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Four veteran fleet leaders explain how they are navigating rising costs, improving driver safety, and preparing the industry for what’s ahead.
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Fleet operators are facing rising costs in acquisition, insurance, maintenance, and repairs — even as fuel prices dip — forcing a rethink of budgeting and vehicle strategies.
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With fuel as much as 60% of operating costs, alleviating fuel expense is imperative. Check out these tactics — with statistics to illustrate the savings.
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Preventive maintenance (PM) expenses in CY-2020 were lower compared to 2019, primarily due to the pandemic-induced economic shutdown resulting in fewer miles driven as many fleet vehicles were idled.
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The trend of increased PM 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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The trend has been to extend PM intervals due to the use of longer-lasting synthetic motor oils, but during the COVID lockdown many fleet vehicles were idled, decreasing miles driven, causing PM compliance to diminish.
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For the past decade, more OEMs are recommending the use of more expensive synthetic motor oils, which is increasing the cost of each PM service. But the higher quality motor oil also allows the intervals between these services to lengthen, which is offsetting some of the additional per-transaction costs.
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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.
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Extending the oil drain interval to higher miles puts it out-of-synch with courtesy checks for tire wear and brake pad or rotor inspections. By extending oil drain intervals, there will be less frequent inspection of these wear items than what has occurred in the past.
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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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