How Changing Demographics Affect the Fleet Market
The current challenge made by Sal Giacchi, NAFA's latest president, in his avowed determination to revitalize the chapters in his inaugural address. Most believe that the chapter level represents the real foundation of the now international association.
Don’t jump on a man unless he’s down.-Finley Peter Dunne (Mr. Dooley)
I like men to behave like men – strong and childish.-Francoise Sagan
Be pleasant until ten o’clock in tin: morning and the rest of the day will take care of itself.-Elbert Hubbard
Walk groundly, talk profoundly, drink roundly, sleep soundly.-William Hazlitt
When I started in this fleet business many years ago, the fleet market was in its infancy. Leasing was just then beginning to catch on and the manufacturers were planning full-fledged fleet sales departments.
It was also when the National Association of Fleet Administrators (NAFA) was getting established. NAFA had some very active regional chapters. (New York, Pittsburgh, and Chicago come to mind.) A few years ago the organization was kind enough to bestow an Honorary Life Member status to me (of which I'm humbly proud), and I participated heavily in the Chicago Chapter (our original headquarters) and happily recall a unique group.
Without belaboring "old times," you should know that nearly every fleet manager in the area was a member, virtually came to every meeting, and fully enjoyed the pre-dinner cocktail hours.
This entire preface leads me to the current challenge made by Sal Giacchi, NAFA's latest president, in his avowed determination to revitalize the chapters in his inaugural address. Most believe that the chapter level represents the real foundation of the now international association.
In perspective, from a handful of chapters to about 33 today throughout North America, membership has also grown from a few hundred lo nearly 4,000 (which includes a heavy affiliate group). While every chapter chair is reluctant to call fleet manager participation a "crisis." even Giacchi and his board recognize that it is a major problem.
NAFA is searching for answers for a solution. They're asking: What makes a successful meeting? What can headquarters do to assist? Are monthly meetings too often? Regrettably, these are the same questions they've been asking for a long time.
For what it's worth, perhaps it would help more to analyze how the technological influences and member demographics have changed to find the best solution.
Consider the basics: Of its more than 2,000 fleet manager members, about half are "commercial" and half in the "utility/governmental" areas. Divergent interests make it difficult to attract to convergence.
The utility/government group is profiled with more trucks, fewer miles, more heavy equipment, service and maintenance, and retaining the vehicles longer. The commercial fleets lean on their lessors and other outsource suppliers and their fleets are getting larger (mainly through M&As). Comparing the last three years for the Top 200 commercial fleets, their vehicle size average has grown markedly from 3,384 ('98) to 4,547 ('00) or a whopping 34 percent. (Some utilities encounter mergers, but government fleets rarely do.)
From Automotive Fleet's circulation universe (mainly 25+ in size) we know that there is more than 15 percent turnover every year. That equates to a totally new market of fleet managers over a short period of time, and underscores the desperate need for basic and continued education.
Since NAFA has created its Fleet Information Resource Center with a complete library of answers to fleet questions via the computer (and our own highly visited Web site at www.fleet-central.com, data is available at one's fingertips (if you know what to ask).
So, is there a need for education and training? YES, and more than ever. Have the needs changed with Web site libraries and lessor electronics as resources? YES, profoundly. What's the answer; what's missing? It's the individual NETWORKING you can only get "one on one." Maybe not a bad sell line for NAFA.
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