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# RESIDCO

Honesty and Equitable Dealing.

## Sitemaps

- [XML Sitemap](https://residco.com/sitemap.xml): Contains all public & indexable URLs for this website.

## Posts

- [AERO AND RAIL EQUIPMENT INVESTMENT – WHAT’S MOVING THE MARKETS](https://residco.com/aero-and-rail-equipment-investment-whats-moving-the-markets/) - Wondering what's moving the markets this summer? Our latest post digs into rail volumes, supply-constrained aero, and AI's impact on investments.
- [AERO AND RAIL EQUIPMENT - CAPTURING COMPETITIVE ADVANTAGE](https://residco.com/aero-and-rail-equipment-capturing-competitive-advantage/) - There's a competitive advantage to be captured in aero and rail. Demand is high, and both provide a solid foundation. To discuss opportunities, call RESIDCO.
- [AERO AND RAIL MARKETS – AN INVESTOR’S PLAYBOOK](https://residco.com/aero-and-rail-markets-an-investors-playbook/) - Aero and Rail opportunities can be broken into three strategic investment categories depending on risk appetite and time horizon. Read this post to learn more.
- [AERO AND RAIL INVESTMENT – ACT WHEN UNCERTAINTY CREATES OPPORTUNITY ](https://residco.com/aero-and-rail-investment-act-when-uncertainty-creates-opportunity/) - Air travel demand hits record highs while rail carloads post their best February since 2019. RESIDCO's 2026 outlook on aviation and rail equipment investment.
- [AERO AND RAIL ECONOMICS DRIVE ROBUST OPPORTUNITIES](https://residco.com/aero-and-rail-economics-drive-robust-opportunities/) - On February 12, 2026, the U.S. Environmental Protection Agency (“EPA”) finalized the single largest deregulatory action in U.S. history, rescinding the 2009 Obama-era ‘Endangerment Finding’ and eliminating Federal greenhouse gas emission (‘GHG’) standards for motor vehicles and engines.[1] Using models utilized by previous administrations, the EPA determined that even if the U.S. were to eliminate
- [ECONOMICS AND ASSET VALUATIONS BOOST AERO AND RAIL EQUIPMENT INVESTMENT](https://residco.com/economics-and-asset-valuations-boost-aero-and-rail-equipment-investment/) - Economics and asset valuations boost investment in 2026. Aero and Rail investment requires deep knowledge getting the economics and residual valuations right.
- [RESIDCO Announces Closing of $100 Million Commercial Aircraft Engine Acquisition Facility Provided by Huntington National Bank](https://residco.com/residco-announces-closing-of-100-million-commercial-aircraft-engine-acquisition-facility-provided-by-huntington-national-bank/) - RESIDCO closes a $100 million commercial aircraft engine acquisition facility with Huntington National Bank to drive global expansion. Read more.
- [RAIL & AERO MERGERS PROLIFERATE IN A SOUND ECONOMIC CIRCUMSTANCE](https://residco.com/rail-aero-mergers-proliferate-in-a-sound-economic-circumstance/) - Explore the latest transportation merger trends 2026, including the historic UP-NS rail filing and Boeing’s acquisition of Spirit AeroSystems.
- [POSITIVE MARKET SENTIMENT DRIVES 2026 AERO AND RAIL SECTORS ](https://residco.com/positive-market-sentiment-drives-2026-aero-and-rail-sectors/) - Positive market sentiment drives the 2026 aero and rail sectors. Get expert insight into production rates, railcard growth, and themes for midlife assets.
- [2026 Investment Outlook - Market Support for Aero and Rail Continues](https://residco.com/2026-investment-outlook-market-support-for-aero-and-rail-continues/) - Despite economic uncertainty, the 2026 investment outlook indicates strong market support for aero and rail. Discover key insights from RESIDCO. Call RESIDCO.
- [Q4 Aero and Rail Ascending](https://residco.com/q4-aero-and-rail-ascending/) - Get the full picture on Q4 aero and rail investment with analysis of Fed rate cuts, rising rail traffic, bonus depreciation, and US manufacturing growth.
- [Expect a Major Rail Consolidation](https://residco.com/expect-a-major-rail-consolidation/) - Explore the upcoming major rail consolidation and its implications for competition, public interest, and national defense. Stay informed with RESIDCO.
- [Adapt to an Improved Aero & Rail Investment Outlook](https://residco.com/adapt-to-an-improved-aero-rail-investment-outlook/) - Explore the evolving landscape of Aero and Rail investments, featuring growth trends, trade agreements, and insights to capitalize on emerging opportunities.
- [Rail Uptick Defies Slowing GDP, While Aero Outperforms](https://residco.com/rail-uptick-defies-slowing-gdp-while-aero-outperforms/) - Despite global uncertainties and a slowing GDP, North American rail freight volumes are stable and commercial aerospace demand remains strong. Call Residco.
- [Tariffs and Trade Shift Markets](https://residco.com/tariffs-and-trade-shift-markets/) - Tariffs and trade shifts are affecting markets. Read about how the aerospace manufacturing and rail industries have reacted to these tumultuous times.
- [Market Disruptions Bolster Aero & Rail Investment](https://residco.com/market-disruptions-bolster-aero-rail-investment/) - A weaker dollar and U.S. Treasury market volatility have bolstered hard asset aero and rail investments. Call Residco to learn more about how to prepare.
- [New Regime Decisions Reverberate Through Aero & Rail](https://residco.com/new-regime-decisions-reverberate-through-aero-rail/) - The first quarter of 2025 has seen a government shutdown averted, a spending bill, government reductions, and tariffs. Focus on the bigger picture with RESIDCO.
- [Growing Aero and Rail Investments](https://residco.com/growing-aero-and-rail-investments/) - U.S. Economic Policy Uncertainty Index is at its highest. Are we at a peak in aero and rail investments? To answer that question, call RESIDCO.
- [2025 Core Themes for Aero and Rail Investment](https://residco.com/2025-core-themes-for-aero-and-rail-investment/) - Strong GDP growth, sticky inflation, and a soft landing–core themes for aero and rail investment. The economy's performance in 2025 will drive the Fed’s future interest rate decisions. Higher ticket revenues and lower energy prices (jet fuel is expected to be less expensive in 2025) will benefit air carriers. The International Air Transport Association estimates the
- [Looking Forward to 2025 Aero and Rail Investment](https://residco.com/looking-forward-to-2025-aero-and-rail-investment/) - November’s jobs report exceeded expectations (payrolls increased by 227,000[1]) yet the Fed lowered its benchmark interest rate December 18th by a quarter of a percentage point (to between 4.25% and 4.5%). Fed Chairman Powell’s recap: “I think we’re in a good place, but I think from here it’s a new phase and we’re going to
- [Aero & Rail Investment on the Brink of 2025](https://residco.com/aero-rail-investment-on-the-brink-of-2025/) - How will Republican lawmakers reshape tax policy? Will the “Department of Government Efficiency” recommendations result in reductions of regulatory red tape, cost, and Federal Government Agency restructuring? Are Tariffs a solution that will drive manufacturing growth when the real problem is the high cost of U.S. Labor?[1] Would a Domestic Manufacturing corporate tax reduction spur
- [Aero and Rail Investments Post-Election Prospects Remain Bright](https://residco.com/aero-and-rail-investments-post-election-prospects-remain-brigh/) - The IMF expects the U.S. economy to grow 2.5% in the fourth quarter. Business investment, ample energy supplies, and consumer spending have led to increased productivity. After the Fed cut interest rates by half a percentage point in September economists are generally positive. The Conference Board’s leading economic index indicates continued moderate growth for the
- [Mid-Life Aero and Rail Equipment Delivering Higher Yields](https://residco.com/mid-life-aero-and-rail-equipment-delivering-higher-yields/) - For the third quarter of 2024, the Federal Reserve Bank of Atlanta’s "GDPNow" model is estimating real U.S. GDP growth of 2% (a seasonally adjusted annual rate)[1]. July’s World Economic Outlook Update expects the U.S. GDP to grow by 1.9% in 2025[2]. The Bureau of Labor Statistics (“BLS”) Consumer Price Index for all urban consumers, (CPI-U)
- [Fall Election Risk Impact on Aero and Rail](https://residco.com/fall-election-risk-impact-on-aero-and-rail/) - 1600 Pennsylvania Avenue. What are markets anticipating? Interest rates, Inflation risk, Global unrest, Trade barriers, Government spending, a new Democratic nominee, or a second Trump presidency? Will there be a pro-business climate after the election, less regulation, more drilling, continued tax cuts, and lower interest rates? Recall the 2017 Tax Cuts and Jobs Act cut the corporate tax
- [Understanding General Aviation & Flight Training](https://residco.com/understanding-general-aviation-flight-training/) - The Federal Aviation Administration (“FAA”) grants authority to operate scheduled air service in the form of Federal Aviation Regulations (“FAR”). Air carriers authorized to operate under Part 121 are generally large, U.S.-based airlines, regional air carriers, and all cargo operators. Most would consider the General Aviation (“GA”) category to include only light, small-engine private aircraft but even
- [This Summer - Opportunities for Aero and Railcar Investment](https://residco.com/this-summer-opportunities-for-aero-and-railcar-investment/) - Year to date Rail carloads through the end of April totaled 3.63 million, down 4.8% from last year. Total carloads have fallen year over year in each of the first four months of this year. Excluding coal however, total carloads are up 2% over April 2023 and have risen year over year in each of the last
- [Strong Secondary Markets Drive Aero and Railcar Investment](https://residco.com/strong-secondary-markets-drive-aero-and-railcar-investment/) - The U.S. economy expanded 2.5% in 2023 (3.4% in Q4). While growth slowed to 1.6% in 2024’s Q1[1] the International Monetary Fund expects U.S. GDP to expand 2.7% in 2024, up from their October forecast of 1.5%. Global economic output (in the face of geopolitical strife) is expected to expand by 3.2% in 2024 (up from an
- [New Equipment Quality Control Issue, Bolsters Demand for Midlife Aircraft](https://residco.com/new-equipment-quality-control-issue-bolsters-demand-for-midlife-aircraft/) - Moving pieces. Third Quarter U.S. GDP growth was revised down to 4.9% from November’s 5.2% second estimate. The National Association for Business Economics is expecting 2024 GDP growth to slow to 1% with a recession risk in the next 12 months under 50%. As inflation slows and with a "soft landing" in sight, the Fed
- [A Soft Landing Arrives](https://residco.com/a-soft-landing-arrives/) - The Fed’s preferred inflation measure, the core personal consumption expenditures price index (“PCE”) fell to 1.9% in November. This latest data confirms inflation is slowing. On a year-over-year basis, the PCE was 2.6%, the lowest since February 2021. With the full impact of interest rates yet to be felt (housing is struggling, and the Conference
- [Aero Exceeds GDP Growth as Rail Flatlines](https://residco.com/aero-exceeds-gdp-growth-as-rail-flatlines/) - Rail traffic volumes remain challenged while Air Carriers face capacity constraints as they attempt to meet the rebound in domestic and international flights. United reported solid domestic and record-breaking international performance with third-quarter revenues up 12.5% year over year. The company set a record for the highest-ever daily average of revenue passengers carried in a quarter
- [Railroads Confront Deleterious New Regs](https://residco.com/railroads-confront-deleterious-new-regs/) - Equipment and crew availability affect service levels for both Aero and Rail. Both Rail shippers and the flying public are interested in consistent, reliable service. Rail transit times from pick-up to the last mile are particularly important. The Surface Transportation Board (“STB”), responding to Shipper Rail service complaints, issued a Notice of Proposed Rulemaking (Ex Pate No.
- [Maintenance Management - Protecting Aero and Rail Asset Valuations](https://residco.com/maintenance-management-protecting-aero-and-rail-asset-valuations/) - Most Aircraft operating leases provide that the lessee is responsible for maintaining leased aircraft to required industry standards. To ensure flight safety the FAA issues Airworthiness Directives (ADs) and aircraft manufacturers issue Service Bulletins (SBs). ADs are legally enforceable regulations meant to correct unsafe conditions. Airframes, engines, avionics, and other aircraft components (landing gear, auxiliary
- [Demand Continues to Drive Equipment Investment](https://residco.com/demand-continues-to-drive-equipment-investment/) - Pent up demand from pandemic lockdowns. Government stimulus ($5 Trillion). The Fed’s past abnormally low interest rate policy. These are the causes of the current distortions in economic activity. U.S. annual Core consumer price inflation remains high, 5.3%[1]. Wage growth continues. American Airlines pilots agreed to a new contract that boosts pay by 21% in
- [Clean Energy Goal Challenges - Aero & Rail Equipment Planning](https://residco.com/clean-energy-goal-challenges-aero-rail-equipment-planning/) - Locomotives, typically classified as 50-year assets, are primarily electrically driven. Despite the common label as 'diesels,' they are better described as 'hybrid-electric' vehicles. This is because their diesel engine powers an alternator which generates the electricity required to operate the electric traction motors mounted on the locomotive's axles. As reported by the American Association of
- [Aero & Rail Operations – Managing Investment Risk](https://residco.com/aero-rail-operations-managing-investment-risk/) - Weight and balance limits of aircraft are crucial for ensuring flight safety. Incorrect weight distribution significantly impacts flight performance, and neglecting or performing incorrect preflight calculations can have fatal consequences. From 2008 to 2016, approximately 136 general aviation accidents were likely caused by pilots failing to complete or conduct preflight performance calculations for weight and
- [Aero & Rail Leasing Opportunities Improve](https://residco.com/aero-and-rail-leasing-opportunities-improve/) - On March 23rd, 2023, the Federal Reserve voted unanimously1 to raise the interest rate paid on reserve balances by a quarter of a percentage point to 4.9%, marking the highest level since 2007. Although the federal funds rate range of 4.75% to 5% is above the Federal Reserve's 2% target inflation rate, the annual inflation
- [Constrained Supply Bolsters Equipment Rent & Values](https://residco.com/constrained-supply-bolsters-equipment-rent-values/) - After increasing 3.2% in the third quarter year, the U.S. economy grew at a 2.9% annual rate in last year’s fourth quarter. The Federal Reserve’s preferred price index slowed to 3.2%. Inflation appears to be cooling, but labor, and supply chain challenges remain. Higher interest rates are impacting demand in manufacturing and services. The labor
- [Expect Higher Transportation Equipment Lease Rates In 2023](https://residco.com/expect-higher-transportation-equipment-lease-rates-in-2023/) - The International Air Travel Association expects the global aero industry to earn a $4.7 billion profit in 2023. U.S. and major European air carriers are better off than Asian (particularly China) carriers. Coming out of the pandemic, pent up air travel demand increased domestic load factors. Equipment and labor became operational challenges. As capital costs
- [Aero & Rail Investment Needs Persist in a Sea of Uncertainty](https://residco.com/aero-rail-investment-needs-persist-in-a-sea-of-uncertainty/) - Aero and Rail equipment investors focus on both current short term challenges and longer term benefits that support the underlying strategies of their transportation equipment clients. Short term headwinds include inflation, interest rates, a rail strike yet to be resolved, resurgence of COVID-19 in China, deglobalization, a strong U.S. dollar, and continuing gridlock in Congress
- [Supply Chain Disruptions Bolster Equipment Demand](https://residco.com/supply-chain-disruptions-bolster-equipment-demand/) - For the past thirty years global supply chains helped keep U.S. inflation low. Globalization led to offshoring. Aero and Rail transport system efficiencies allowed ‘just in time’ inventory control. The pandemic exposed the over reliance on global supply chains. The U.S. fiscal policy response to the pandemic’s impact included more than $5 trillion of direct
- [Aero & Rail Transport Demand After The Midterms](https://residco.com/aero-rail-transport-demand-after-the-midterms/) - Despite concerns over the Fed’s interest rate hikes air travel remains resilient. United expects continuing demand will drive profits through the end of this year. JetBlue expects strong demand for leisure travel through the fall and struck a deal in July to buy Spirit Airlines in a $3.8 billion deal to create the fifth-largest U.S.
- [Price Levels Surge As Growth Stalls](https://residco.com/price-levels-surge-as-growth-stalls/) - The annual inflation rate in the US accelerated to 9.1% in June, the highest since November of 1981, up from 8.6% in May and above market forecasts of 8.8%. Energy prices rose 41.6%, the most since April 1980, boosted by gasoline (59.9%, the largest increase since March 1980), fuel oil (98.5%), electricity (13.7%, the largest
- [Aero & Rail Investment - A Midyear Macro Perspective](https://residco.com/aero-rail-investment-a-midyear-macro-perspective/) - Aero and Rail investment operate at the intersection of financial services and the real economy. The past decade of low interest rates has driven asset values up. Add the five trillion in aggressive stimulus spending passed by Congress and U.S. inflation is at a four-decade high. During the Covid lockdowns transportation operations were streamlined by
- [Managing Aero and Rail Investment Through a Post-COVID Recovery](https://residco.com/managing-aero-and-rail-investment-through-a-post-covid-recovery/) - As demand returns, post-COVID transportation markets are struggling to maintain service levels. Precision Scheduled Railroading (“PSR”) with its asset and workforce reductions worked to reduce Class One operating ratios. Over the five years before the pandemic the Class Ones had already reduced headcount 33% through attrition and layoffs. During the pandemic workforce reduction continued as
- [A Storm of Fundamental Challenges Create Aero and Rail Opportunities](https://residco.com/a-storm-of-fundamental-challenges-create-aero-and-rail-opportunities/) - A strong labor market is driving wage inflation and a falling unemployment rate (now 3.6%, just above the 3.5% it was before the pandemic). Even though the U.S. GDP was down 1.4% in the first quarter, rail carloads originated in March were up 1.2% year over year. The unexpected GDP drop was driven by a
- [Russian Ukrainian Invasion Upends Aero and Rail Outlooks](https://residco.com/russian-ukrainian-invasion-upends-aero-and-rail-outlooks/) - Investment and financing decisions involve an evaluation of risk, amount and timing of cash flows, and expected equipment values over an investment horizon. The outlook for Aero and Rail cash flows for the balance of 2022 have changed as the Global community reacts to Russia’s invasion of Ukraine. Even though Russia is a signatory to
- [War & Inflation Converge, Pitfalls & Opportunities Emerge](https://residco.com/war-inflation-converge-pitfalls-opportunities-emerge/) - Coming out of the pandemic and in the early stages of a recovery, the world is responding to Putin’s choice to invade Ukraine. The impact on investor confidence is reflected in the market’s volatility. Crude oil prices are up. Rail and air freight capacity from Asia to Europe has been eliminated. The European Union Aviation
- [Unlocking Aero & Rail Equipment Values Amidst Surging Inflation](https://residco.com/unlocking-aero-rail-equipment-values-amidst-surging-inflation/) - Global growth continues but is expected to slow to 4.1% in 2022 (down from 5.5% in 2021[1]). In the U.S., 2022’s growth is expected to be 3.7% (down from 5.6% in 2021). In the fourth quarter of last year, the U.S. GDP grew at a 6.9% annualized rate. With the domestic economy stronger, inflation has
- [Transportation's Challenge: Taming Stock Outs and Inflation](https://residco.com/transportations-challenge-taming-stock-outs-and-inflation/)
- [Air & Rail Market Dynamics Set Stage for 2022](https://residco.com/air-and-rail-market-dynamics-set-stage-for-2022/) - The pandemic stopped a decade of profitable air carrier operations (in 2020 U.S. air carriers lost $35 Billion compared to a $14.7 Billion profit in 2019). In today’s lower traffic environment single aisle jets remain attractive, accounting for 70% of expected new equipment deliveries over the forecast horizon (split between the 150-seat market A320, Boeing 737MAX8
- [Transportation Equipment Values Headed Up](https://residco.com/transportation-equipment-values-headed-up/) - The $1 Trillion infrastructure bill. When it passes it will be one of the most substantial federal investment programs and will drive demand for freight rail growth. For years global trade held inflation in check. The pandemic shut the system down. The Fed’s monetary policy and government spending have fueled strong consumer demand. Now we
- [Finding Value In Midlife Air and Rail Equipment](https://residco.com/finding-value-in-midlife-air-and-rail-equipment/) - Not so long ago the typical freight railcar had a new cost below $50,000. Today, a newly built freight railcar is in the $100,000 to $150,000 range. Both rail and aero assets present long-term investment opportunities. Railcars have up to a fifty-year interchange life. The economic useful life of an aircraft or aircraft engine is
- [National Transport Policy Impacts Investment Alternatives](https://residco.com/national-transport-policy-impacts-investment-alternatives/) - Rail and air transportation plays a central role in our nation’s economy. The government’s fiscal decisions, monetary policies, and administrative agency rulings influence the outcomes and the economics of transportation investment opportunities. The Surface Transportation Board’s unanimous ruling that the Canadian National hasn’t demonstrated its use of a voting trust would be consistent with the
- [Freight Cars Recover while China Thwarts Boeing's MAX](https://residco.com/freight-cars-recover-while-china-thwarts-boeings-max/) - New railcar orders rose 80% to 6,227 in the first quarter of 2021 from the fourth quarter of 2020 as rail freight volumes improved. Lease rates are showing improvement (but remain “soft”1). Greenbrier: “We’re seeing a broad-based need across all sectors and all businesses. Shippers are pursuing larger, higher-capacity railcars as a means to optimize
- [Air and Rail Investment Post-Covid](https://residco.com/air-and-rail-investment-post-covid/) - The U.S. economy is opening up. Forty-seven percent of the U.S. population has been fully vaccinated. Most states have lifted restrictions. Over the last year, Congress has passed $4 trillion in fiscal stimulus. The updated Congressional Budget Office forecast expects GDP growth to reach 7.4% in 2021. The recovery is exceeding expectations and may turn
- [Post-Covid Demand Bolsters Aero & Rail Sectors](https://residco.com/post-covid-demand-bolsters-aero-rail-sectors/) - It was only fourteen months ago that Covid-19 appeared shutting down economies and disrupting international traffic. Last fall’s elections led to a new Administration and a continuation of tariffs on Chinese products1. First tariffs, then the pandemic. Both have significantly disrupted domestic and global aviation transportation. Those disruptions, and “Precision Scheduled Railroading” have also changed
- [Rail and Aero Investment Strategy As Traffic Returns](https://residco.com/rail-and-aero-investment-strategy-as-traffic-returns/) - The March weekly average of total rail carloads (231,232) was up 4.1% over March 2020 (total carloads for the last two weeks of March were up 7.3% over comparable weeks of 2020). Intermodal volume was up 24% over March 2020, that’s the biggest monthly gain ever. Following a 25.6% gain in the fourth quarter of
- [CPKC Positioning For Post Pandemic Rail Growth](https://residco.com/cpkc-positioning-for-post-pandemic-rail-growth/) - Once approved by the Surface Transportation Board, the combination of the Canadian Pacific and Kansas City Southern (the two smallest Class One Railroads by revenues1) can be expected to drive a modal shift from truck to rail. The combined "Canadian Pacific Kansas City", or CPKC, will remain the smallest Class One. After the combination, a
- [Rapid Covid Recovery to Bolster Equipment Leasing](https://residco.com/rapid-covid-recovery-to-bolster-equipment-leasing/) - As vaccinations increase and COVID cases fall, a stronger domestic economy is coming. With the $1.9 trillion fiscal stimulus bill becoming law (the ‘American Rescue Plan Act’), the Organization for Economic Cooperation and Development has said the U.S. economy will accelerate twice as fast as expected this year. Congress has now authorized six major ‘stimulus’
- [AERO OEMs Tackle Market Tumult](https://residco.com/aero-oems-tackle-market-tumult/) - 2020 with its historic pandemic presented airframe OEMs with hurdles that demanded problem-solving and a willingness to pivot from the traditional way of doing things. To manage cost many had outsourced components and reduced inventories. The pandemic provided production breathing room and an opportunity to improve global supply chain management. Faced with demand challenges Airbus
- [Comeback Economy— Invest Productively](https://residco.com/comeback-economy-invest-productively/) - Dr. Anthony Fauci has predicted, “it will be open season for vaccinations in the U.S. by April”. Supply boosts are expected to allow most people to get shots to protect against COVID-19 by then. Herd immunity could be achieved by late summer. With continuing low-interest rates and Fiscal stimulus provided by the CARES act (passed
- [Climate Isn’t The Only Thing Changing](https://residco.com/climate-isnt-the-only-thing-changing/) - Energy is a universal and necessary requirement for both rail and commercial aviation. Diesel-powered locomotives pull freight on all nonelectrified railways around the world. Gas-powered turbines made intercontinental passenger flight efficient and affordable. Because many believe fossil-fuel energy unfavorably impacts the environment, there is a growing belief that climate risk must be considered in evaluating
- [Opportunity As Washington Shifts Focus](https://residco.com/opportunity-as-washington-shifts-focus/) - During his campaign, Biden promised “a second great railroad revolution” to ensure America has the cleanest, safest, and fastest rail system in the world for both passengers and freight. That commitment is part of a pledged $2 Trillion investment in infrastructure, transit, power, electric vehicles, charging stations, and ‘green’ buildings with the goal of net-zero
- [2021 - Expect the Unexpected](https://residco.com/2021-expect-the-unexpected/) - A consensus is typically believed to be a rough picture of what is to come. By nature, we tend to move in crowds and weigh recent experience more heavily. Not knowing any better, we extrapolate the future from the present. Most are now expected to be vaccinated by mid-2021. When the pandemic clears, economists think
- [Energy’s Dynamics Disrupt Transportation Investment](https://residco.com/energys-dynamics-disrupt-transportation-investment/) - Clean energy, zero-emissions, and an incoming Administration poised to rejoin the Paris Climate Agreement. This year’s Covid lockdowns have cut global fuel demand 30% driving a global drop in carbon emissions (down 7% in 2020). The lockdowns impacted transportation which accounts for 24% of global carbon dioxide (CO2) emissions. Road travel (passenger vehicles and trucking)
- [MAX Comes Back to Exacerbate Supply Amid Tepid Demand](https://residco.com/max-comes-back-to-exacerbate-supply-amid-tepid-demand/) - On November 18, 2020, the FAA rescinded its Emergency Order that had grounded the 737 MAX since March 13, 2019. The order allows Boeing to resume delivering the jets and will allow U.S. passenger flights to resume pending mandated fixes and additional pilot training. American Airlines had taken delivery of twenty-four MAX aircraft before the
- [Air Carriers And Class One Railroads Reshape Their Fleets](https://residco.com/air-carriers-and-class-one-railroads-reshape-their-fleets/) - Our current environment is the result of external market shocks. Nearly every air and rail transportation asset now is faced with an unexpected demand profile. The pandemic’s lockdowns and stay at home orders have caused the largest global recession in history, impacting hotels, restaurants, commercial aviation, theaters, and live entertainment. Class One Railroad PSR business
- [Investment Strategies in a Low-Demand Environment](https://residco.com/investment-strategies-in-a-low-demand-environment/) - Air and Rail networks have lost substantial revenues. First Rail freight traffic due to trade disagreements, tariffs, and the downturn in coal, and then both Air and Rail due to the impact of the Covid-19 shutdowns. Economics remains challenging. The landscape that has emerged was unexpected. Air Carriers are zero base budgeting equipment needs, personnel
- [Transportation Traffic - Better Than Before](https://residco.com/transportation-traffic-better-than-before/) - Global freight traffic flows are recovering. U.S. and German manufacturers surveyed in late August reported a ‘jump’ in export orders, “Container traffic is approaching the level reached before the corona crisis”. In the U.S. seasonally adjusted imports (inbound TEU’s) are up significantly on the West Coast, and Domestic North American Intermodal container volumes have fully
- [Sequential Improvements Point to a Recovery](https://residco.com/sequential-improvements-point-to-a-recovery/) - Second Quarter year over year comparisons are down but sequential growth is evident in the third quarter. A timeline towards recovery is beginning to take shape. Manufacturing is expanding (but from a lower base). Factories across the U.S., Europe, and Asia increased production in July but were held back by weak global trade (export orders
- [Unlock Pockets Of Opportunity](https://residco.com/unlock-pockets-of-opportunity/) - The Global economy is projected to contract 4.9% in 2020, with World merchandise traffic falling 13 to 32% and a 50 to 60% decline in air passenger revenue miles. In response, more than two-thirds of governments across the world have scaled up fiscal support with budget measures now standing at 6% of GDP on average.
- [Market Realities Transform Transportation Investment](https://residco.com/market-realities-transform-transportation-investment/) - Liquidity buffers, loans, restructuring operations, cost savings. As the pandemic lingers it continues to depress economic activity. The drop in passenger traffic is driving air carriers to constantly adjust network flight schedules and evaluate equipment needs and workforce reductions. United is exploring the possibility of a fall workforce reduction and American is considering similar plans.
- [Identifying Midyear Opportunities](https://residco.com/identifying-midyear-opportunities/) - Aviation and rail equipment lease rates and equipment values are stressed as operators adjust equipment capacity to meet current levels of demand (and adjust to the Class One Roads implementation of Precision-scheduled railroading “PSR”). In the near term, lessees are focused on ensuring the sustainability of their business by attempting to defer new delivery commitments
- [Transportation Bottoming Out Onto a Bumpy Road](https://residco.com/transportation-bottoming-out-onto-a-bumpy-road/) - As the U.S. economy began to reopen, investors looked past the pandemic and optimism drove financial markets to within 4.5% of their all-time high. Lockdowns eased and a stronger than expected jobs report (2.5 million new jobs added in May) indicated the U.S. economy was impatient to reopen. American and Delta reported progress in summer
- [As Demand Recovers, What’s On The Horizon?](https://residco.com/as-demand-recovers-whats-on-the-horizon/) - Domestic economies are beginning to reopen as evidenced by the number of TSA airport security screening checks. They totaled 87,534 April 14th and by May 25th had tripled to 257,451. “We’re past the trough in terms of peak damage”. Much of the pickup reflects the states’ decisions to open parts of their economies. While global
- [China-US Imports Rise Yet Rail Freight Contracts](https://residco.com/china-us-imports-rise-yet-rail-freight-contracts/) - With economies ‘locked down’ and travel restricted, the pandemic has disrupted U.S. industrial production and impacted derived domestic rail freight traffic negatively. The Federal Reserve reported manufacturing output fell by 13.7% in April, its largest monthly decline dating back to 1919. Record declines in spending and employment are creating State budget disasters. Furloughs caused by
- [Navigate to Tomorrow’s Fleet Environment](https://residco.com/navigate-to-tomorrows-fleet-environment/) - The past aviation super cycle was driven by growing demand from Asia’s emerging middle class (China) as well as the expansion of no-frills carriers. With much of the world now subject to air travel restrictions more than two-thirds of the world’s passenger aircraft are parked. The reality is that most of these aircraft will be
- [Black Swan Event Portends Extended Rolling Recovery](https://residco.com/black-swan-event-portends-extended-rolling-recovery/) - As the coronavirus spread across the world, the recession we were unable to predict arrived.
- [Freight Demand Sustains Transportation Equipment Investment](https://residco.com/freight-demand-transportation-investment/) - Air cargo represents less than one percent of global trade by tonnage but amounts to $6 trillion worth of goods moved every year.
- [Demand Shock](https://residco.com/demand-shock/) - The coronavirus was the turning point. Schools and universities are being closed. Public activities are being canceled. Air travel and supply chains are being disrupted. Companies are telling employees to stay put. The virus constitutes a force majeure event. Even before the U.S. ban on travel from Europe, Air Carriers were reacting by trimming capacity,
- [2020 Equipment Values](https://residco.com/2020-equipment-values/) - Residual value forecasting for transportation equipment often begins with an expected value curve that traces ‘value decay’ over an asset’s assumed useful life.
- [Loss Aversion: the B737MAX & PSR “Precision Scheduled Railroading"](https://residco.com/loss-aversion-the-b737max-psr-precision-scheduled-railroading/) - Strategic decisions are never simple. Despite the significant resources investment managers devote to the decision process, they often make judgments that go wrong because of human shortcomings.
- [PSR Dampens Freight Car Demand as China Trade Revs Up](https://residco.com/psr-dampens-freight-car-demand-as-china-trade-revs-up/) - Eliminating hump yards and running fewer, longer, ‘scheduled’ trains, the Class One’s are continuing to implement Precision Scheduled Railroading (“PSR”).
- [Headwinds & Heads-Up for Bank-Owned Rail Portfolios](https://residco.com/headwinds-heads-up-for-bank-owned-rail-portfolios/) - When a National Bank invests in personal property, the Code of Federal Regulations, Title 12 Part 23, and the Office of the Comptroller of the Currency provides regulatory investment guidelines.
- [Turbulent Markets Lead to Opportunity](https://residco.com/turbulent-markets-present-opportunity/) - Investor interest continues to demonstrate market confidence in Air and Rail transportation equipment.
- [A Decade of Disruption and What To Expect](https://residco.com/a-decade-of-disruption-and-what-to-expect/) - “A new decade stretches before us.” Crosscurrents from the past decade have swept the unprepared away, so a review of the past decade’s challenges will help instruct future investment. Optimizing investment management will always require a deep understanding of markets, end-user needs, current fleet dynamics, and equipment designs. Boeing’s 737MAX, the Class One’s singular focus
- [2020 - The Challenge](https://residco.com/2020-the-challenge/) - Parsing 2020: restated, third-quarter real gross domestic product increased at an annual rate of 2.1%. As well, consensus economic forecasts predict growth at a moderate pace. Inflation, as measured by the CPI, is expected to edge up. And unemployment is anticipated to remain below 4%. The business fixed investment will continue to slow due to
- [Managing the Components of Risk](https://residco.com/managing-the-components-of-risk/) - With more volatility likely, what’s the maximum level of risk you are willing to take in next year’s markets? The answer requires knowledge of the impact changing traffic levels will have on the values of specific equipment types and portfolio credits. Values that will be driven by the economic, financial, and political environment over the
- [Implementing ASC 842 New Lease Accounting Proves Complex & Significant](https://residco.com/implementing-asc-842-new-lease-accounting-proves-complex-significant/) - A new leasing standard The Financial Accounting Standards Board (FASB) issued its new leasing standard, Accounting Standards Update (ASU) No. 2016-02, Leases (ASC 842), in February 2016. It’s bringing $2 trillion of operating leases onto public company balance sheets, affecting the entities that enter into lease arrangements or sign contracts containing service agreements that support
- [Globalism Retreat Reduces Freight Traffic](https://residco.com/globalism-retreat-reduces-freight-traffic/) - “Economic Nationalism” The President’s September 24th address to the United Nations promoted ‘sovereignty’ above international relations. “The future belongs to sovereign and independent nations, who protect their citizens, respect their neighbors and honor the differences that make each country special and unique.” His favorite themes? Unfair trade, imbalanced defense spending, illegal immigration, creeping socialism, and
- [Republic Airways and the Sanctity of Contracts Validly Formed](https://residco.com/republic-airways-and-the-sanctity-of-contracts-validly-formed/) - Article 1, Section 10, of the U.S. Constitution (the “Contract Clause”) contains a list of prohibitions concerning the role of the States in political, monetary, and economic affairs [1]. The laws of some countries require damages that may be recovered for breach of contract or other obligations be limited to the level of damage or
- [Adapting To Declining Traffic](https://residco.com/adapting-to-declining-traffic/) - Weak international trade is hurting international airfreight. Global airfreight volume has fallen for 10 consecutive months year over year (the longest losing streak since 2008). In the three months ended August, North American airlines’ U.S. dollar revenue from air-cargo between China and the U.S. fell 26% relative to the same period in 2018. While transportation
- [Storms on the Horizon - Navigating Uncertainty](https://residco.com/storms-on-the-horizon-navigating-uncertainty/) - Mounting Trade Concerns Slow Supply Chains Brace for slower economic growth. Freight volumes in the United States and around the World are falling due to escalating trade tensions and an uncertain future. Most recessions have been brought on by mistakes in some combination of fiscal, monetary or financial supervision. Former Fed Chairman Ben Bernanke once
- [Precision Scheduled Railroading ("PSR") - A Freight Transportation Disruptor](https://residco.com/precision-scheduled-railroading-psr-a-freight-transportation-disruptor/) - 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
- [Growth Impediments Top Mid-Year Market Concerns](https://residco.com/midyear-market-concerns/) - 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
- [Value Investing in a Turbulent Market](https://residco.com/value-investing-in-a-turbulent-market/) - "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,
- [Creating Air and Rail Portfolio Alpha](https://residco.com/creating-air-and-rail-portfolio-alpha/) - 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
- [China Trade Conflict – A New Normal](https://residco.com/china-trade-conflict-a-new-normal/) - 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 Infrastructure Demands Smart Investment Management](https://residco.com/transportation-infrastructure-demands-smart-investment-management/) - 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
- [MAX8 Tragedies Implicate Flight Controls](https://residco.com/max8-tragedies-implicate-flight-controls/) - 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.
- [A Platform For Sustainable Investment](https://residco.com/a-platform-for-sustainable-investment/) - 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
- [Economic Uncertainties?](https://residco.com/economic-uncertainties/) - 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
- [Navigating Transportation Investment](https://residco.com/navigating-transportation-investment/) - 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.
- [Headwinds or Tailwinds?](https://residco.com/headwinds-or-tailwinds/) - The Economy's Recent State There is plenty of good news for the U.S. economy. The Fed maintains the economy is growing at a "solid rate" and inflation is near its 2% target. GDP growth for 2019 is forecast to remain over 2%. As the Fed pauses interest rate hikes, the era of central bank intervention
- [Wake Up its 2019: Leasing's Effective Date has Arrived](https://residco.com/wake-2019-leasings-effective-date-arrived/) - ASC 842 - The New Leasing Standard Investment analysis and business implications? US public companies will now be reporting under the new leasing standard (ASC 842) for fiscal years, and interim periods within those fiscal years, which took effect on Dec. 15, 2018. For calendar year-end public companies that means an adoption date of Jan.
- [Equity Market Volatility Belies Strong Economic Fundamentals Clouding 2019 Prospects](https://residco.com/equity-market-volatility-belies-strong-economic-fundamentals-clouding-2019-prospects/) - As we close out 2018, it’s time to look ahead. What’s in store for 2019? Equity markets and global political conditions are volatile while the fundamentals of the U.S. economy remain strong. Market turbulence can be caused by a number of factors; the impacts of some we can forecast, the impacts of others are not
- [The Goal: Driving Up Asset Utilization](https://residco.com/goal-driving-asset-utilization/) - Past Challenges Before Hunter Harrison, the prevailing view was more locomotives, more railcars, and more crews allow for the movement of more volume. But because track and yard capacity is finite, adding more equipment creates congestion and slows the system. While it is counterintuitive, reducing fleet size enables a road to move more volume by
- [Exploring Regional Jet Investment Opportunities](https://residco.com/exploring-regional-jet-investment-opportunities/) - What is a regional jet? The commercial aviation fleet consists of large passenger jets with over 100-seating capacity and regional jet aircraft with up to 100-seats capacity. Regional jets fly routes that can’t be flown profitably with the larger aircraft. About 43% of all domestic major carrier U.S. flights use the smaller regional jets to
- [Rethinking Transportation Equipment Investment Planning](https://residco.com/rethinking-transportation-equipment-investment-planning/) - How Tax Law Changes Affect Investment Planning Recent tax law changes provide an opportunity for rethinking investment planning. Consider how you might optimally structure investment in air and rail transportation equipment in today’s tax environment. Planning offers advantages when a solid understanding of the various ‘decision contexts’ that give rise to tax opportunities are understood.
- [Aviation Investment Returns](https://residco.com/aviation-investment-returns/) - U.S. Economic Expansion Revenues among the leading airline groups rose more than 10% last year and operating profits remain at historic highs. The economic indicators that make up the Conference Board Leading Economic Index were up .2% in May suggesting we may be approaching a ‘late growth stage’ of the current cycle. Most U.S. economic
- [Inbound Capital Equipment Investment](https://residco.com/inbound-capital-equipment-investment/) - Changing Legal Landscape With a highly developed, liquid, and efficient secondary equipment market, strong corporate governance, and stable legal institutions, the U.S. has traditionally provided foreign investors with a stable and welcoming market. Prior to the recently passed Tax Cuts and Jobs Act (“TCJA”, the “Act”), there was a tendency to lend into the US
- [Farnborough Airshow 2018 Showcases Robust Commercial Aircraft Demand](https://residco.com/farnborough-airshow-2018-showcases-robust-commercial-aircraft-demand/) - Farnborough Airshow 2018 The 2018 Farnborough Airshow is an aviation industry networking hub connecting over 1,500 exhibiting companies and 73,000 trade visitors. Held every two years, this year the Farnborough Airshow takes place between Monday, July 16, through Sunday, July 22. As global GDP has grown, the demand for passenger and air cargo traffic has
- [Top Categories Drive Rail Investment Opportunities](https://residco.com/top-categories-drive-rail-investment-opportunities/) - Rail freight transportation has grown over time with the expansion of the population and economic activity in the U.S. The markets are dynamic. Freight demand is driven primarily by the geographic distribution of the population and the level of economic activity (consumer spending and online ordering have made UPS the largest single rail customer). The
- [Robust Growth Drives Traffic – Belies Trade Tensions](https://residco.com/robust-growth-drives-traffic-belies-trade-tensions/) - Transportation plays a fundamental role in global market integration. The traffic flows of trading nations affect the structure and location of manufacturing facilities, the frequency of trips, distances travelled, transport modes, and equipment selected. Aviation Traffic Global air cargo traffic is up. The heads of air cargo surveyed by IATA remain positive in their outlook
- [Technology, Tariffs, and Trade Impact Traffic](https://residco.com/technology-tariffs-and-trade-impact-traffic/) - Transportation equipment investment is a long-term play. While the Conference Board’s index of leading economic indicators suggests the U.S. economy will enjoy solid growth through the end of this year, there are areas where headwinds and complexity exist. China and America’s Trade The Trump Administration imposed 25% tariffs on $50 billion of Chinese goods “that
- [Predictive Analytics for Investment & Operations Optimization](https://residco.com/predictive-analytics-investment-operations-optimization/) - A Growing American Economy The U.S. economy is heading into the second half of 2018 with strong momentum. Nonfarm payrolls are beating expectations. Manufacturing and construction indexes are accelerating. Economists are expecting growth through the end of the year between 3.6% and 4.8%. Economic activity, passenger, and both domestic and global air and rail freight
- [Rising Oil Price Unlikely to Thwart Aero and Rail Transport Demand](https://residco.com/rising-oil-price-unlikely-thwart-aero-rail-transport-demand/) - Global Economic Forecast Investment forecasts are driven by models built on expected levels of economic activity. Shifting international dynamics and the impact of the U.S. Administration’s economic policies are driving changes. While oil prices remained below $50 for most of 2017, recent volatility reminds us there is uncertainty as to their future direction. OPEC has
- [Tax Cut & Jobs Act Un-Levels the Rail & Air Investment Playing Field](https://residco.com/tax-cut-jobs-act-un-levels-the-rail-air-investment-playing-field/) - Investment in air and rail assets involves complex disciplines. These include financing, legal, bankruptcy, jurisdictional analysis, documentation skills, insurance knowledge, residual collateral value expertise, tax structuring, accounting (under the new lease accounting rules), and an understanding of the after-tax cash economics of loan vs. tax lease pricing. Secured lending is a credit risk and collateral
- [How The Tax Cuts and Jobs Act Will Affect The Transportation Marketplace](https://residco.com/tax-cuts-jobs-act-will-affect-transportation-marketplace/) - Changing Tax Consequences Whether you are an investor or a service provider, the Tax Cuts and Jobs Act (the “TCJA”) has changed the tax consequences for entities that compete in the transportation equipment lease finance marketplace. Investment stands on the marginal revenues and cost (including tax) it generates. The great news: TCJA reduces the after-tax
- [Tax Reform: An Investment Game Changer](https://residco.com/tax-reform-investment-game-changer/) - 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
- [The State of the Aviation Industry in 2018](https://residco.com/the-state-of-the-aviation-industry-in-2018/) - Demand in Aviation Global passenger traffic is growing faster than expected. The International Air Transport Association (IATA) expects 6.0% revenue passenger kilometer (“RPK”) growth for the year, above the 5.5% long-term trend. This level of RPK growth is indicative of the robust demand in the aviation sector. Rising fares coupled with continuing (but still relatively)
- [Confident About Growth](https://residco.com/confident-about-growth/) - 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
- [Aviation Energy Economics Reshape Flight](https://residco.com/aviation-energy-reshape-flight/) - 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
- [Major Tax and Reporting Changes Greet 2018](https://residco.com/major-tax-reporting-changes-greet-2018/) - 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
- [2018: There is Room for Growth](https://residco.com/2018-room-growth/) - 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
- [Rail Traffic - Simple Answers?](https://residco.com/rail-traffic-simple-answers/) - Rail Traffic Landscape AAR statistics demonstrate rail freight traffic volumes correlate closely with changes in overall GDP (except for grain, coal, and crude oil product movements, which are not tied to GDP). With tax policy improving the outlook for GDP growth (2018 is now expected to be 2.9%[1]), the Conference Board index of leading indicators
- [An Investment Roadmap - Risk-Adjusted Returns](https://residco.com/investment-roadmap-risk-adjusted-returns/) - When comparing investment returns it is misleading to simply look at headline figures. At first glance, it might seem an investment that gained 12% last year is better than one that gained 9%. In reality, it depends on how much risk was involved in generating those returns. The more risk (or volatility), the less probable
- [Tomorrow's Markets](https://residco.com/tomorrows-markets/) - 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 Big Picture](https://residco.com/the-big-picture/) - The most important decision an investor makes is the composition of his or her investment portfolio. That is what ultimately acts to determine the level and potential variability of returns. Research shows dissimilar asset classes act to increase returns while reducing risk. From an investment perspective, an aircraft or railcar under lease represents a stable
- [Transportation Investing in a Turbulent World](https://residco.com/transportation-investing-in-a-turbulent-world/) - 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.
- [Economies of Energy Stabilize Coal by Rail](https://residco.com/economies-energy-stabilize-coal-rail/) - 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
- [Finding Value in Disruption: Hurricanes and Carloads, and CSX's Plan for the Future](https://residco.com/finding-value-disruption/) - 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
- [Transportation Asset Values and Tax Policy](https://residco.com/transportation-asset-values-and-tax-policy/) - Government taxes to encourage (or discourage) a variety of economic activities. The rates set influence the market’s required before-tax rates of return for both individual and business investments. From a social standpoint, taxes are designed to finance public projects, redistribute wealth, and provide basic services. Since self-interest is basic to human nature this creates private
- [Washington 2017](https://residco.com/washington-2017/) - Times are changing! Expect a pro-growth business policy agenda in Washington (with little to no Congressional gridlock). Competitive tax rates. Less restriction on energy reserves, shale, oil and natural. Approval of the Keystone XL oil pipeline. A cut in regulatory red tape and an end to the ‘war on coal.’ A reform of Obamacare and
- [Has Traffic Bottomed?](https://residco.com/has-traffic-bottomed/) - 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
- [Handling the Cycle: It’s Not Luck](https://residco.com/handling-the-cycle-its-not-luck/) - Government taxes to encourage (or discourage) a variety of economic activities. The rates set influence the market’s required before-tax rates of return for both individual and business investments from a social standpoint, taxes are designed to finance public projects, redistribute wealth, and provide basic services. Since self-interest is basic to human nature this creates private

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## Awesome Team Member

- [Glenn Davis](https://residco.com/aw-team-member/glenn-davis/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet
- [Scott Daniels](https://residco.com/aw-team-member/scott-daniels/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet
- [Dave Kolber](https://residco.com/aw-team-member/dave-kolber/) - Michael is responsible for all treasury and control functions at RESIDCO. He has over a decade of experience managing and overseeing complex big ticket equipment lease transactions and has expertise in both the book and tax aspects of lease accounting. He is also actively involved in the cash management, annual audits, tax reporting and overall
- [Mike Lewiki](https://residco.com/aw-team-member/mike-lewiki/) - Michael is responsible for railcar marketing activity in the eastern and southwestern United States. Mr. Lewicki has over 30 years experience in the North American freight railcar industry, specializing in remarketing, credit analyses and asset management of operating fleets of railcars. Previously Mr. Lewicki was Vice President of Asset Management with BTMU Capital Corporation, a
- [Kevin Bahnline](https://residco.com/aw-team-member/kevin-bahnline/) - Kevin is responsible for railcar marketing activity in the Central and Western United States. He has nearly 20 years of North American freight and passenger rail experience specializing in both locomotive and railcar asset types. At RESIDCO, he assists in managing and implementing marketing and sales strategies to meet corporate goals while focusing on both
- [Michael Yovkovich](https://residco.com/aw-team-member/michael-yovkovich/) - David is involved with the management, origination and remarketing of RESIDCO’s aviation portfolio. Prior to RESIDCO, Mr. Kolber was a Director in the Strategic Planning department at AERCAP, managing a global team of analysts who provided guidance on the economic and technical implications of the company’s leasing and trading activity. David supported hundreds of transactions
- [Vincent A. Kolber](https://residco.com/aw-team-member/vincent-a-kolber/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet
- [Deborah Edwards](https://residco.com/aw-team-member/deborah-edwards/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet
- [Greg Schmid](https://residco.com/aw-team-member/greg-schmid/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet
- [Andrew Sisti](https://residco.com/aw-team-member/andrew-sisti/) - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque dictum neque quis metus aliquam, eu faucibus neque ultricies. In velit lectus, ullamcorper non lorem a, tempor gravida erat. In molestie ligula ac accumsan fermentum. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce placerat ligula in luctus eleifend. Duis sit amet

## Logos

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- [DUKEENERGY_2](https://residco.com/kwlogos/dukeenergy_2/)
- [Duke Energy Logo](https://residco.com/kwlogos/duke-energy-logo/)
- [AIRATLANTAICELANDIC](https://residco.com/kwlogos/airatlantaicelandic/)
- [AEROUNION](https://residco.com/kwlogos/aerounion/)
- [SWIFTAIR](https://residco.com/kwlogos/swiftair/)
- [3M](https://residco.com/kwlogos/3m/)
- [3M_2](https://residco.com/kwlogos/3m_2/)
- [CONOCOPHILLIPS](https://residco.com/kwlogos/conocophillips/)
- [CONOCOPHILIPS_2](https://residco.com/kwlogos/conocophilips_2/)
- [BP](https://residco.com/kwlogos/bp/)
- [NORFALCO](https://residco.com/kwlogos/norfalco/)
- [Dow](https://residco.com/kwlogos/dow/)
- [BNSF Logo](https://residco.com/kwlogos/bnsf-logo/)
- [AIRCANADA](https://residco.com/kwlogos/aircanada/)
- [WESTJET](https://residco.com/kwlogos/westjet/)
- [Oxy Logo](https://residco.com/kwlogos/oxy-logo-2/)
- [Union Pacific Logo](https://residco.com/kwlogos/union-pacific-logo/)
- [Boliviana](https://residco.com/kwlogos/boliviana/)
- [OXY Logo](https://residco.com/kwlogos/oxy-logo/)
- [General Recycling Logo](https://residco.com/kwlogos/general-recycling-logo/)
- [Cemex Logo](https://residco.com/kwlogos/cemex-logo/)
- [CSX Logo](https://residco.com/kwlogos/csx-logo/)
- [FedEx Logo](https://residco.com/kwlogos/fedex-logo/)
- [Alaska Airlines Logo](https://residco.com/kwlogos/alaska-airlines-logo/)
- [ComAir Logo](https://residco.com/kwlogos/comair-logo/)
- [Delta Logo](https://residco.com/kwlogos/delta-logo/)
- [Sky West Logo](https://residco.com/kwlogos/sky-west-logo/)
- [United Logo](https://residco.com/kwlogos/united-logo/)
- [Continental Airlines Logo](https://residco.com/kwlogos/continental-airlines-logo/)
- [Medium Size Metal Company Logo](https://residco.com/kwlogos/medium-size-metal-company-logo/)
- [Railcon Logo](https://residco.com/kwlogos/railcon-logo/)
- [AMG Logo](https://residco.com/kwlogos/amg-logo/)
- [Bank of America Logo](https://residco.com/kwlogos/bank-of-america-logo/)
- [DJJ Logo](https://residco.com/kwlogos/djj-logo/)
- [Major Chemical Logo](https://residco.com/kwlogos/major-chemical-logo/)
- [Martinair Logo](https://residco.com/kwlogos/martinair-logo/)
- [Teco Energy Logo](https://residco.com/kwlogos/teco-energy-logo/)
- [Magellan Logo](https://residco.com/kwlogos/magellan-logo/)
- [American Falcon Logo](https://residco.com/kwlogos/american-falcon-logo/)
- [Hawaiian Logo](https://residco.com/kwlogos/hawaiian-logo/)
- [Ltex Rail Logo](https://residco.com/kwlogos/ltex-rail-logo/)
- [Class 1 Rallroad Logo](https://residco.com/kwlogos/class-1-rallroad-logo/)
- [US Airways Logo](https://residco.com/kwlogos/us-airways-logo/)
- [Sun Country Logo](https://residco.com/kwlogos/sun-country-logo/)
- [Merpati Logo](https://residco.com/kwlogos/merpati-logo/)
- [Lanchile Logo](https://residco.com/kwlogos/lanchile-logo/)
- [Lab Logo](https://residco.com/kwlogos/lab-logo/)
- [Boeing](https://residco.com/kwlogos/boeing/)
- [Xcel Energy Logo](https://residco.com/kwlogos/xcel-energy-logo/)
- [Major Operation Lessor Logo](https://residco.com/kwlogos/major-operation-lessor-logo/)
- [Major Utility Logo](https://residco.com/kwlogos/major-utility-logo/)
- [Shortline Logo](https://residco.com/kwlogos/shortline-logo/)
- [WT&L Logo](https://residco.com/kwlogos/wtl-logo/)
- [DM&E Logo](https://residco.com/kwlogos/dme-logo/)
- [Eastman Logo](https://residco.com/kwlogos/eastman-logo/)
- [Shortline Railroad Logo](https://residco.com/kwlogos/shortline-railroad-logo/)
- [Eka Logo](https://residco.com/kwlogos/eka-logo/)
- [Kinder Morgan Logo](https://residco.com/kwlogos/kinder-morgan-logo/)
- [Olin Logo](https://residco.com/kwlogos/olin-logo/)
- [Sinclair Logo](https://residco.com/kwlogos/sinclair-logo/)
- [Sultran Hidden Logo](https://residco.com/kwlogos/sultran-hidden-logo/)
- [Transglobal Logo](https://residco.com/kwlogos/transglobal-logo/)
- [Western Rail Logo](https://residco.com/kwlogos/western-rail-logo/)
- [AES Logo](https://residco.com/kwlogos/aes-logo/)
- [Plastic Compounder Logo](https://residco.com/kwlogos/plastic-compounder-logo/)
- [Tealinc Logo](https://residco.com/kwlogos/tealinc-logo/)
- [Bank of America Logo](https://residco.com/kwlogos/bank-of-america-logo-2/)
- [Canexus Logo](https://residco.com/kwlogos/canexus-logo/)
- [Cape Rail Logo](https://residco.com/kwlogos/cape-rail-logo/)
- [Midwest Steel Logo](https://residco.com/kwlogos/midwest-steel-logo/)
- [PL Logo](https://residco.com/kwlogos/pl-logo/)
- [Row Logo](https://residco.com/kwlogos/row-logo/)
- [ESI Logo](https://residco.com/kwlogos/esi-logo/)
- [Everest RS Logo](https://residco.com/kwlogos/everest-rs-logo/)
- [NRG Logo](https://residco.com/kwlogos/nrg-logo/)
- [Pepsi America Logo](https://residco.com/kwlogos/pepsi-america-logo/)
- [Progress RS Logo](https://residco.com/kwlogos/progress-rs-logo/)
- [Conrail Logo](https://residco.com/kwlogos/conrail-logo/)
- [Dtroit Logo](https://residco.com/kwlogos/dtroit-logo/)
- [Farmland Logo](https://residco.com/kwlogos/farmland-logo/)
- [First Commercial Bank Logo](https://residco.com/kwlogos/first-commercial-bank-logo/)
- [GE Logo](https://residco.com/kwlogos/ge-logo/)
- [Hoechst Logo](https://residco.com/kwlogos/hoechst-logo/)
- [HBT Logo](https://residco.com/kwlogos/hbt-logo/)
- [Illinois Logo](https://residco.com/kwlogos/illinois-logo/)
- [KCS Logo](https://residco.com/kwlogos/kcs-logo/)
- [IHB Logo](https://residco.com/kwlogos/ihb-logo/)
- [Prorail Logo](https://residco.com/kwlogos/prorail-logo/)
- [Multch Logo](https://residco.com/kwlogos/multch-logo/)
- [Reliant Logo](https://residco.com/kwlogos/reliant-logo/)
- [TTX Logo](https://residco.com/kwlogos/ttx-logo/)
- [TEP Logo](https://residco.com/kwlogos/tep-logo/)
- [Unimin Logo](https://residco.com/kwlogos/unimin-logo/)
- [Union Carbide Logo](https://residco.com/kwlogos/union-carbide-logo/)
- [Concord](https://residco.com/kwlogos/concord/)
- [Cargill](https://residco.com/kwlogos/cargill/)
- [US Rail Logo](https://residco.com/kwlogos/us-rail-logo/)

## Categories

- [Uncategorized](https://residco.com/category/uncategorized/)
- [Blog](https://residco.com/category/blog/)
- [News](https://residco.com/category/news/)
- [Research](https://residco.com/category/research/)
- [Aviation](https://residco.com/category/avation/)
- [Rail](https://residco.com/category/rail/)
- [Capital Market](https://residco.com/category/capital-market/)
- [Investment](https://residco.com/category/investment/)

## Tags

- [Aviation](https://residco.com/tag/aviation/)
- [Rail](https://residco.com/tag/rail/)
- [Capital Markets](https://residco.com/tag/capital-markets/)
- [Tax](https://residco.com/tag/tax/)
- [Transportation Equipment Investment](https://residco.com/tag/transportation-equipment-investment/)
- [Investment](https://residco.com/tag/investment/)
- [positive sentiment](https://residco.com/tag/positive-sentiment/)
- [Merger](https://residco.com/tag/merger/)

## Carousels

- [Home Logo](https://residco.com/kwlogos-carousel/home-logo/)
- [Aviation Logo](https://residco.com/kwlogos-carousel/aviation-logo/)
- [Capital Markets](https://residco.com/kwlogos-carousel/capital-markets/)
- [Rail](https://residco.com/kwlogos-carousel/rail/)