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Market Trendsby Mike AntichDecember 22, 2009

State of the Fleet Market Outside North America

The global economic downturn created havoc in the fleet markets in Europe, Australia, Latin America, Asia, and Africa. Here's a summary of each of these regional markets and a forecast of what to expect fro 2010 based on a recent meeting in Barcelona with lessor representatives from each of these regions.

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Market Trendsby Mike AntichDecember 1, 2009

A ‘Cash for Clunkers Program’ for Work Trucks

Turnover in diesel fleets happens slowly. The average service life for a medium-duty truck is 5-10 years, while a short-haul owner-operator heavy-duty truck typically has the lifespan of 18-20 years. Despite the 2007 and 2010 diesel emission standards, tens of thousands of older, dirtier trucks will remain on the road into the next decade. Is there a way to accelerate the turnover of pre-2007 diesel trucks? One way is a Cash for Clunkers program specifically for work trucks.

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Market Trendsby Mike AntichNovember 17, 2009

Deferring Vehicle Replacements is Counter-Productive to the Intended Goal

During economic uncertainty, senior management demands expense reductions and limits capital expenditures. Since fleet is usually among the top 10 corporate capital expenditures, there is pressure to defer vehicle replacements. However, this cost-containment strategy misses the point that all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. Cost reductions in acquisitions are often offset by rising costs elsewhere.

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Market Trendsby Mike AntichOctober 30, 2009

Shareholder Pressure for Carbon Disclosure Puts Corporate Fleets in the Cross Hairs

A record number of resolutions were filed during the 2009 proxy season by investor groups to get companies to voluntarily disclose data about their "carbon footprints," which includes the greenhouse gas (GHG) emissions caused directly and indirectly by their operations. These investors argue companies that disclose and mitigate GHG emissions will be rewarded with higher valuations and a lower cost of capital. At many companies, fleet represents a sizeable percent of their carbon footprint.

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Market Trendsby Mike AntichOctober 23, 2009

Forecast of Order-to-Delivery Times for 2010-MY Fleet Orders

With the 2009 model-year behind us and 2010 model-year ordering in progress, how will 2010-MY order-to-delivery times (OTD) fare? Some foresee the 2010 model-year being a challenging one for OTD (not as challenging as 2009-MY, however), but one that could result in longer than normal delivery times.

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Market Trendsby Mike AntichOctober 20, 2009

Forecast of Fleet Operating Costs for 2010 Calendar-Year

Fuel costs, the largest fleet operating expense, declined dramatically in the 2009 calendar-year due to a sharp decline in worldwide fuel consumption. Also, many fleets downsized, due to widespread corporate layoffs, which lowered overall fuel spend. However, maintenance and repair costs increased in 2009, primarily due to vehicles kept in service for longer periods as a result of corporations slashing capital expenditures. Open the blog for a forecast of 2010 operating cost trends.

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Market Trendsby Mike AntichOctober 13, 2009

Ban Texting While Driving, But Beware of Inadvertent Consequences

The popularity of texting has skyrocketed over the past four years. All agree that texting and driving are incompatible. However, a texting ban could have unintended consequences of interfering with productivity devices business drivers and truckers rely on. There are numerous ramifications to overzealous prohibitions on the use of on-board electronic communications that potentially may be counter-productive to driver safety. Let's target unsafe driving behavior, not on-board productivity tools.

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Market Trendsby Mike AntichSeptember 29, 2009

2009 Order-to-Delivery Times Battered on Multiple Fronts

The multitude of factors buffeting order-to-delivery (OTD) times for commercial fleets during the 2009 model-year were breathtaking and historic. To say the 2009 model-year was a difficult year for new-vehicle deliveries would be an extreme understatement.

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Market Trendsby Mike AntichSeptember 22, 2009

The Hidden Cost of Personal Use

Many companies are wondering whether they are charging enough for personal use. At some companies, this discussion is long overdue. When re-evaluating personal use charges, a common mistake is to focus solely on the cost of fuel. However, doing so ignores the other “hidden” costs of personal use, which have also risen.

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Market Trendsby Mike AntichSeptember 8, 2009

The ‘Gray Areas’ of Fleet Management

Let's face it, some companies don't take fleet as seriously as they say they do. For them, fleet is not core to their business. The refrain is: We're in the "widget" business, not the car business. Internal corporate politics introduces many gray areas to fleet management such as making fleet decisions based on favoritism, giving lip service to safety, greenwashing, and pressuring suppliers for favors.

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Market Trendsby Mike AntichAugust 31, 2009

2009 AFLA Conference Delivers ROI to Commercial Fleet Professionals

This is an exciting time for the Automotive Fleet & Leasing Association (AFLA) as it gains widespread recognition as a strong voice for the commercial fleet management industry. For the past five years, AFLA has experienced year-over-year growth in membership and conference attendance. As its president, I'm especially proud of AFLA's growing stature and believe its best years are still ahead of it. The upcoming 2009 conference epitomizes the ROI that AFLA offers commercial fleet managers.

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In Memoriam: Coach's Insightsby Ed BobitAugust 24, 2009

Puzzling Thoughts On Compensation vs. Education

While I'm a distance from being called an academic, I've always felt that education is the road to professionalism; and that professionalism leads to increased compensation. There are many variables, but my recent re-review of the salary surveys that we conduct raises some interesting questions.

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