February 2008 - Feature
Forecast of Truck Fleet Management Trends: 2008-2010
By Mike Antich
Upfitting Trends
An emerging upfitting trend is the reuse of upfitted bodies and equipment. Cycling a truck body every other time a chassis is replaced will become more common as a result of the increase in the cost of raw materials. "Managing specialty applications, such as pumping or crane operation, may lead to closer scrutiny of the decision process for replacement, refurbish, or transfer when a chassis is ready for retirement," said Gillies.
The trend to reuse service bodies will likely occur with high-dollar equipment. "There is a trend for body refurbishing and transfer in lieu of acquiring new equipment. This is especially true for end-users who utilize high-dollar service bodies with additional equipment such as cranes," said Mike Sturges, national truck sales manager – southern zone for ARI.
Union Leasing also foresees much more customization with equipment, van, and body innovations that not only will improve the delivery process, but also "have the value, flexibility, and quality to be utilized over second- and third-generation applications," said Carson of Union Leasing.
Another trend impacting upfitting has been the labor shortage. "Upfit suppliers continue to face the scarcity of available, qualified technicians. The technician gap may limit production capacity in some areas, negatively impacting cycle times," said Gillies.
Another factor is increased proximity of upfitters to OEMs. "There will be more ship-thru availability as upfitters build facilities close to manufacturer assembly plants, allowing end-users a greater range of upfit possibilities," said Bob Barr, truck manager for Napleton Fleet Group.
Telematics Shows Promise
Since the late 1980s, telematics has been used by the over-the-road truck industry for delivery scheduling, route optimization, and driver communication. The widespread use of satellite tracking and communication technology in the Class 8 market will continue to migrate to the Class 3-7 market. Fleets are using telematics to capture and report key data related to the truck’s diagnostics, idling, drive time, and fuel economy. In addition, companies are using telematics to enhance driver productivity and route management. In the coming years, telematics will play a larger role in maximizing cargo space for increased delivery capacity, fuel savings, and productivity.
"Telematics allows fleets to capture and report key data related to the truck’s diagnostics, idle and drive time, and fuel economy. Other onboard technologies, such as GPS and Wi-Fi, are also on the rise and help with route planning and asset tracking," said Mike Corchin, manager of truck business development for Wheels Inc.
Future advances promise to make telematics an integral part of fleet management.
"Telematics will be offered by the OEMs and will help in monitoring engines to prevent failures. This should reduce the cost of telematics overall for the options offered," said Bob Shipp, northern zone, national truck sales manager for ARI.
"Due to its rising popularity, telematics equipment may eventually be mandated by the government, especially for trucks that need to comply with DOT requirements," added Corchin.
Telematics applications for Class 6-8 trucks will continue to expand in capabilities and usage in the 2008-2010 timeframe.
"We’re seeing more telematics used for engine diagnostics, preventive maintenance, and decision-making about when to service and/or replace the vehicle. In addition, companies are being very creative in the use of telematics to enhance driver productivity, as this technology helps manage the route, the number of stops, and more. For a service fleet, just adding one more stop per day per vehicle can add up to hundreds of thousands of additional dollars to the bottom line," said Khosla.
Not only will telematics assist in cost-efficient fleet operations, some predict it will also help remarket trucks in the future.
"This type of technology allows fleets to capture more of the truck’s diagnostic data and provides more insight to its service life, which can be a real advantage when it comes to resale," said Pat O’Connor, national truck sales manager for Wheels Inc.
Telematics is beginning to play a larger role with truck fleets interested in improving cargo space for increased delivery capacity, fuel savings, and greater driver productivity.
"Telematics improvements can successfully identify driving behaviors and expose habits that yield inefficient operation. Telematics and BlueTooth wireless technology are also opening a whole new avenue by diagnosing maintenance issues early, prior to major malfunctions. Diagnostic codes can be captured, acknowledged, and acted upon between the fleet management company and the driver — all before a vehicle actually breaks down," said Carson of Union Leasing.
OEM Truck Trends
A number of trends will influence OEM design of future model-year trucks.
"Truck manufacturers are moving towards more vertical integration, especially with engines. They can’t afford to engineer every engine choice out there today into their vehicles," said Robley of ARI.
Another trend impacts brakes. "Disc brakes will overtake drum brakes when the stopping distances are shortened under FMVSS 121. They are also lighter weight, which is an added benefit," said Robley.
Another prediction is that multiplex wiring adoption will spread to body builders. "Multiplex wiring has been around in the truck wiring system and body builders will finally adapt to the system to power lights and accessories on installed equipment," said Robley.
OEMs will adopt other new technologies in vehicle design. "This new technology will include items such as drive-by-wire rather than cables, capacitors for electric storage rather than battery power, accident avoidance systems, and backing cameras," said Lou Pastras, director of key account development for ARI.
Engine governors, common among medium- and heavy-duty trucks, will migrate to light-duties.
"Among the changes to trucks will be engine governors on light-duty trucks from the OEMs. Battery saver systems cut power when the voltage gets below preset levels. Telematics will be used for odometer and location reporting, and engine diagnostics. As with hybrids, telematics may become more commonplace should pricing come down," said Sturges of ARI.
There is greater availability of truck models in individual class segments.
"End-users will have additional choices with new Class 4 and 5 offerings from Dodge with 4500 and 5500 chassis cabs to compete against Ford and GM," said Barr of Napleton Fleet Group.
"Additionally you will have more commercial vehicles from Toyota and Nissan in coming years that will compete in Classes 1-3. There is a possibility of competition for the Dodge Sprinter with the import of the Ford Transit from Europe. There is also the possible import of Ford’s Transit Express to fill the void left by the absence of the GM Astro/Safari. There will be more diesel offerings from all manufacturers with Class 1 diesels becoming available," said Barr.