The ongoing semiconductor shortages, with the resultant delays on new vehicles, is impacting fleet replacement cycles. As a result, many fleets are now facing lifecycle extensions as shortage of replacement vehicles becomes a pressing issue, which in turn places a premium on Service, Maintenance and Repair (SMR) schedules.
Shortcycling Re-emerges to Leverage the Strong Used-Vehicle Market
Today’s used-vehicle market is the best it’s been in the history of fleet management and my anecdotal forecast is for it to remain strong through the balance of 2021 and into calendar-year 2022. As a result of these favorable market conditions, some fleets have begun shortcycling some of fleet vehicles.