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Forecast: Fleet Costs Will Continue to Escalate

Forecast: Fleet Costs Will Continue to Escalate

Fleet fixed and operating costs are increasing across the board, in particular fuel prices, higher acquisition costs, lower incentives, and unscheduled maintenance expenses. The forecast is for fleet expenses to increase for the next three years.

March 29, 2022

Inflationary Price Pressures Increase Maintenance Costs

Inflationary Price Pressures Increase Maintenance Costs

Among the factors contributing to increased maintenance expenses has been increased miles driven, supply chain constraint, parts shortages, longer downtime, and a tech shortage exerting inflationary pressures on labor rates.

March 7, 2022

Preventative Maintenance Costs Increase 3-5% in 2021

Preventative Maintenance Costs Increase 3-5% in 2021

A variety of factors converged to exert upward pressure on preventive maintenance costs, such as longer vehicle service lives due to limited product availability, the ongoing transition to synthetic oils, and higher labor rates to attract scarce technicians.

November 1, 2021

Unscheduled Maintenance Costs Increase 3% in CY-2021

Unscheduled Maintenance Costs Increase 3% in CY-2021

Part and labor prices have increased 4-8%, while part and labor availability have decreased. Due to difficulties sourcing replacement vehicles, fleets are keeping units in service longer. This caused repair spend to increase in 2021.

November 1, 2021

Higher Commodity Prices Exert Upward Cost Pressure on Tires

Higher Commodity Prices Exert Upward Cost Pressure on Tires

Many tire OEMs have increased prices in CY-2021, ranging from 3-10% depending on type of tire and size. Higher commodity prices and increased ocean freight rates are being passed on to end users as OE profit margins compress.

October 26, 2021

Passenger Vehicle Maintenance Spend Increased 4% in CY-2019

Passenger Vehicle Maintenance Spend Increased 4% in CY-2019

Average repair cost per unit increased in 2019, primarily due to higher labor rates. Also, PM costs were up as more units require more expensive synthetic oil. Tire price per unit, on average, increased 3% in the past 12 months.

March 17, 2020

Upward Pricing Pressuring Fixed and Operating Costs

Upward Pricing Pressuring Fixed and Operating Costs

Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.

December 13, 2019

Labor Shortage Increases But Economic Uncertainty Emerges

Labor Shortage Increases But Economic Uncertainty Emerges

The robust economy is creating record numbers of new jobs and a subsequent labor shortage that is being exacerbated by the large wave of Baby Boomer retirements, but some see uncertainty of future market conditions.

December 11, 2019

Higher Labor Rates Pushing Up Total Fleet Maintenance Costs

Higher Labor Rates Pushing Up Total Fleet Maintenance Costs

More complex vehicle technology, higher labor rates due to the ongoing skilled labor shortage, higher tire prices, and increased use of synthetic motor oils are putting upward pressure on overall fleet maintenance costs.

October 18, 2019

Fleet Oil Drain and PM Costs Increase Again in 2019

Fleet Oil Drain and PM Costs Increase Again in 2019

More OEMs are adopting more stringent motor oil requirements for new models increasing total PM costs, year-over-year, as more vehicles are required to use synthetic oils, which cost more than mineral-based oils.

October 18, 2019

Maintenance Spend Increased 3-5% in 2018

Maintenance Spend Increased 3-5% in 2018

Average repair spend per unit increased 3-5% in calendar-year 2018, primarily due to higher labor rates and part prices. Also, PM costs were up due to the shift to more expensive synthetic oil and higher replacement tire prices.

February 26, 2019

Synthetic Oils, Higher Labor Rates Increase Preventive Maintenance Costs
Replacement Tire Costs Increased 8% in 2018

Replacement Tire Costs Increased 8% in 2018

Upward cost pressures on replacement tires have emerged in 2018, due to higher cost for the commodities used to manufacture tires and the trend to larger diameter 17- to 18-inch wheels, which are more expensive to replace.

February 26, 2019

Higher Motor Oil Prices Nudge Preventive Maintenance Costs Up

Higher Motor Oil Prices Nudge Preventive Maintenance Costs Up

Citing the higher cost of crude oil, many major manufacturers of finished lubricant products increased prices from 5% to 8% in CY-2018. Plus, each model-year, more OEMs require the use of more expensive synthetic motor oils.

November 30, 2018

Maintenance Costs Increase as Labor Rates Rise

Maintenance Costs Increase as Labor Rates Rise

Despite high build quality, vehicle maintenance costs are trending up due to increased advanced technology content, skilled labor shortages, higher tire prices, and more engines requiring synthetic oils and high-capacity oil pans.

November 1, 2018

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