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Optimize Your Fleet Strategy to Navigate Economic Headwinds

Holman Marketing
November 6th, 2023

Turbulent economic conditions and inflationary pressures continue to impact virtually every aspect of fleet operations. Whether it is rising interest rates, inconsistent supply chain performance, or fuel price fluctuations, these trends significantly influence operating costs, and understanding the implications of these variables is crucial.

Fleet stakeholders throughout North America are trying to forecast the impact rising costs will have on their fleet expenses as the calendar flips to 2024. With that in mind, Holman’s Ed Powell recently highlighted some of the top challenges across each stage of the vehicle’s lifecycle – buy, drive, service, and sell.

The article from Supply Professional examines how macro-economic trends are affecting fleet operations and offers a summary of the in-depth advice found in Holman’s Economic Trends report. In the article, Ed highlights the impact inflation and an unreliable supply chain have had on vehicle prices and lease payments.

“Driven by vehicle price increases and surging interest rates, monthly lease payments have increased by nearly 40 percent since 2020. For perspective, a fleet with an annual acquisition budget of $1 million could finance about 135 vehicles in 2020. Today, that budget could accommodate roughly 95 vehicles.”

Ed Powell
Director, Consulting Services

Ed also touches on the spike in maintenance costs – up as much as 30 percent – and highlights the importance of adhering to recommended preventative maintenance (PM) schedules as vehicles remain in services longer and costs continue to rise.

“Minimizing PM variability improves reliability, maximizes productivity, and controls operating costs. Minor PMs reduce more significant component failures. When a fleet has high PM variability, maintenance costs and downtime rise as the vehicle ages.”

Ed Powell
Director, Consulting Services

To read the entire article, be sure to visit You can also download Holman’s in-depth Economic Trends report to learn more about these economic headwinds and how to adapt to optimize your fleet strategy.