By Brett Carlson, co-founder and CEO, ServiceUp
July 30, 2025
A key focus for fleet managers in 2025 is reining in costs, which have risen thanks to high fuel prices, growing labor and acquisition expenses, and supply chain disruptions. Maintenance costs are also high, and increasingly strict regulations have led to compliance issues for many fleets. Although the worst of the pandemic-induced freight recession is over, weaker economic growth forecasts, the threat of more inflation, and the prospect of supply chain problems – thanks to uncertainty around tariffs – have all made cost control vital for fleets of all sizes.
It’s critical for fleet managers to navigate this difficult economic environment and keep costs under control without compromising on quality or safety. This is why managers must focus on effective cost management measures that prioritize vendor accountability, strategic planning, and KPI-like utilization. One of the best ways to implement and track these measures is through a centralized digital platform like ServiceUp, which makes the repair process more efficient and transparent. Fleet managers are increasingly deploying digital tools to streamline their repairs and vendor relationships, and this trend will only continue to gain momentum.
At a time when cost control is an urgent priority for fleet managers, the ability to identify high-quality shops, reduce downtime, and dedicate fewer employees to managing service and repairs is essential. The managers who use all the resources at their disposal to accomplish these goals will put their fleets in a strong position to navigate whatever economic challenges they may face in 2025 and beyond.
Make strategic planning a top priority
Fleet managers shouldn’t have a reactive approach to vehicle maintenance and repair—they must proactively develop plans for repairs, identify qualified shops in advance, and stay on top of regular maintenance to prevent small issues from becoming breakdowns. Vendors should be mapped in terms of their capabilities, certifications, and average turnaround times. Routine preventive maintenance and light mechanical work can be done by fast pit-stop shops, while structural collision and ADAS calibrations should remain with certified centers. Fleet managers should also update their vendor lists quarterly and negotiate rates by tier, which will enable them to get the right prices for the specific services they need.
Telematics can help fleet managers stay up to date on maintenance, which will prevent costly breakdowns, tow bills, and safety issues. By connecting telematics fault codes with OEM service intervals and driver DVIR notes, it’s possible to spot issues weeks before a breakdown. Fleet managers can also schedule repairs during off‑peak windows so drivers stay productive, routes remain on time, and customers see no interruption in service. It’s no wonder that the global telematics market was over $61 billion in 2024, and a CAGR of nearly 14 percent is projected between 2025 and 2030.
The top outcome fleet managers are seeking with telematics is improved asset management and utilization. By using digital tools like telematics and a centralized repair and maintenance tracking platform to improve strategic planning, fleet managers will ensure that vehicles spend more time safely on the road instead of stuck in the garage.
Track every dollar you spend
It’s essential for fleet managers to focus on financial accountability across their operations and vendor relationships. This means rigorously tracking every dollar spent, keeping track of all costs in a single accessible and transparent platform, and flagging cost overruns.
Fleet managers can make cost codes mandatory in work orders, which will allow them to pinpoint higher-than-average costs and determine the cause. Managers should also log parts markups, labor hours, and vehicle downtime in a single dashboard to easily identify where money is leaking and keep track of the status of these leaks over time. Alerts can immediately flag any job running 10 percent over estimate, which will enable managers to intervene before costs begin to snowball.
Developing healthy long-term relationships with trustworthy vendors is a crucial element of cost management. SLAs should reward high-quality, on-time service instead of just low bids—a vendor may offer the lowest initial rate, but this could end up costing more in the long run. Vendors must be aware of service record scorecards to understand what standards must be met, and they should be incentivized with bonuses for performance—this will cost less than delayed or botched service that keeps vehicles off the road.
By closely monitoring costs both internally and across the vendor network, fleet managers will get the most out of their budgets and avoid unpleasant financial surprises.
How digital tools help fleet managers manage costs
It has never been more important for fleet managers to leverage technology, from telematics that improve maintenance and driver safety to digital dashboards that centralize vehicle data, vendor status, and strategic planning in a single platform. Beyond managing repairs and maintenance, digital tools can help with route planning, dispatch and scheduling, and communications.
According to Gartner, the adoption of fleet management software is primarily driven by inefficiency and limited functionality with current methods. While tech adoption is on the rise, 30 percent of fleet managers are still using manual methods such as spreadsheets and physical calendars. These methods are cumbersome and error-prone, and they prevent fleet managers from taking advantage of a wide range of digital capabilities and features.
For example, digital platforms like ServiceUp enable managers to track technician certifications, torque‑tool audits, and comeback rates for each vendor. Managers can publish vendor scoreboards every quarter to spark friendly competition and tie future work to maintaining or improving those scores. Digital resources also enable data collection and analysis on utilization rates and other KPIs, such as idle time, mileage, and load data.
Lowering total cost of ownership is one of the top priorities for fleet managers in 2025. Beyond overall cost reductions, reducing maintenance costs and using technology for cost management are the top ways managers are mitigating economic risk. Fleets still face significant financial headwinds, but managers must manage growing costs without sacrificing quality or safety. By using all the resources at their disposal, fleet managers will cut costs responsibly, build healthier vendor networks, and keep their vehicles operating as safely and efficiently as possible.