Insights from TCI Transportation’s Mike Margarone
In an era where efficiency, sustainability, and adaptability are paramount, the commercial truck leasing industry stands at the forefront of transportation evolution. Few understand this landscape better than Mike Margarone, VP of Sales for Leasing and Rental at TCI Transportation. With over three decades of experience in the industry, Margarone brings a wealth of knowledge and a fresh perspective to one of the most dynamic sectors in transportation.
In this in-depth interview, we sit down with Mike to explore the intricacies of commercial truck leasing, the challenges facing the industry, and the innovative approaches TCI is taking to stay ahead of the curve. Whether you’re a seasoned industry veteran or new to the world of transportation, this conversation promises to shed light on the future of leasing and the role it plays in shaping the broader transportation landscape.
Introduction
Can you tell us about your journey in the transportation industry and how you ended up at TCI Transportation?
I started in this industry fresh out of college back in 1985 with a large truck rental and leasing company. After a couple of years, I moved to a regional leasing company where I really grew my career. I started in sales, worked my way up to VP of sales, and eventually became the president and CEO. I spent 34 years there until the company was sold to a competitor.
As for TCI, I knew them from the industry. They had a strong reputation for quality and great customer service, which really impressed me. When the opportunity came up, I jumped at the chance to join the team.
What stood out to you about TCI once you came on board?
I’ve been blown away by a few things. First off, TCI is incredibly diversified. They’re always on top of the latest technology and systems to bring the most efficient solutions to their customers. It’s not just about having trucks on the road; it’s about staying ahead of industry trends.
What really struck me, though, is their commitment to safety. It’s not just talk – they’ve been recognized and rewarded for their safety programs and their safety record. In this business, that’s huge. It tells you a lot about a company’s values and how they operate.
The people here really live up to the company’s reputation. There’s a real dedication to doing right by the customer that you can feel throughout the organization. It’s been exciting to be part of a team that’s so focused on quality and innovation.
Understanding Full-Service Commercial Truck Leasing
For those who might not be familiar, can you break down what full-service commercial truck leasing is all about?
There’s an old saying in business: if you can’t do it better in-house, you outsource. That’s really what full-service commercial truck leasing is all about. For many companies, transportation is a necessity, but it’s not their specialty. That’s where we come in.
We give customers all the benefits of operating their own fleet without the headaches of truck ownership. We spec out a vehicle that fits the customer’s exact needs. Then we take care of all the maintenance, repairs, licensing, and compliance. We even provide support and safety services.
In a nutshell, we’re giving you all the control and benefits of having your own fleet to serve your customers, but none of the drawbacks. It’s about letting businesses focus on what they do best while we handle the complexities of fleet management.
How does this compare to owning a fleet in terms of costs and day-to-day operations?
When you own a fleet, you’re looking at significant upfront costs. You’ve got to acquire the vehicles, maintain them, and eventually deal with disposing of them when they’re past their prime. Not to mention all the ongoing costs and management headaches in between.
With leasing, it’s a whole different ball game. There are no upfront costs, no vehicle acquisition headaches, and no disposal costs at the end of the line. Instead, you’re looking at a straightforward monthly bill. This gives customers true budgeted transportation – they know exactly what their costs are going to be month to month.
But it’s not just about costs. Leasing provides value in other ways too. Our customers always have access to the latest equipment and technology. This isn’t just about having shiny new trucks – it’s about improved efficiency, better fuel economy, and enhanced safety features. All of this adds up to controlled costs and improved driver retention. In today’s market, where good drivers are hard to come by, that’s a huge advantage.
When you look at the big picture – the financial predictability, the access to top-notch equipment, the simplified operations – leasing often comes out ahead for many businesses. It’s about giving them the tools they need to serve their customers better, without the overhead and complexity of fleet ownership.
TCI’s Approach and Competitive Advantage
In a competitive industry like this, what sets TCI apart from other leasing companies?
I think it really comes down to our people and their commitment. We’re family-owned, which gives us a level of personal investment you don’t always see in larger corporations. But don’t get me wrong – we’ve got all the capabilities of any size company out there.
What makes us unique is that we combine the resources of a large operation with the flexibility and personal touch of a smaller company. Our ownership is actively involved in all aspects of the business. This means we can make quick decisions and provide customized solutions for our customers. We’re not bound by layers of corporate bureaucracy.
But at the end of the day, it’s living up to our five core values that truly set us apart – being Dedicated, Positive, Innovative, Ethical, and Accountable. These aren’t just words on a wall – they guide everything we do, from how we interact with customers to how we approach problem-solving.
How does TCI stay ahead of industry trends and changes?
One of our big initiatives is keeping our fleet equipped with the latest technology offered by manufacturers. We’re talking about things like collision mitigation systems, advanced communication technology, and onboard cameras. This isn’t just about having the newest gadgets – it’s about having the safest, most efficient fleet possible.
We also invest heavily in our people. We recently brought on a staff member who specializes in new technologies, particularly as we look into electric vehicles for our fleet. The transition to EVs is happening, and we want to make sure we’re not just keeping up, but leading the way.
Beyond that, we’re always looking at industry trends and regulations. For instance, there are new emission requirements coming in 2027 that will reduce what internal combustion engines can produce. We’re already working on strategies to help our customers navigate these changes.
Customer-Centric Approach
How does TCI build and maintain strong connections with its customers?
It really all comes down to communication and feedback. We’re big believers in open communication, both internally and with our customers. It’s not just about talking – it’s about listening and really understanding what our customers need.
One thing we do that I think sets us apart is we involve multiple people from our company in building relationships with our customers. It’s not just the account rep who knows the client. We make sure our leadership team, our service managers, and other key personnel are all engaged with our customers on an ongoing basis.
Our leadership team, for instance, meets regularly with both our staff and our customers. This isn’t just a once-a-year check-in. We’re talking about consistent, ongoing dialogue. It helps us stay on top of any issues, understand changing needs, and really become partners in our customers’ success.
Can you share how this customer-centric focus helps improve your clients’ operations?
By maintaining close relationships and open lines of communication, we’re able to spot opportunities for efficiency gains or service improvements that our customers might not have considered.
For example, we might notice that a customer could benefit from a different type of vehicle for certain routes, or that they could optimize their fleet usage with some adjustments to their operations. Because we’ve built trust and really understand their business, our customers are often open to trying new solutions that we suggest.
The results of this approach can be significant. Customers often see improvements in efficiency, cost control, and their ability to serve their own customers better. It’s not just about providing trucks – it’s about providing solutions that transform operations.
Evolving Technology and Sustainability in Leasing
What do you see as the most significant technological changes impacting the industry right now?
It’s an exciting time in our industry. We’re seeing changes that are really reshaping how we operate. I’d say there are two big trends that are going to shape our future.
First, there’s the electrification of vehicles. This isn’t just a fad – it’s a fundamental shift in how we think about transportation. We’re seeing more and more interest in electric trucks, and the technology is advancing rapidly.
The second major trend is the new emission requirements coming in 2027. These are going to significantly reduce the emissions that internal combustion engines can produce. It’s a big change, and it’s going to impact everyone in the industry.
But it’s not just about the vehicles themselves. We’re also seeing huge advancements in telematics, safety systems, and fleet management software. All of this technology is making fleets more efficient, safer, and easier to manage.
How is TCI approaching the transition to electric vehicles?
We’re taking a proactive approach. We recognize that this transition is happening, and we want to be at the forefront. We’ve begun incorporating electric trucks into our fleet, including yard tractors for moving trailers and delivery trucks.
But it’s not just about having the vehicles. We’ve also brought on specialists whose job is to research and implement these new technologies. They’re not only educating our team but also working with our customers to help them understand the benefits and challenges of electric vehicles.
We’re looking at things like range, charging infrastructure, and how these vehicles perform in different applications. It’s all about gathering real-world data so we can provide the best advice and solutions to our customers as this technology becomes more prevalent in the industry.
Can you talk about TCI’s commitment to sustainability and compliance?
Sustainability isn’t just a buzzword for us – it’s a core part of our strategy moving forward. We’re committed to reducing our environmental impact and helping our customers do the same.
We’ve added staff specifically to research best practices in sustainability and roll them out to our locations. This isn’t just about electric vehicles – it’s about looking at every aspect of our operation and finding ways to be more environmentally friendly.
As for compliance, that’s something we take very seriously. Our service group works hand-in-hand with our compliance department as part of our day-to-day operations. We’re constantly training and updating our processes to ensure we’re not just meeting, but exceeding regulatory requirements.
The key here is that we see sustainability and compliance as opportunities, not burdens. By staying ahead of the curve, we’re able to provide better service to our customers and contribute to a cleaner, more efficient transportation industry. It’s good for our business, good for our customers, and good for the planet.
Industry Challenges and TCI’s Solutions
What are some of the biggest challenges the leasing sector is facing today?
We’re in an industry that’s always evolving, but I’d say we’re facing some particularly significant challenges right now. The two big ones that come to mind are keeping up with technology and hiring qualified technicians.
On the technology front, it’s not just about having the latest gadgets. It’s about integrating new systems, adapting to changing regulations, and helping our customers navigate these changes. For example, we’ve got the shift towards electric vehicles, new emissions requirements coming in 2027, and constantly evolving safety and telematics systems. It’s a lot to keep up with.
The technician shortage is another major issue. As vehicles become more complex and technologically advanced, we need highly skilled technicians to maintain and repair them. Finding and retaining these qualified professionals is becoming increasingly challenging across the industry.
How is TCI addressing these challenges, particularly when it comes to technology and skilled labor?
When it comes to technology, we’ve taken a proactive approach. We’ve brought on staff members who specialize in new and emerging technologies. These folks are dedicated to researching and implementing the latest advancements, whether that’s in electric vehicles, telematics, or safety systems.
We’re also not just waiting for changes to happen – we’re actively testing new technologies in our fleet. This allows us to gain real-world experience and provide informed guidance to our customers. It’s all about staying ahead of the curve so we can help our clients navigate these changes smoothly.
As for the technician shortage, we’re addressing this on multiple fronts. First, we’ve ramped up our training programs. We’re investing heavily in ongoing education for our current technicians to keep their skills up-to-date with the latest technologies.
But it’s not just about recruitment – retention is key. We’ve put a lot of effort into creating a work environment that’s attractive to skilled technicians. This includes competitive pay and benefits, of course, but also opportunities for advancement and a culture that values their expertise.
Partnerships and Collaboration
How crucial are partnerships to TCI’s growth strategy?
I can’t overstate how important partnerships are to us. In this business, you’re only as strong as your network, and we’ve put a lot of effort into building and maintaining strong partnerships.
There’s a saying in our industry that the ultimate customer is our customer’s customer. What that means is that for us to succeed, we need to help our clients serve their customers better. And to do that effectively, we need strong partnerships with our vendors and suppliers.
These partnerships aren’t just about getting good deals – though that’s certainly part of it. They’re about creating a network of expertise and capabilities that we can leverage to benefit our customers. Whether it’s getting the latest equipment, accessing cutting-edge technology, or being able to provide service across a wide geographic area, our partnerships are key to making that happen.
Can you give us some examples of TCI’s key partnerships and how they benefit your customers?
One of our most crucial partnerships is with our main truck supplier. This isn’t just a vendor relationship – it’s a true strategic partnership. They’ve actually reserved production slots for us each quarter, which means we’re able to get products faster than we would otherwise. In an industry where timing can be everything, this is a huge advantage for our customers.
This partnership also puts us in a position to offer competitive pricing and tailored services. Our supplier works closely with us to understand our needs and the needs of our customers, which translates into better products and services down the line.
Another key partnership for us is with NationaLease. This is a network of independent leasing companies that we’re proud to be a part of. Through this network, we can support each other’s customers across the country. It also allows us to share best practices with other top-performing leasing companies. We’re constantly learning from each other and bringing those insights back to benefit our customers.
We’ve also developed partnerships with various technology providers. These partnerships help us stay at the forefront of industry trends, whether it’s telematics, safety systems, or fleet management software.
Lastly, I’d mention our partnerships with technical schools and colleges. While these might not directly impact our customers in the short term, they’re crucial for ensuring we have a pipeline of skilled technicians to service our customers’ vehicles in the years to come.
Future Outlook and Goals
Looking ahead, what are TCI’s primary goals for the future?
When we look to the future, our goals really center around two main things: being the supplier of choice for our customers and being the employer of choice for our people. Everything we do is geared towards these two objectives.
Being the supplier of choice means constantly innovating and improving our services to meet and exceed our customers’ needs. We want to be the company that our customers turn to not just for leasing, but for solutions to their transportation challenges.
As for being the employer of choice, we recognize that our employees are the backbone of our company. We want to continue creating an environment where talented people want to work and build their careers. This means ongoing training, opportunities for advancement, and fostering a culture that people are proud to be part of.
Beyond these overarching goals, we have a clear five-year plan that outlines where we want to grow and how we plan to get there. This includes expanding into new markets, further developing our technology offerings, and continuing to lead the way in sustainability initiatives.
One thing I always emphasize is that it’s not just about growth for growth’s sake. We want to grow in a way that allows us to maintain the high level of service and personal touch that sets us apart. It’s about smart, sustainable growth that benefits our customers, our employees, and our company as a whole.
How is TCI preparing for future changes in the transportation industry?
One of the big ways we’re preparing is by investing in new technologies. We’re not just talking about it – we’re actively testing and implementing things like electric vehicles, advanced telematics systems, and cutting-edge safety technologies. We want to be at the forefront of these changes so we can guide our customers through them.
We’re also putting a lot of emphasis on sustainability. We know this is going to be a major factor in the industry going forward, so we’re working on ways to reduce our environmental impact and help our customers do the same. This isn’t just about meeting regulations – it’s about being a responsible corporate citizen and helping our customers do the same.
Another key aspect of our preparation is our focus on people. We’re constantly training and developing our team to be ready for the changes coming our way. This includes everything from technical skills for our mechanics to stay current with new vehicle technologies, to leadership development for our management team.
Lastly, we’re maintaining a flexible and adaptable approach to our business model. The transportation industry is likely to see some significant shifts in the coming years, whether it’s changes in regulations, new technologies, or evolving customer needs. We’re making sure our organization is agile enough to pivot and adapt as needed.
At the end of the day, our strategy is to work our plan, stick to it, and always do the right thing – in good times and in challenging times. We believe that if we stay true to our values and keep focusing on serving our customers and supporting our employees, we’ll be well-positioned to navigate whatever changes come our way.
Closing Thoughts
What advice would you give to other companies in the leasing industry?
If I had to boil it down, I’d say this: do the right thing every time, and work as a team.
When I say, “do the right thing,” I mean always act like someone’s watching, even when they’re not. In this business, your reputation is everything. It’s about being ethical, being accountable, and always putting your customers’ needs first. Sometimes that might mean sacrificing short-term gains for long-term relationships, but in my experience, that always pays off in the end.
As for working as a team, that’s absolutely critical. We can’t do this alone. Whether it’s within your own company or with your partners and suppliers, success in this industry is all about collaboration. It’s about bringing together diverse skills and perspectives to solve problems and create value for your customers.
Lastly, I’d say never lose sight of why we’re here. At the end of the day, we’re not just leasing trucks – we’re helping businesses succeed. We’re solving problems. We’re making it possible for our customers to serve their customers better. Keep that perspective, and it’ll guide you in making the right decisions.
As the transportation industry continues to evolve, facing challenges from technological disruptions to regulatory changes, companies like TCI are proving that adaptability and a strong set of core values are the keys to long-term success. By investing in their people, embracing innovation, and maintaining a laser focus on customer needs, TCI is not just preparing for the future – they’re helping to create it.
The road ahead for the commercial truck leasing industry is filled with both challenges and opportunities. As we look to the future, it’s clear that under the leadership of professionals like Mike Margarone, TCI Transportation is well-equipped to navigate this changing landscape, driving innovation and setting new standards for excellence in the industry.
In the end, it’s not just about leasing trucks – it’s about partnering with businesses to solve problems, improve efficiency, and ultimately, drive success. As TCI continues to lead the way, the future of commercial truck leasing looks brighter than ever.
About Michael
Michael Margarone is a visionary leader in the transportation industry, renowned for his innovative approach to commercial truck leasing. At TCI Transportation, he leads with a commitment to excellence, integrating cutting-edge technology to enhance fleet efficiency and safety. His deep industry knowledge and clear communication skills make him a respected figure in the field, known for his ability to navigate complex challenges and deliver outstanding results.
