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All-season or all-weather? Know the difference before your next tire change.
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The fleet industry's new-vehicle and parts supply challenges have spotlighted escalating service, maintenance and repair costs due to increased lifecycles. U.K.-based ATS Euromaster offers suggestions on proactively scheduling maintenance and servicing.
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Many factors continue to exert upward pressure on fleet maintenance costs (with longer service lives as the primary driver).
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This video analyzes fleet sales and acquisition trends month over month; flat PM costs as some fleets base oil drain intervals solely on mileage; replacement tire expenses remain flat but increased interest in retreads as a result of cash conservation initiatives; and an uptick in unnecessary idling due to field workers using vehicles for social distancing.
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Although prices for replacement tires increased 3% per unit per month in calendar-year 2019 compared to CY-2018, the per transaction tire costs were up less than 1% for fleets buying at pre-negotiated national account prices.
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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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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.
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Replacement tire prices are driven by raw material costs, which in CY-2019 were less volatile, but higher nonetheless. Tire prices increased slightly higher than the rate of inflation, which was partially offset by improvements in tread wear longevity.
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Overall improved business conditions opened pent up demand for replacement units, especially in the oil sector and construction, which in the prior several years had scaled back new-vehicle acquisitions due to stagnant growth.
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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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