Operating Costs - Tagged Posts

Upward Pricing Pressures on Most 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.

Operating Costs Inch Up for Second Consecutive Year

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.

Understanding Economic Service Life for Better Fleet Cost Forecasting

A lifecycle cost analysis that incorporates a work vehicle’s productivity can lead to greater fleet utilization and decreased fleet spend.

Warranty Recovery and Good Will Assistance Remains Stringent

Warranty recovery is more stringent requiring even greater documentation to support warranty claims. OEM loyalty and the availability of documented maintenance histories heavily influences post-warranty goodwill assistance.

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.

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.

Replacement Tire Prices Moderate to Rate of Inflation

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.

How to Manage Tires for Optimal Minutes and Miles

Truck tires lead multiple lives. Here’s how to make sure you get the most out of them, no matter which stage of life they’re in.

Which EVs Have the Lowest Total Cost of Ownership for Fleets?

Included in this groundbreaking total cost of ownership study for fleets are battery-electric models including BMW i3, Chevrolet Bolt, Nissan Leaf, and Tesla 3, as well as plug-in hybrid electric models such as Chevrolet Volt and Hyundai Ioniq Plug-In Hybrid.

4 Cost-Saving Initiatives Fleets Can Leverage

Fleet managers are constantly tasked with coming up with new ways to reduce costs. Two fleet industry professionals at a NAFA meeting presented multiple strategies to help facilitate that goal.