon.
Stable Resale Values
The strong demand for vocational trucks reflects the overall growth in the construction industry, driven by large commercial and infrastructure developments such as data centers and distribution hubs.
Vocational trucks are appealing to lenders due to their solid resale values. Paul Fogle, managing director at Quality Equipment Finance, mentioned, “Vocational trucks, especially those with cranes or buckets, tend to see demand spikes at this time of year, making them an asset with consistent value over time.”
