The more expensive the asset, the longer it is kept in service; however, the need for short-term cost savings prompts some fleets to even further extend cycling parameters and defer replacements. But, what are the consequences?
July 26, 2016
Lower prices for gasoline and diesel have been a welcome relief for fleets, in some cases, reducing operating costs by 25-30 percent. While the past three years have been heaven-sent for the fleet industry overall, it has had a dramatic impact on fleets operated by energy companies, which are scrambling to cut costs to offset the decline in oil prices. The unfortunate fact of life is that one person’s fortune is sometimes another’s misfortune.
November 2, 2015
Calendar-year 2015 marks the third consecutive year that fleet operating costs have remained stable compared to the past three years, primarily due to the continuing softness in gasoline and diesel prices. Replacement tires, the second highest operating cost, were stable due to the ongoing softness in commodity prices, primarily rubber and oil, while increased maintenance intervals contributed to lower maintenance costs for fleets. The forecast is more of the same for CY-2016.
October 16, 2015
Utilimarc's report about the Toyota Prius shows that operating and fuel costs for the hybrid car are much lower than gasoline compact cars, but the Prius is making up a smaller portion of the compact car class in fleets each year.
July 22, 2015
There are a number of frequent questions fleet managers ask about propane autogas and its benefits.
June 30, 2015
The City of Stamford, Conn., went $290,000 over its fleet maintenance budget of $1.4 million, mostly due to winter weather. About $24,000 was used to pay for tires.
May 20, 2015
Simply cutting corners is usually not the best solution for fleet managers to stay within their budget. Instead, by learning how to operate their fleets more efficiently, fleet managers can retain more cash long-term.
May 19, 2015
For the second consecutive year, total fleet operating costs have remained flat for commercial fleets when compared to the prior year. This blog identifies the 15 factors that are putting downward pressure on fleet operating costs.
October 20, 2014
Five Nissan LEAF users share their driving experiences. Is reality matching expectations?
July 9, 2013
There is ongoing upward pressure on operating costs for medium-duty truck fleets. Factors impacting operating costs are volatile diesel prices, replacement tire costs, and longer service lives, which are increasing maintenance expenses due to component failures, escalating parts prices, and higher labor rates. Here are 10 strategies fleets are employing to mitigate these cost increases.
March 18, 2013
Fleet operating costs are forecast to trend higher in calendar-year 2012. Replacement tire prices are expected to increase 6-10 percent due to higher raw material costs and higher commodity prices. In addition, higher commodity prices will put upward pressure on component costs. Similarly, inflation will put upward pressure on labor rates in high-cost markets. The one bright spot is that fuel prices are forecast to remain at 2011 levels due to the ongoing sluggish economy.
October 24, 2011
COLUMBUS, OH - The City of Columbus expects to significantly reduce operating costs and improve efficiency in its utilities department by implementing GPS tracking solutions.
January 24, 2011
Operating costs will trend higher in the 2011 calendar-year, primarily due to an incremental increase in fuel prices, which represent the largest fleet operating expense category. Another factor contributing to upward pressure on operating expenses will be higher maintenance costs, primarily due to extended replacement cycling. Beyond 2011, fleet acquisition costs are anticipated increase to meet higher CAFE requirements.
November 1, 2010
It will become more expensive to operate a fleet in the coming years. Vehicle acquisition costs will increase. Fuel prices, in all likelihood, will trend upward and maintenance costs will ratchet higher due to more companies adopting extended replacement schedules. In addition, vehicle-related taxes will increase. Let's examine the dynamics that will force fleet expenses to escalate.
May 10, 2010
The new reality of a tighter corporate operating environment has forced fleet managers to pursue two different types of cost-cutting goals - cost deferral and cost elimination. However, many cost-cutting decisions for fleet are made for the short-term, with very little consideration for total cost of ownership. Sometimes senior management is more interested in the fiscal, rather than economic, consequences of their decisions.
February 18, 2010