Element Fleet Management has released its Trends by Element Fleet Q2 2022 Insights. Focusing on such key issues as safety, supply chain, remarketing and rising fuel costs, the report offers a number of actionable recommendations designed to alleviate the many challenges of managing a vehicle fleet during this tumultuous era.
Safety
A major issue addressed by the Trends report is safety. In 2021, more than 46,000 people were killed on US roads in auto crashes, an uptick of 19% from 2019. Element is recommending that fleet managers focus on education and training, including making sure drivers are well-versed on their vehicle’s safety specifications, technology and expected discipline behind the wheel. This last point can be further bolstered by the use of vehicle monitoring enhancements through telematics.
Supply Chain
Supply chain challenges are affecting all industries and that’s no different for auto manufacturers, who predict this to continue well into 2023. Whereas earlier supplies were delayed due to parts shortages, that issue has been largely resolved.
However, the backlog of inventory that was created by the previous parts shortage remains a sticking point where vehicle acquisition is concerned. This issue could be mitigated somewhat by optimism surrounding vehicle production, where assembly lines could be busier later this year by nearly one-third over 2021 figures. This is, nevertheless, still contingent upon global influences, including China’s market conditions and the war in Ukraine.
According to the Trends report, fleet managers can preemptively ease supply chain woes somewhat by being ready for order cycles. This includes prepping vehicle orders early, including attaining OEM allocations and approvals where necessary.
Remarketing
Due to delays in new vehicle delivery caused by supply chain issues, the used vehicle market remains hotter than ever. This trend will likely subside once new vehicle production kicks into higher gear, as predicted by the report for later this year. The situation is not without its upside for fleet managers.
Because of the strong resale market, this might be an opportune time to evaluate current fleet inventory. Remarketing aged vehicles now can bring both higher market value and create a significant savings in maintenance costs. In addition, keeping remaining fleet vehicles up-to-speed concerning preventative maintenance can assure less depreciation down the line.
Fuel Cost
Despite a slight decrease in recent days, fuel costs are expected to remain higher than ever, primarily due to oil inventory depletion and the current unpredictable global situation. The Trends report does have a number of actionable recommendations that fleet managers can implement to mitigate inflated fuel costs as much as possible, including:
• Usage of the most fuel-efficient vehicles possible
• Utilizing the nearest, most cost-effective fuel supplier
• Increased reliance upon telematics to positively impact driver behavior
The Element Fleet Management Trends report does go into further depth on these issues and more. The full report is available by clicking here.
