Fleet Advantage has unveiled the findings of its latest industry benchmarking survey, drawing ideas from industry leaders on a range of topics such as the use of alternate-fuel trucks, equipment finance trends, and strategies for the environment and social and governance (ESG). The survey demonstrated increased interest in battery electric vehicles and revealed that respondents are leasing their trucks and placing greater emphasis on ESG outcomes in shorter truck life cycles.
According to Hadley Benton, Executive Vice President of Business Development at Fleet Advantage, flexibility is an essential business and financial strategy for meeting corporate and ESG goals in the years ahead. “Our latest benchmarking study illustrates not only the staunch need for this flexibility, but it also reiterates how companies are changing their philosophies, and now have a growing desire to work with asset management partners who offer the right programs that benefit all aspects of their organization to meet short- and long-term goals,” Benton stated.
Among the topics discussed in the survey, the majority of respondents (40%) said they plan to deploy alternate fuel trucks within the next 1-2 years, while 65% of the respondents this year said they are looking to deploy battery electric trucks. These findings are in stark contrast to just a year ago when the majority (54%) said they plan to deploy alternate-fuel trucks within 5-10 years, and only 3% of executives said they were procuring electric trucks.
Moreover, Fleet Advantage recently announced its plans to place orders for 200 EV Class 8 tractors for deliveries commencing in calendar year 2023. The company is committed to assisting its customers’ transition to alternative energies toward a zero-emissions goal using off-balance sheet lease financing with little or no residual risk.
Regarding equipment financing trends, the survey showed that nearly half of the respondents (42%) are leasing their trucks, a significant jump compared to just 14% two years ago, while 33% said they are locked into their current financing situation and have little negotiating room. This underscores the importance of data analytics, such as lease vs. purchase or unbundled vs. full-service lease comparisons, in planning and procurement of truck acquisition.
Organizations need to monitor additional key financial metrics to analyze their Total Cost of Ownership. These metrics include sales tax analysis, comparative cost analysis, per unit P&L, OEM equipment cost tracking, SWAP rates, residual values, and predictive life cycle modeling. Such analysis helps companies make informed decisions related to asset financing and acquisition.
Maintenance and repair (M&R) trends continue to be top-of-mind for fleet executives. Seventy-four percent of respondents said they are conducting maintenance in-house, an increase from 63% from the previous year. Flexibility is a growing trend, and unbundled lease structures offer companies the highest level of flexibility, especially when market conditions, fuel, and interest rates experience volatility.
In conclusion, the survey revealed that the transportation industry has shifted focus to alternative fuels and emphasized the importance of flexibility, asset management, and ESG outcomes in truck life cycles. Discernible trends in equipment financing and maintenance and repair practices underscore the importance of data analytics and informed decision-making in the transportation and logistics industry.