Magazine for the car and truck fleet and leasing industry
Issue link: https://autofleet.epubxp.com/i/140727
❲ CONTENTS ❳ www.automotive-feet.com ❲ INDUSTRY DIRECTORIES ❳ 57 73 94 97 102 104 110 112 113 Editor and Publisher Ed Bobit Vice President Group Publisher, FleetGroup Sherb Brown MANUFACTURERS (310) 533-2451 FLEET MANAGEMENT COMPANIES Editor and Associate Publisher FLEET MANAGEMENT: NON-FUNDING SERVICES Managing Editor REMARKETERS Associate Editor Mike Antich (310) 533-2467 Lauren Fletcher (541) 213-2097 Chris Wolski (310) 533-2442 FUEL MANAGEMENT COMPANIES Assistant Editor Athena Mekis (310) 533-2414 MAJOR FLEET SUPPLIERS Web Editor Greg Basich (310) 533-2572 TRUCK AND VAN EQUIPMENT & UPFITTERS Field Editor FLEET DEALERS Al Cavalli Editorial Intern ASSOCIATIONS/AGENCY/CALENDAR GUIDE Broc Smith (310) 533-2566 Production Director Kelly Bracken Production Manager ❲ DEPARTMENTS ❳ 8 MARKET TRENDS 120 ADVERTISERS' INDEX Brian Peach (310) 533-2548 Art Director Armie Bautista Subscription Inquiries (888) 239-2455 bobitpubs@halldata.com National Sales Manager ❲ MARKET TRENDS ❳ Sherb Brown (310) 533-2451 District Advertising Managers The State of Commercial Fleet Management in 2013 Regional Sales Manager Eric Bearly (310) 533-2579 eric.bearly@bobit.com MIKE ANTICH T Sustainability and Safety Still Strong with Fleets An ongoing challenge facing today's feets continues to be the elevated cost of fuel. As the largest cost component of operating expenses, feet managers are focusing on a multitude of fuelreduction strategies. Te shock from fuel-price spikes in prior years prompted many feets to downsize to smaller vehicles and engine displacement to increase overall feet fuel economy. A corollary concern is the ongoing fuel-price volatility, which has kept managing fuel spend a top concern for feet managers, who, in turn, are being pressured by management to search for ways to improve overall fuel efciency. Te industry has been experiencing fuel-price volatility since 2002. A key reason is that there are pre-existing weaknesses in the nation's fueling infrastructure. For example, no new refneries have been built in the U.S. since the Garyville, La., refnery went online in 1976. Tis has resulted in limited refning capacity, especially for the production of reformulated gasoline, which increases the frequency of regional spot shortages. Fleets are taking a multi-pronged approach to control fuel costs, such as spec'ing four-cylinder, instead of six-cylinder, engines, implementing anti-idling programs, and increasing the 4 A parallel approach involves driver education/behavior modifcation by encouraging drivers to maintain proper tire pressure, to drive less aggressively, and minimize unnecessary idling. One bright spot has been maintenance costs, which have remained fat as the quality of vehicles from all OEMs continue to steadily improve and extended powertrain warranties have covered some expensive repairs at higher mileages. However, one operating expense that has been on the rise is the cost for replacement tires. A key factor to higher tire prices is commodityprice increases for raw materials, in particular the higher cost of oil, which is a key ingredient in tire manufacturing. Another positive trend is with resale values, which continue to remain strong. Today's resale values are strong, as dealer demand continues to exceed wholesale supply. It's not that demand is substantially greater for used vehicles; rather, demand is strong because the inventory of used vehicles in the wholesale market is low. However, used-vehicle supply will increase in reaction to increased new-vehicle sales. Tis will cause resale prices to moderate as supply matches demand in the wholesale market. Operating Cost Trends p8 here is ongoing pressure to contain feet costs due to corporate cost-cutting initiatives. Pressure for spend reductions is occurring at all levels within corporations, and feet operations is simply another department mandated to cut costs. Reducing feet costs is a constant, never-ending struggle for all feet managers. Despite an improved business climate, many companies continue to remain cautious in terms of capital expenditures. Most feets are seeking cost reductions by increasing operational efciencies. For instance, fuel efciency considerations have become a greater factor in vehicle selector decisions. Many feets are mandating minimum mpg requirements before a vehicle can be added to a selector. In addition, companies are looking to rightsize vehicles in reaction to cost containment and fuel-efciency initiatives. Truck feets continue to focus on aerodynamics, reduced rolling resistance tires, revising vehicle specifcations, and use of engine governors to maximize fuel economy. Tere is also widespread adoption of idling reduction policies, route optimization, tire pressure monitoring, and driver behavior modifcation. Fleet sustainability initiatives remain important to commercial feets, but many feet managers report that corporate management is now viewing "green" increasingly through an economic perspective. Despite these economic concerns, many companies remain fully committed to achieving self-imposed sustainability targets, especially multi-national corporations. Cost continues to be the largest challenge to reducing a feet's environmental impact. In today's economic environment, many companies are cautious about spending money without a quick, proven payback. However, corporate sustainability initiatives will play a greater role in vehicle acquisition. Te increased number of hybrid models available from OEMs will facilitate this trend. Tere is increased concern about vehicle and driver safety and minimizing liability exposure, which is ofen being driven by senior management. Fleets are seeing an uptick in preventable accident frequency, primarily due to driver distraction. Driver distraction has become a major issue due to employees multitasking behind the wheel and the widespread proliferation of smart phones and other handheld data devices. AUTOMOTIVE FLEET ❙ 2013 Great Lakes Robert Brown Jr. 1000 W. University Dr., Ste. 209 Rochester, MI 48307 (248) 601-2005 Fax (248) 601-2004 rbrown8799@aol.com ● On the Cover – The Automotive Fleet Fact Book is the No. 1 industry resource, including more than 20,000 facts and 1,000 people. Sales & Marketing Coordinator Tracey Tremblay (310) 533-2518 Chairman Edward J. Bobit CEO Ty F. Bobit COO Cyndy Drummey AUTOMOTIVE FLEET (ISSN 0005-1519) (USPS 038620) is published monthly with additional issues in April and June, by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals postage paid at Torrance, California 90503-9998 and additional mailing offces. POSTMASTER: Send address changes to Automotive Fleet, P.O. Box 1068 Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes and new subscriptions to take effect. Subscription Prices United States $35 per year; Canada $42 per year; Foreign $75 per year. Single copy price - $10; Fact Book - $50. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. CFO Richard E. Johnson Bobit Business Media 3520 Challenger St., Torrance, CA 90503-1640 Fax: (310) 533-2503 Printed in U.S.A.