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Market Trends Blog for Construction Fleets

Our senior editor and fleet expert, Mike Antich, offers opinions and ideas on the Fleet Market Trends. Mike’s highly-read Blog, focuses on the overall fleet industry and draws interesting comments from construction fleet managers and other industry professionals from across the country.

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Higher Operating Costs Forecast for CY-2012

October 24, 2011

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.

Tags: Mike Antich, operating costs

Author: Mike Antich | Posted @ Monday, October 24, 2011 12:00 AM | » Comments(0)

Forecast of 2011 Operating Costs

November 1, 2010

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.

Tags: forecast, fuel spend, operating costs

Author: Mike Antich | Posted @ Monday, November 1, 2010 4:11 PM | » Comments(1)

The Cost of Operating a Fleet Will Increase

May 10, 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.

Tags: Budget Rent A Car, operating costs, PHH, tire, Wheels Inc.

Author: Mike Antich | Posted @ Monday, May 10, 2010 11:25 AM | » Comments(4)

Short-Term Cost-Cutting Strategies Backfire in the Long-Run

February 18, 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.

Tags: cost-cutting, operating costs, replacement cycle

Author: Mike Antich | Posted @ Thursday, February 18, 2010 12:41 PM | » Comments(2)

Forecast of Fleet Operating Costs for 2010 Calendar-Year

October 19, 2009

Fuel costs, the largest fleet operating expense, declined dramatically in the 2009 calendar-year due to a sharp decline in worldwide fuel consumption. Also, many fleets downsized, due to widespread corporate layoffs, which lowered overall fuel spend. However, maintenance and repair costs increased in 2009, primarily due to vehicles kept in service for longer periods as a result of corporations slashing capital expenditures. Open the blog for a forecast of 2010 operating cost trends.

Tags: fuel, industry research, operating costs

Author: Mike Antich | Posted @ Monday, October 19, 2009 5:09 PM | » Comments(2)

Medium-Duty Operating Costs Increase in 2008-CY

April 13, 2009

Key factors that influenced medium-duty truck operating costs in 2008 were the price of diesel, increased repair costs related to new truck technologies, higher labor rates, and decreased utilization. However, fuel was the primary driver behind higher operating costs in the 2008 calendar-year.

Tags: fuel, maintenance, medium-duty trucks, operating costs

Author: Mike Antich | Posted @ Monday, April 13, 2009 2:35 PM | » Comments(0)

Fleet Car Maintenance Costs Increase 5% in 2008-CY

February 8, 2009

Overall fleet car maintenance costs rose 5 percent for the 2008-calendar year compared to 2007, primarily due to increased prices for replacement tires and higher labor rates. Partially mitigating these increases were flat PM expenses and increased vehicle quality, resulting in fewer warranty claims and vehicle recalls. These findings are based on a survey of actual maintenance expenses of 70,374 passenger cars conducted by GE Capital Solutions Fleet Services.

Tags: GE Capital Solutions Fleet Services, maintenance costs, operating costs, study

Author: Mike Antich | Posted @ Sunday, February 8, 2009 7:22 PM | » Comments(0)

Predictions for Fleet in 2009

January 6, 2009

When looking ahead to the next 12 months, I foresee reduced operating costs for fleets offset by increased depreciation expense caused by anemic resale values and decreased incentive monies. Here’s why I believe this will be the case, along with other predictions for 2009.

Tags: depreciation, forecast, fuel, operating costs, resale value

Author: Mike Antich | Posted @ Tuesday, January 6, 2009 10:45 AM | » Comments(4)

Fleet Operating Costs Increase Again in 2008

October 21, 2008

Although gas prices started to decline in August, the year-to-date cost of fuel in 2008 has increased 30 percent compared to last year. The price for replacement tires rose 5-10 percent in 2008 due to higher oil prices and the shift by manufacturers to larger diameter tires. Also, fleet maintenance and repair costs increased across the board in 2008. The cost for non-warranty maintenance services was up 5 percent for fleets.

Tags: ARI, GE Capital Solutions Fleet Services, maintenance costs, operating costs, PHH, Wheels Inc.

Author: Mike Antich | Posted @ Tuesday, October 21, 2008 8:32 AM | » Comments(0)

Fleet Safety Must be Your No. 1 Job Priority

August 18, 2008

In two decades of chronicling the history of fleet management, I have seen interest in fleet safety ebb and flow. In an annual survey I conduct of fleet managers, they rated fleet safety as their No. 2 concern, right behind the cost of fuel. Why the renewed interest in fleet safety? More and more fleet managers are reporting an uptick in preventable accidents. In addition, fleet managers are feeling pressure from other corporate departments to increase fleet driver safety.

Tags: accidents, fleet safety, operating costs, OSHA

Author: Mike Antich | Posted @ Monday, August 18, 2008 12:57 PM | » Comments(1)

Medium-Duty Truck Operating Costs Increase (Again)

April 7, 2008

The key reason for the increase was the cost of fuel, in particular, diesel fuel. This has also led to price increases for other oil-based products such as tires, which increased 4-7 percent in the past year. Other PM costs remained flat.

Tags: medium-duty trucks, operating costs

Author: Mike Antich | Posted @ Monday, April 7, 2008 11:07 AM | » Comments(0)

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AUTHOR BIO

Mike Antich

Editor & Associate Publisher

Mike Antich has been covering the fleet management and vehicle remarketing markets for more than 20 years. During this period, Mike has written or edited more than 4,600 articles on the subjects of fleet management, manufacturer fleet activities, the fleet leasing industry, and vehicle remarketing. He was inducted in the Fleet Hall of Fame in 2010.

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