February 21, 2023
Double-Digit Maintenance Price Increases: Five Reasons Why
AF Editor Mike Antich presents insights into the fleet market in the 133rd State of the Fleet Industry video, produced by Automotive Fleet.
🎙Today's topics include:
- The increase in fleet maintenance costs have been substantial, in some cases experiencing percentage increases that are double digit.
- Increased vehicle complexity has exerted increased maintenance costs through the increased volume of vehicle diagnostic fees, increased labor hours to identify intermittent issues, and recalibration expenses for ADAS-equipped vehicles.
- Increase in unscheduled repairs are more fleet vehicles are having their service lives extended due to difficulty in sourcing replacement vehicles.
- Part shortages are lengthening repair times for vehicles increasing vehicle and driver downtime.
- Inflationary pressures are increasing labor rates, parts prices, and pass-along costs from increased raw material prices used to manufacture replacement parts.
- Increased labor rates primarily driven by the shortage of skilled automotive technicians.
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⌚ Timestamps ⌚
1:00 Increased Vehicle Complexity
3:29 Increase in Unscheduled Maintenance
4:56 Delays Due to Back-Ordered Replacement Parts
7:03 Inflationary Price Pressures
7:54 Increased Labor Rates