Many New Jersey companies may still be reeling from the recession, but many small business owners are thinking positively about the economy and starting to make big-ticket purchases. Many purchases involve vans, due to two main reasons: old vans are wearing out, and business owners are feeling confident that the economy is on the upswing once again.
In the past, small companies delayed necessities, such as vehicles, because of the cost. The economy made it difficult to make these purchases, with borrowing at a standstill. However, 2014 is off to a good start, with credit becoming more accessible and businesses expecting increased profits.
Now is the time for companies who deliver goods, such as florists and pizza parlors, to ramp up their business, and replace worn out vans. Van sales are expected to rise to 400,000 units sold per year through 2015. This is an increase of 27%. In addition, even though auto sales dropped 3% this past January, van sales increased by 9% at the same time. This is good news for auto manufacturers, who are working to produce new and improved versions of minivans and full-sized vans.
Small business owners know that to make money, sometimes they have to spend money. This may seem contradictory to a company's business plan, but investments are sometimes necessary to grow a company. A company may require multiple vehicles in order to thrive and with the economy improving, now's the time to take a financial risk and be optimistic about the future.
Source: Newsday, " Small-business owners investing in vans again," Tom Krisher, Mar. 2, 2014