Our client is a leading North American Railcar Services Company. The client’s Lease Team wanted to understand the optimal lease rates to charge to clients and a way to account for market and macroeconomic factors impacting lease rates.

The main objective was to build an analytical model and tool to forecast lease rates for different types of railcars using historical and external data.

• Insufficient data for certain car types
• Lack of clarity on how to determine correct coefficient directionality for modeling