Automotive Fleet

JAN 2014

Magazine for the car and truck fleet and leasing industry

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Page 19 of 67

SPECIAL REPORT: STATE OF THE FLEET INDUSTRY ANALYSIS OF CY-2014 FLEET TRENDS Most challenges are perennial, such as cost containment, depreciation management, and budgeting for unpredictable fuel prices; however, coming to the forefront is a greater focus on driver management and safety. BY MIKE ANTICH AT A GLANCE ● The No. 1 challenge facing commercial feets is cost containment. ● Driver management has come to the foreground as one of the top challenges feet managers will face in 2014. ● A key issue is communicating the value of feet to senior management. ● Vehicle procurement in 2014 will increase slightly compared to unit volumes ordered in 2013. ● Sustainability continues to gain importance as a top job focus for feets. ● Driver safety and reducing liability exposure is a top issue for feets. 18 AUTOMOTIVE FLEET I JANUARY 2014 W ithout a doubt, the No. 1 challenge facing today's feets is cost containment, according to a survey of commercial feet managers conducted by AF. "Tere is always pressure to perform well fnancially, but there seems to be more pressure recently," said David Meisel, senior director – transportation & aviation services for Pacifc Gas & Electric Co. (PG&E) in San Francisco. Te pressure is emanating from senior management instructing feet managers to reduce costs. "Our challenge is keeping the feet con- sumption of capital to a minimal level, which is the same challenge we have every year," said Gregg Hodgdon, CAFM, director of feet operations for E.A. Sween Company/Deli Express in HODGDON Eden Prairie, Minn. Te pressure for spend reductions is occurring at all levels within organizations, and feet operations is simply another department requested to cut costs. "Continuing to identify signifcant cost savings is a challenge when most of the big ticket items have been done. We continue to

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