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Supply Chain Update & 2025 Outlook

a white truck with the door open

After three-plus years of significant disruptions and limited availability, the vehicle supply chain finally stabilized in 2024. Throughout the year, the overall supply of new vehicles improved dramatically and factory ordering is once again available for virtually all models. As the supply chain continues to trend in a positive direction, most fleet operators now find themselves leveraging improved availability to get vehicle lifecycles back on track and preparing for what is poised to be an above average order cycle in 2025.

With that in mind, Holman’s Ted Davis and Patrick Doyle recently spoke with Automotive Fleet to examine the latest supply chain conditions and offer their forecast for 2025.

In the article, Patrick noted that nearly all OEMs have returned to open ordering across most vehicle segments. Additionally, he shared that a growing number of manufacturers are reintroducing vehicle incentives and customer-specific CAP agreements. Patrick also discussed how greater vehicle availability is influencing operating decisions throughout the entire vehicle lifecycle.

“Fleet operators were often forced to repair vehicles rather than replace them, even as maintenance costs continued to climb. Today, with maintenance expenses still on the rise, fleet operators now have the option to replace vehicles rather than repair them when appropriate.”

Patrick Doyle

Director, Supply Chain Solutions

Later in the article, Ted Davis highlighted the upfit sector specifically and said this segment of the industry has also improved significantly over the last 12 to 24 months. He shared that while some specialized parts are still experiencing extended lead times, most upfit components are now readily available.

“Generally speaking, fast-moving parts like racks, shelving, and storage are in good supply today with most available in less than six weeks from order to delivery. The availability of standard bodies is steadily improving as well with most lead times back to pre-pandemic norms of six-to-ten weeks.”

Ted Davis

SVP & COO, Fleet Management Upfitting

Overall, the entire vehicle supply chain appears to be well positioned for a strong 2025 that is likely to see a noticeable uptick in order volume. To read the entire article, visit Automotive-Fleet.com and to have the latest supply chain updates delivered right to your inbox, be sure to subscribe to Holman’s Morning Brake newsletter.