TNI || New Delhi || 09th March 2022
Because new trucks are hard to come by in North America, fleets are relying on older vehicles for extended periods of time.
As a result, the cost of fleet maintenance is continuing to climb. According to Decisiv President and CEO Dick Hyatt, new research conducted by the American Trucking Associations, ATA’s Technology & Maintenance Council, and Decisiv has found this.
As per the survey, maintenance expenditures increased by 3.7 percent in the fourth quarter and thus are rising more than 10% year over year.
During one media briefing at the 2022 TMC Annual Meeting in Orlando, Florida, Hyatt stated that the North American economy continues to effect components and labour prices for fleets in numerous ways.
H “However, the continued drive across fleet maintenance operations to establish increasingly efficient and effective service management methods is assisting in ensuring the best possible level of equipment utilisation.
Hyatt reported that when comparing the fourth quarter of 2020 to the fourth quarter of 2021, combined fleet parts and labour expenses increased by more than 10.8%, as per the latest Decisiv/TMC North American Service Event Benchmark Report.
Labor costs increased the most, by 14.2 percent, while parts costs increased by 8.8 percent.
According to TMC VRMS system-level code, fleets spend the majority of their budgets on vehicle powertrain maintenance and repairs.
Fleets revealed that powertrain maintenance accounted for 36.8% of their expenditures.
Repairs to exhaust systems contributed to 14.2% of total costs. Brakes were the third most expensive maintenance item for fleets, contributing about 5% of total expenditures.
According to Hyatt, these higher cost percentages, especially brake costs, may represent the greater number of miles trucks are driving.
Meanwhile, increased engine and exhaust system costs may reflect the current need to maintain vehicles in operation longer.
He believes that such reasons are also causing some of the continued increases in parts and labour prices.
Parts prices are likely to be affected by distribution chain and inflation difficulties, while labour costs are anticipated to rise as a result of both the need for further maintenance of older vehicles and a tight labour market. As a result, fleets are spending more money to retain and hire technicians.