February 21, 2023
Five Reasons Why Fleet Maintenance Costs Have Experienced Double Digit Price Increases
The 133rd State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich.
🎙Today's topics include:
- The increase in fleet maintenance costs have been substantial, in some cases experiencing percentage increases that are double digit.
- Increased vehicle complexity has exerted increased maintenance costs through the increased volume of vehicle diagnostic fees, increased labor hours to identify intermittent issues, and recalibration expenses for ADAS-equipped vehicles.
- Increase in unscheduled repairs are more fleet vehicles are having their service lives extended due to difficulty in sourcing replacement vehicles.
- Part shortages are lengthening repair times for vehicles increasing vehicle and driver downtime.
- Inflationary pressures are increasing labor rates, parts prices, and pass-along costs from increased raw material prices used to manufacture replacement parts.
- Increased labor rates primarily driven by the shortage of skilled automotive technicians.
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⌚ Timestamps ⌚
1:00 Increased Vehicle Complexity
3:29 Increase in Unscheduled Maintenance
4:56 Delays Due to Back-Ordered Replacement Parts
7:03 Inflationary Price Pressures
7:54 Increased Labor Rates