Precision Scheduled Railroading’s Various Effects The S&P 500 posted its best first half in 22 years. US Job openings outnumber the unemployed by widest gap ever. The U.S. economy continues to expand (2.1% in the Second Quarter). Yet U.S. Domestic rail freight volumes are down. Chinese challenges to the Western Global Trading System certainly are […]
Signs are evident in politics and trade negotiations that economic and geopolitical rivalries are creating global uncertainties. Avoiding turbulent weather is a combination of art and science. With cues from weather charts, radar returns, and real time reports from other aircraft, Pilots are trained to avoid thunderstorms and slow to ‘turbulence penetration speed’ to avoid […]
In an environment where uncertainty is commonplace, investment in transportation equipment is often driven by residual value estimates as lenders and lessors compete for market share. Many factors influence the future value of equipment. Most are not very predictable. All require an active aftermarket for the asset under consideration. Physical factors include wear and tear […]
The Chinese government has deployed strategies that help its state owned companies acquire state-of-the-art technologies in order to break into global markets. By leveraging the country’s low labor cost China exports more than $2 Trillion of goods a year (in 2018 the U.S. imported over $419 billion more goods from China than it exported to […]
Transportation equipment investment serves as an engine for economic development and job creation. It enables people and goods to access markets and services more efficiently and ‘induces’ demand growth. Available, reliable, and competitively priced alternatives allow business and consumers to shift their focus to business development and new consumption. Infrastructure investment works in a similar […]
Total carloads were down 8.9% in March while carloads for the first quarter were down 3.1%. Year-to-date coal is down 8.1%, grain down 5.2%, chemicals down 1.2%, and intermodal down 1.8%. Excluding coal and grain U.S. carloads were down 2.8% in March 2019 (from March 2018). The U.S. Energy Information Administration (EIA) reported 12.9 gigawatts […]
The 737MAX 8 was developed from the 737NG and certified by the FAA on March 8, 2017. The aircraft is powered by CFM LEAP-1B engines which are 12% more fuel efficient than the CFM56-7B engines used on the 737NG. The airframe has a length of 129 ft. 6 in. (39.47m), a wingspan of 117 ft. […]
Until Hunter Harrison, there was a lack of focus on how efficiently rail assets could be employed. Customers demanded service and the railroads invested. More equipment was better. The result was a consistent inability of the roads to cover their cost of capital. Herb Kelleher founded Southwest Airlines as a low cost no-frills regional. It […]
“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger, the other for opportunity. In a crisis be aware of the danger but recognize the opportunity.” – John F. Kennedy 2019 will create opportunities for those who are prepared. The reasons? Politics, the continued strength of the U.S. economy, […]
Factors to Consider for Transportation Investment Transportation asset finance is a growth business. Both the Aviation and Rail markets are healthy and long term investment trends remain favorable. With recent market volatility comes higher ranges of uncertainty. While investment risk may or may not increase over time, uncertainty grows at the square root of time. […]
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Adapt to an Improved Aero & Rail Investment OutlookAugust 4, 2025 - 7:21 pmThrough the first 29 weeks of this year (ended July 20), the Association of American Railroads reported North American rail volume up 2.3%. United Airlines CEO Scott Kirby reports passenger demand is picking up: “The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence.”[1] […]
Rail Uptick Defies Slowing GDP, While Aero OutperformsJuly 1, 2025 - 9:30 pmRail Uptick Defies Slowing GDP, While Aero Outperforms
Tariffs and Trade Shift MarketsJune 6, 2025 - 9:29 pmTariffs and trade shifts are affecting markets. Learn how aero and rail have reacted to these tumultuous times. Call RESIDCO.