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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.
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The commercial tire market in 2019 has seen a greater impact of tariffs and duties, impact from the last-mile delivery segment, but overall stability in pricing. Changes are coming.
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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.
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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.
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Legacy Classic Trucks – recognized as one of the top vehicle restoration companies in the nation – has selected and is currently using Stertil-Koni heavy-duty lifting systems to give new life to historic vehicles.
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Preventive maintenance programs are yesterday’s news. Tomorrow’s fleet manager is working on predicting issues before they even occur.
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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.
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On average, PM costs have increased due to higher labor rates, expansion of models requiring synthetic motor oil, and more expensive cartridge oil filters. One offset is that longer lasting synthetics have extended oil-drain intervals.
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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.
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For larger fleets who currently use fleet management companies or small business fleets who suffer through hours of manual service record-keeping, things are about to change.
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