COO of Zonarpioneering smart solutions for fleet management in professional, student, public transport and commercial trucking sectors.
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In his annual surveyThe American Transportation Research Institute (ATRI) ranked the state of the economy as the fifth biggest concern in the industry. Fleets struggle with skyrocketing inflation, shortages of equipment and parts, high diesel prices, driver shortages and wage pressures. Average hourly marginal operating costs increased from $66.47 in 2021 to $74.65 in 2022, according to ATRI’s August 2022 reporting operational costs. Given the current economic uncertainty, the industry may not have enough time for a full supply chain recovery to strengthen its economic security.
Therefore, fleet managers must protect existing assets. As COO of a company that provides fleet management solutions, I’ve seen how fleet managers maximize the efficiency of their vehicles, equipment, technology, data and resources. There are valuable lessons for all industries to learn regarding asset utilization and people management during periods of economic uncertainty.
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Predictive maintenance can extend asset cycles.
During the pandemic, the supply chain was significantly disrupted, leading to parts shortages in particular in some industries semiconductor chips. This probably contributed to it reports of truck manufacturers canceling orders for vehicles. With the limited availability of new trucks, my company saw fleets using older machines for longer periods of time, resulting in more frequent breakdowns that delayed product deliveries and disrupted normal maintenance schedules. From August 2022, the average age of a truck tractor was 5.7 years, the highest in more than a decade. Annual mileage is down nearly 11% compared to the last survey, which may indicate that fleets were unable to travel as far and/or were experiencing extended downtime due to obsolete parts and maintenance needs.
No one was prepared for this level of disruption, but unprecedented events often lead to the discovery or development of new operational efficiencies. Extending the life of assets is now on the minds of many managers. I think the solution lies in the implementation proactive maintenance programs to diagnose problems faster and prevent progressive engine damage, service costs and downtime.
Each part influences the whole.
Maintain that proactively and predictive requires visibility and planning. Each part influences the whole. Any piece of poorly maintained equipment can cripple the machine itself and possibly an entire operation. Remaining consistent with pre- and post-trip inspections, as well as requiring additional asset inspections, can reduce the likelihood of a faulty or broken business that will take time and money to repair. This includes the simple problems often spotted at roadside checks.
To get the most out of your maintenance program, keep an ongoing record of the service history of your assets. This will reveal if there is a recurring problem and can help you predict possible future maintenance needs based on past performance.
The supply chain crisis also provided a hard lesson. Unexpected upheavals can happen at any time in any industry. Leaders cannot always rely on regular shipments of new assets given the uncertainty of an ever-changing economic landscape. Proper asset maintenance can reduce the risk of exposure to these uncertainties.
A modern culture could contribute to combating staff shortages.
Another major challenge affecting America’s ability to meet supply chain demands is the shortage of truck drivers. In 2021, the American Trucking Association estimated the industry’s current shortfall stands at 80,000 drivers, a number the company says could double by 2030.
This shortage goes hand in hand with an aging workforce. While the average age of new drivers is 35 years old, the average age of all truck drivers is 46 years old, according to a Report 2019 of the American Trucking Associations. This means that the number of incoming recruits may not be high enough to compensate for the coming retirees.
A trucker’s lifestyle is rooted in independence, flexibility, stability and safety, which many current drivers are likely to appreciate at work. Attracting new drivers, however, requires evangelizing the long-term opportunity of trucking.
Fleet managers must actively work to build a culture that empowers drivers and makes safety a core value. Operators and managers in the back office need to be there to support every driver in the fleet. They should focus strongly on communication. Fleet managers need to make sure drivers feel supported and recognized. Involve them in management decisions where necessary. Because drivers are the ones using technology, processes and protocols, it’s important to keep them in the communication loop.
This open line of communication can be established via radio, messaging apps, phone calls and tablets with the aim of boosting driver morale, celebrating successes and career milestones and reminding drivers that there is a team of supporters behind them.
Engage with drivers, encourage them and remember that the technology at your disposal is more than just a way to ensure regulatory compliance. The industry has access to powerful data from many integrated technologies, but it’s up to fleets to use the technologies they use in ways that retain current drivers and attract new ones.
Knowing that any industry’s greatest asset is its people, leaders must do what they can to create a supportive, modern company culture that attracts new and young employees to the market.
What is the way forward for growth?
The economic turmoil is worrying both employers and employees. The challenge of maintaining a vibrant economy in the long run is that there will be economic downturns and calamities to deal with. Focused strategies to extend asset lifecycles with predictive maintenance, better understand and monitor spending related to costly materials, and create a culture that encourages young recruits during workforce shortages can empower leaders to drive organization-wide efficiency and maintain operations, especially in the worst conditions. time.
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