Inflationary Pressures, Supply Constraints Among Top Fleet Challenges
Holman Marketing
September 13th, 2023
On a daily basis, fleet operators face a litany of challenges from big to small. Whether it’s developing a holistic strategy that maximizes the potential of your fleet or it is navigating a variety of administrative tasks to simply keep your drivers and vehicles on the road servicing your customers, most fleet operators certainly have their hands full.
Holman’s Ted Davis recently spoke with Automotive Fleet to discuss some of the top challenges impacting fleet operators today and provide his perspective on how these trends are likely to evolve over time. In the article, Ted notes that while the vehicle supply chain is showing signs of improvement, disruptions continue to linger. As a result, fleet operators must navigate short-term challenges while also adjusting their long-term strategic planning.
He also highlights that economic headwinds are impacting virtually every aspect of fleet operations. Whether it is rising interest rates, supply constraints, or inconsistent fuel prices, these trends are driving operating costs higher and many organizations are looking for ways to optimize their fleet strategy and control costs to adapt to the economic uncertainty.
“Compared to 2020, new-vehicle acquisitions costs are approximately 19% higher while maintenance and fuel costs rose between 25-40% in a similar timeframe. Although we’ve seen marginal improvement in tactical areas such as availability, the uncertainty of the global economy continues to overshadow the broader financial environment and will likely continue to do so for the next 12-24 months.”
Finally, Ted touches on fleet electrification, highlighting that while EVs often garner most of the attention, other alternative fuel options such as hybrids, CNG, and even hydrogen fuel cell vehicles may offer the best solution for certain fleet applications.
To read the entire article, visit Automotive-Fleet.com. For the latest information on the emerging trends that continue to shape the fleet management industry, be sure to subscribe to our Morning Brake newsletter.