Changes in fleet leasing trouble OEMs without captive leasing operations

Outsourcing is not a new idea and the make-or-buy debate is no stranger to modern commerce. When, in 2012, Delta Airlines decided to buy a fuel refinery, many commentators thought it was mad. The US$150m investment has paid handsome dividends. When one of Delta's key suppliers - Boeing - opted to outsource production of various parts of the 787 to a global supply base, the result was rather less stellar. Despite the best efforts to reduce this argument to one that is essentially binary, the decision clearly is not - and the current debate around verticalisation within the North American truck industry provides clear evidence of this. But while much of the focus of this debate remains on the supply side of the industry, it’s important to keep an eye on how the customer base is changing.