The Source for Multinational Fleet Professionals
The rule of thumb has been to replace vehicles before the operating costs trend line starts to exceed that of fixed costs. But what happens when you can’t source replacement vehicles due to order allocation restrictions?
Five factors — vehicle complexity, unscheduled maintenance, parts delays, inflation and labor costs — have contributed to double-digit price increases.
Mike Antich examines the top factors causing increasing maintenance costs in this week's State of the Fleet Industry video.
Average maintenance spend on vans has increased 17% since the pandemic began.
Which five trends are affecting the increase in fleet expenses? Tune in to this episode of State of the Fleet Industry as Mike Antich examines several factors.
Fleet fixed and operating costs are increasing across the board, in particular fuel prices, higher acquisition costs, lower incentives, and unscheduled maintenance expenses. The forecast is for fleet expenses to increase for the next three years.
Despite continued supply chain issues, fleets are tasked with replacing vehicles. In this State of the Fleet Industry video, Mike Antich explores current inventory and ordering challenges, gas prices, fleet maintenance costs and controlling a budget.
Among the factors contributing to increased maintenance expenses has been increased miles driven, supply chain constraint, parts shortages, longer downtime, and a tech shortage exerting inflationary pressures on labor rates.
Many tire OEMs have increased prices in CY-2021, ranging from 3-10% depending on type of tire and size. Higher commodity prices and increased ocean freight rates are being passed on to end users as OE profit margins compress.
Many factors converged to exert upward pressure on PM costs, such as longer vehicle service lives due to limited product availability; the ongoing transition to synthetic oils; and higher labor rates to attract scarce technicians.
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