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The COVID-19 pandemic divided the fleet market into essential and non-essential businesses, causing hundreds of thousands of company vehicles to sit idle from mid-March to mid-May. The economic shutdown caused miles-driven to plummet.
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Operating cost trends analyzed in this video includes current fuel pricing trends and forecast for 2021 calendar year; maintenance (includes preventive and unscheduled maintenance) trends; part shortages caused by component backorders; replacement tire pricing trends.
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Automotive Fleet has developed a reference guide of the most up-to-date industry data on the market to support fleet professionals.
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The humble city curb is now coveted real estate, and it’s making mobility increasingly difficult. Cities are turning to curb management concepts that allow fleets to dynamically guarantee parking for a fee.
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The balance of calendar-year 2020 will be a time for major decisions. This includes decisions on staffing levels. Decisions on remote work versus office work. Decisions on whether a company should consider downsizing the square footage of its corporate offices due to reduced staffing needs.
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Topics mentioned in today's video includes the reopening of all OEM assembly plants; fleet sales in May 2020; a decline in fleet operating costs; the declining supply of used vehicles in the wholesale market; and industry conferences moving to a virtual format
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Fleet operating costs increased in CY-2019 due to higher PM costs, ongoing pressure to increase maintenance labor rates to address the widespread tech shortage, and higher prices for commodities to manufacture replacement tires.
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The ongoing trend of increased costs per service will continue as more and more vehicles requiring conventional oil are taken out of service and replaced with models that require synthetics.
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Most of the subject matter experts that we spoke to expect an increase in tire prices, although predicting future tire costs is difficult due to variables that influence tire pricing.
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Higher labor costs will continue to increase the maintenance spend for routine repairs in 2020, especially at service facilities located in high-cost-of-living metro areas.
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