The COVID-19 Recession is Slamming State and Local Government Budgets
September 2020
Effects on fleets could last for years
By Mark Boada, Executive Editor
The Great Recession of 2007 lasted only 18 months, but it took another three to four years for state, county and municipal budgets to recover to pre-recession levels. Now, with the recession brought on by the COVID-19 pandemic, it looks like things are going to be even worse, and fleet suffering may be greater and longer than in the last economic contraction.
But, as Steve Saltzgiver, a long-term government and corporate fleet manager, wrote here in July, there are a number of initiatives that fleets can take to soften the blows and put themselves in a better position when the economy recovers. Before recounting them, though, it’s important that fleet managers understand the basics of the current recession and how it compares to the last one.
The current recession is in only its eighth month, but in some respects it’s already the worst U.S. economic contraction since the Great Depression of the 1930s.
Used-Vehicle Market Digs Out from Supply-and-Demand Chaos that Caused Enormous Distortions in Wholesale Prices
Used vehicle wholesale prices jumped 3.6% in August from July, and 15.8% from August last year, capping one heck of a magnificent price spike, based on Manheim’s mix-, mileage-, and seasonally adjusted Used Vehicle Value Index.
But in late August, prices started backtracking But in the week ended August 30, auction sales of vehicles up to eight years old plunged 23% from the prior week, to 73,000, J.D. Power said in a note sent out last week. This was the lowest since May 3, and down about 35% from the pre-Pandemic range.
J.D. Power expects wholesale prices to continue to decline through the end of the year to where they’ll be just “slightly” higher than before the Pandemic.
Read the article at Wolf Street.
Electrify America Moving Into Home Charging Market
Electrify America is expanding its product portfolio with the launch of a new business unit called Electrify Home designed to make it easier for EV owners to charge their vehicles with convenient home charging solutions.
“Right now, about 80% of electric vehicle charging is done at home. With the launch of Electrify Home, we’re providing flexible and forward-thinking home charging solutions for EV drivers of today and tomorrow,” said Nina Huesgen, senior manager, Home and eCommerce at Electrify America.
Beyond its Electrify Home offerings, Electrify America will continue to grow its public network of ultra-fast EV chargers with a goal to install or have under development approximately 800 total charging station sites with about 3,500 chargers by December 2021.
Read the article at The Detroit Bureau.
Wrench Grows Its On-Site Fleet Maintenance Business
Some fleets are busier than ever, and Wrench has continued to grow its on-site fleet maintenance business during the pandemic.
Miami-Dade’s Fleet Department Rises to the Challenges of the Pandemic
There have been a lot of changes in response to the pandemic - including updated safety protocols and new safeguards for personnel - but Miami-Dade’s fleet department has risen to the challenge.
