Forecast of Operating Costs for CY-2015
If one word could describe the forecast for CY-2015 operating costs, it would be "flat." The upbeat forecast is for gasoline and diesel prices to slightly decrease, while maintenance and tire costs are predicted to remain stable.
Prices for Replacement Tires Stabilize in CY-2014
Replacement tires are the third-largest fleet expense category. In recent years, there have been year-over-year price increases for replacement tires. A key reason for current, stable tire pricing is less volatility in commodity costs.
Commercial Fleet Maintenance Costs Remain Flat in CY-2014
Maintenance costs have decreased in the past 12 months with the primary reason being increased vehicle quality. But, there are concerns about vehicle complexity, part prices, labor rates, and soft costs such as driver downtime.
Operating Costs Flat for Second Consecutive Year
Gasoline and diesel prices, on average, in 2014 are virtually the same as in 2013, with some variances depending on region. Similarly, PM costs are flat and stable commodity prices have contributed to less volatility in tire prices.