Market Trends

Replacement Cycles

1  -  5  of  5

Running Trucks Till the 'Wheels Fall Off' is Expensive and Counter-Productive

October 4, 2012

The cliché in fleet management is that trucks are kept in service until the wheels "fall off." In many cases, this isn’t too far from the truth. Typically, the more expensive the asset, the longer it will be kept in service, especially units upfitted with expensive auxiliary equipment. However, as study after study shows, extended truck replacement cycles often have the unintended consequence of resulting in greater long-term expenses and degradation in worker productivity.

Tags: upfitting, Productivity, Replacement Cycles, lifecycle

Author: Mike Antich | Posted @ Thursday, October 4, 2012 12:00 AM | » Comments(5)

Policy Versus Guideline: The Trend Toward Flexible Replacement Cycles

October 4, 2012

Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is taken out of service. A growing number of fleets are shifting to more flexible vehicle replacement cycles. Some fleets no longer call their replacement cycle a policy and instead call it a “guideline.” They want to reserve the right on determining when to take a vehicle out of service based on prevailing market conditions rather than predetermined mileage and months in service.

Tags: Replacement Cycles, lifecycle, Fleet Policy

Author: Mike Antich | Posted @ Thursday, October 4, 2012 12:00 AM | » Comments(2)

Short-Term Cost-Cutting Strategies Backfire in the Long-Run

February 18, 2010

The new reality of a tighter corporate operating environment has forced fleet managers to pursue two different types of cost-cutting goals - cost deferral and cost elimination. However, many cost-cutting decisions for fleet are made for the short-term, with very little consideration for total cost of ownership. Sometimes senior management is more interested in the fiscal, rather than economic, consequences of their decisions.

Tags: Operating Costs, Cost-cutting, Replacement Cycles

Author: Mike Antich | Posted @ Thursday, February 18, 2010 12:41 PM | » Comments(2)

The Dangers of Extending Replacement Cycles

May 12, 2009

Vehicle replacement policy is one of the most critical aspects of fleet management. Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. In a recessionary economy, senior management demands expense reductions and there is pressure to defer vehicle replacements. However, such a policy change could actually prove to be counterproductive to the intended goal.

Tags: fleet operations, Vehicle Replacement, replacement vehicles, Recession, Replacement Cycles

Author: Mike Antich | Posted @ Tuesday, May 12, 2009 12:00 AM | » Comments(6)

Analyzing Depreciation Trends: 2007 vs. 2006

November 20, 2007

Depreciation continues to be the largest fleet expense; however, fuel, as a percent of total fleet cost is growing (rapidly). Fuel expense is influencing vehicle acquisition strategies, with a direct bearing on future depreciation.

Tags: Depreciation, months-in-service, Replacement Cycles

Author: Mike Antich | Posted @ Tuesday, November 20, 2007 10:42 AM | » Comments(0)

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