Many manufacturers are preparing to debut new model-year vehicles for 2023...but will fleet managers be able to acquire them?
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Education is the Key
Education is key to staying ahead of changes in fleet management. When we look at profit versus loss, we look at taking deep dives into maintenance and question why our maintenance costs are much higher this year than they were the year before. It is important that fleet managers continue to work with their fleet management companies to understand these trends and take a proactive approach to have consistent conversations surrounding their spend and their expectations.
In a time of Zoom meetings and phone calls, it is important that we let our customers know that we are the experts in our industry and we are here to help them manage this as a partner and not make them feel like they are going into the unknown. Taking a proactive approach goes a long way to show the appreciation and dedication that we have for them.
Tony Hernandez, Truck Maintenance Team Lead, Emkay
Itasca, Ill.
Fleet Time Capsules
Great job on Episode 100 of the Weekly State of the Fleet Industry video series. When you began these State of the Fleet Industry videos, did you ever think that you would be doing 100? Maybe 200? They will be interesting time capsules to look back on when I’m in my rocking chair on the front porch!
Rick Nicoletti, Vice President & General Manager, Napleton Fleet Group
Oakbrook Terrace, Ill.
Consolidation - Collaboration
Good work on Episode 100 of the State of the Fleet Industry video entitled, “Industry Consolidation Garners Increased Attention by Fleet Managers.” Yes, there will be consolidation, but there will also be collaboration!
Good work Mike Antich.
Stewart Lightbody, MAFP, Fleet Innovation and EV Manager Matrix iQ
Bedford, UK
Stewart Lightbody is also the deputy chairman of the Association of Fleet Professionals (AFP) in the UK. Lightbody was named Fleet Manager of the Year in 2019.
I was speaking with some upfitters recently and they told me about how some commercial customers are really disappointed with their new BEV trucks. The truck owners bought them for the tax credits/incentives but soon realized that they do not meet their needs. Some BEV trucks are rated for 300-plus miles in range, but after they hook up their trailers, the range drops to about 100 miles. Commercial customers have discovered some BEVs don’t perform well, so they park the vehicles and can’t use them.
Keep the State of the Fleet Industry videos coming! They are awesome!
Author wished to remain anonymous
Not a Surprise
I watched the June 27, 2022 State of the Fleet Industry weekly video and see that fleet demand is expected to exceed allocation again next year – not a surprise. I am surprised how often I hear that companies have received neither advice nor guidance on how to handle this from their current fleet partner. The simple days of order/deliver/repeat are LONG GONE. If you’re not planning 2-3 years out from now you run the risk of falling short.
Eric Norkus, Account Executive, Foss National Leasing
Toronto, Ontario, Canada
Misguided OEM Tactics
With availability dropping and volume incentives decreasing for fleets, organizations may start looking and making more moves to allowance programs and put that on the employees to find vehicles or other options to meet with customers. At the end of the day, the OEMs benefit the greatest from this with more retail sales and leases; it’s almost like they want to move in that direction. Service fleets will remain but they will have to demand higher prices to make it all work for them. We live in crazy times!
If you look into the chip shortage issue, why build vehicles with such a high demand in technology? Build vehicles for the intent to get from point A to B. Yes, it is nice to have a ton of bells and whistles, but take out the big screens which are major distractions and put back the knobs.
Author wished to remain anonymous
A Must-watch Video
The analysis in the State of the Fleet video entitled, “The State of the Upfit Market for Commercial Fleets” depicted an accurate representation of the challenges upfitters face in today’s environment. This is a must-watch for anyone involved in the fleet upfit world!
The key takeaways:
Advance planning is crucial.
Place orders as soon as possible.
Anticipate longer lead times due to supply chain constraints.
When possible, standardize upfits.
Sean Meredith, Sr. Business Development Specialist, National Accounts, Driverge Vehicle Innovations
Thank you Mike Antich for a very insightful update into the upfitting world in The State of the Fleet Industry video entitled, “The State of the Upfit Market for Commercial Fleets.” There are a lot of variables we can’t control, but planning can make a difference!
Melissa Cook, Business Development Manager, Fleet Upfit Solutions, Ranger Design
Denver, Colo.
Shrinking Fleet Allocation?
I watched the State of the Fleet Industry video entitled, “Fleet Allocations Sell Out Quickly for 2023 Models Offering Free Flow Ordering” and thought it would be interesting to see how 2019 total fleet allocation compared to what is being offered in 2023? Is it really pent-up demand or are OEMs just allocating fewer vehicles to fleet?
Rick Ravelo, Fleet Administrator/Division Finance Analyst, Fidelity National Financial
Chicago, Ill.
Fleet vs. Retail Orders
In reply to the State of the Fleet Industry video entitled, “Fleet Allocations Sell Out Quickly for 2023 Models Offering Free Flow Ordering,” I have dozens of 2022 models that still are sitting in my FLEET Order Banks since last September 2021. Yet, if we put a Retail Order in, it gets built right away. It makes me wonder why all of the OEMs are catering to the ”Bob & Mary Smith” orders who only buy once every three to five years, but not fleets who buy year over year!
Michael Benz, Commercial Sales Manager, Behlmann Chrysler Jeep/Dodge/RAM
Troy, Mo.
You’ve Done It Again
I am not sure how you do it, but you have done it again! The January 2022 AF article “Global Fleet Policy: Perception vs. Reality” was great! Thank you for all that you have done and continue to do for our industry.
Corey Woinarowicz, Director of Business Development, NoCell Technologies, LLC
The greater challenge for fleets is the fundamental shift of the manufacturers to protect the higher-margin retail supply chain. What we are seeing is the mega-fleet advantage squeezing out the mid-markets. OEM allocation policies are significantly altering competition.
Mike Antich has covered fleet management and remarketing for more than 20 years and was inducted in the Fleet Hall of Fame in 2010 and inducted in the Global Fleet of Hal in 2022. He also won the Industry Icon Award presented jointly by the IARA and NAAA industry associations.
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