According to IMF and the OECD, 80% of the world’s major economies are at full employment. Encouraged by immediate expensing and repatriation of cash from overseas, the U.S.’ traditionally robust consumer demand is now expected to be supplemented by productivity improving capital investment. Transportation investment markets follow traffic demand and with economic growth on the […]
The New Tax Law The Tax Cuts and Jobs Act (the ‘Act’) will be an investment game changer. It is expected to pass Congress and be signed by the President. It will lower the corporate tax rate to 21% and provide for 100% immediate expensing of capital investment (but only for five years). Currently, the […]
Investing In Transportation Transportation equipment investment is a long-term affair. It’s a complex business since investment risk and profit profiles change over an investment’s duration. At the macroeconomic level, the stage of the business cycle affects the value of everything, including leased air and rail equipment. When the economy is in recession, fewer people are […]
Changes In U.S. Law And Economy The U.S. Economy has sustained 3% growth for two consecutive quarters. Prospects for continued growth in 2018 are strong, and there is likely to be an extra boost if tax reform is passed by Congress. Rising household wealth and job gains suggest the Federal Reserve will raise rates in […]
The Impact of Natural Disasters On the Gulf Coast, Hurricane Harvey forced the shutdown of refineries and disrupted the production of plastic resins and refined oil products. The Union Pacific and Burlington Northern have lifted embargos for shipments to, from, or passing through the Gulf region. They continue to evaluate affected areas as repairs complete […]
Air carriers invest to improve profitability and expand share in the markets they choose to serve. Selecting the right aircraft and engines are vitally important to financial success. The process requires input from marketing, maintenance, engineering, finance, and the flight operations teams. There are numerous factors to consider, beginning with the composition of the carrier’s […]
U.S. domestic coal production peaked in 2008. The decline that followed was driven first by the politics of climate change and then by the shale gas revolution. Our coal production takes place in three major coal-producing areas, ‘Appalachia’, the ‘Interior’ (Illinois, Indiana), and the Powder River Basin’s ‘Western Coal[1]’. Substantially all moves by rail. With […]
The Importance of Infrastructure Infrastructure is one of the main factors of economic growth. This includes power, water, telecommunications, ports, roads, and rail. In a report by McKinsey Global Institute, the projected requirement for infrastructure investment is estimated to reach $57 trillion dollars from 2013-2030. This is to keep up with global GDP growth targets. […]
The first half of 2016 has seen its share of volatility. Globalization, central bank actions, the impact of the internet (speeding the flow of information and creating social networks), Presidential election politics, acts of global terror, and Brexit are all phenomena that have contributed. Historically, markets have not been as volatile. Declining rail freight volumes […]
Aviation investment is driven by profitability and the prospect for future growth. Recent mergers have resulted in the number of major carriers in the U.S. decreasing from 10 to 4[1]. This consolidation has created an oligopoly and helped the remaining players[2] take a more balanced approach to capacity management. They now control 80% of the […]
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AERO AND RAIL EQUIPMENT – CAPTURING COMPETITIVE ADVANTAGEJune 17, 2026 - 8:13 pmNewly confirmed Federal Reserve Chairman Kevin Warsh inherits an inflation rate that has been persistently above the Fed’s 2% target. People who have worked with him say he is unlikely to force outcomes the open market committee won’t support. Warsh feels the path to restoring Fed credibility runs through better methods for measuring and forecasting […]
AERO AND RAIL MARKETS – AN INVESTOR’S PLAYBOOKMay 1, 2026 - 7:32 pmIt’s happened before. The Arab Oil Embargo, which ran from October 1973 through March 1974, was a result of the Yom Kippur Arab-Israeli War.[1] Arab Petroleum Exporting Countries sought to stop oil to any country assisting Israel. Since the U.S. supplied Israel with weapons, a total U.S. oil embargo was imposed, resulting in the price […]
AERO AND RAIL INVESTMENT – ACT WHEN UNCERTAINTY CREATES OPPORTUNITY April 6, 2026 - 7:11 pmWith no slack in the system, demand for air travel continues to outpace expectations. Air passenger traffic has grown from approximately 665-677 million in 2000 to 930 million passengers today. Approximately 17.1 million passengers are projected to fly between March 1 and April 30 this year, with Airlines for America estimating roughly 2.8 million passengers […]