Ireland’s freight and logistics sector is showing growing signs of investment caution, with more than one in five fleet operators planning no capital expenditure over the coming year, according to new research from FTA Ireland.

The findings, published in the FTAI 2026 Manager’s Guide to Distribution Costs Ireland, paint a worrying picture of an industry grappling with international uncertainty, rising operating costs and difficult decisions about future fleet investment.

Perhaps the most striking finding is that 21.4 per cent of operators have no capital expenditure planned for the coming year, compared with just 7.7 per cent in 2025.

That represents a near threefold increase in the proportion of operators putting investment plans on hold.

The research also reveals that one-third of participating fleet operators have delayed asset purchases or altered their capital expenditure plans in direct response to events in the Middle East.

For an industry heavily dependent on diesel, equipment investment and predictable operating costs, the findings underline just how quickly international developments can influence decisions made by Irish transport businesses.

Fleet Replacement Plans Under Pressure

The implications for Ireland’s haulage sector could be significant.

Delaying investment in new trucks, trailers and other equipment may provide short-term financial breathing space, but prolonged uncertainty could have longer-term consequences for fleet efficiency, maintenance costs and competitiveness.

Older vehicles generally require more maintenance and may be less fuel-efficient than newer models, potentially adding to the financial pressures already facing operators.

For smaller and medium-sized haulage businesses in particular, committing substantial capital to fleet replacement is becoming an increasingly difficult decision.

With uncertainty surrounding fuel prices, financing costs and future vehicle technologies, operators face the challenge of deciding whether to invest now or wait for greater clarity.

Alternative Fuels Gaining Ground

Despite the cautious investment outlook, the FTA Ireland research contains some encouraging findings.

Alternatively fuelled vehicles are now represented in 60 per cent of participating fleets, up from 52.9 per cent previously.

Just as significantly, average operator satisfaction with these vehicles has increased from 4.8 to 7.5 out of ten.

This suggests that operators gaining practical experience with alternative fuel technologies are becoming more positive about their performance.

However, there remains a considerable gap between testing alternative technologies and committing to wholesale fleet conversion.

The research found that 57.1 per cent of operators have no confirmed timetable for further investment.

This raises important questions about the barriers preventing transport businesses from moving beyond initial trials and limited deployment.

Vehicle purchase costs, infrastructure availability, operational suitability and uncertainty over future energy prices are all considerations that can influence investment decisions.

Warning Signs for Fleet Renewal

The findings come at a particularly challenging time for Irish hauliers, with the sector continuing to face pressure from fuel costs, regulatory requirements and the transition towards lower-emission transport.

While Government policy increasingly encourages investment in cleaner vehicles, the commercial realities facing operators may be pulling in the opposite direction.

There is also a wider concern that postponing fleet investment today could create a significant replacement backlog in the years ahead.

If operators continue to defer purchases, the consequences could extend beyond individual haulage companies to commercial vehicle dealerships, trailer manufacturers, workshops and the wider transport supply chain.

Investment Confidence Key to Greener Transport

The figures highlight an important distinction between willingness to adopt new technology and the financial confidence required to make substantial investment commitments.

The increase in alternative-fuel vehicle satisfaction is encouraging, but it does not automatically translate into orders for new vehicles.

For Ireland’s freight sector to make meaningful progress towards decarbonisation, operators need confidence that investments will be commercially viable over the lifetime of their vehicles.

That means greater certainty around fuel taxation, infrastructure development, vehicle support schemes and the longer-term operating costs of alternative technologies.

The latest FTA Ireland findings suggest that, without that confidence, many operators may continue to delay major investment decisions.

The central question is whether Ireland’s haulage sector is experiencing a temporary pause in fleet investment or the beginning of a more prolonged slowdown.

Either way, the sharp increase in operators planning no capital expenditure should serve as a warning to policymakers that investment confidence cannot be taken for granted.

The full findings are available in the FTAI 2026 Manager’s Guide to Distribution Costs Ireland, which can be downloaded free of charge.

Download the FTA Ireland 2026 Manager’s Guide to Distribution Costs