Preparing Fleets for Economic Disruptions
Over the last several years, fleet operators have faced unprecedented economic disruptions. From rising interest rates and persistent inflation to supply chain shortages and unforeseen tariffs, these macroeconomic factors have had a profound impact on nearly every aspect of fleet operations. As these trends continue, most businesses are finding themselves in a cycle of adaptation, having to refine their fleet strategy to mitigate the impact of these economic challenges.
In a recent article from Utility Fleet Professional, Holman’s Tom Aydelotte and Ed Powell discussed many of these economic disruptions and offered advice for adjusting your fleet strategy during this period of uncertainty. In the article, Tom and Ed highlighted several key economic indicators that fleet operators should monitor to stay ahead of these trends. Of note, Tom specifically pointed to the Federal Reserve and interest rate activity.
“Depreciation is one of the highest costs for any fleet, so we closely monitor interest rates, because as it fluctuates up or down, it’s going to have a significant impact on our customers.”
Additionally, Ed spoke to the lingering volatility around tariffs and how they are poised to impact the entire automotive industry, including the fleet sector.
“Regardless of your perspective on tariffs, the reality is they typically lead to higher prices. What most fleet operators are really worried about is how much prices may rise, and when, so they can plan and adjust accordingly.”
Later in the article, Tom provided a number of recommendations to help ensure your fleet is well positioned to navigate potential challenges on the horizon. He shared that fleet operators should prioritize consistently replacing vehicles and properly maintaining units to optimize reliability and minimize downtime. Tom also discussed the value of telematics when it comes to rightsizing your fleet.
“When a customer has invested in telematics, it allows them to identify vehicles that are being underutilized and sell them or shift them into other roles within their fleet. We’ve seen this strategy pay dividends.”
To read the entire article, visit UtilityFleetProfessional.com. For the latest information on emerging trends and how to adjust accordingly, subscribe to Holman’s Morning Brake newsletter to have valuable insight delivered straight to your inbox.
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