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AF Editor Mike Antich discusses managing such issues as acquisitions, extended lifecycles, and rising maintenance and labor costs with Kimberly Fisher, global fleet director for NOV, a major oil and gas services company.
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Part and labor prices have increased 4-8%, while part and labor availability have decreased. Due to difficulties sourcing replacement vehicles, fleets are keeping units in service longer. This caused repair spend to increase in 2021.
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The vehicle maintenance and repair industries are experiencing a skilled labor shortage as technicians in the Baby Boomer demographic retire in greater numbers than those replacing them. The skilled labor shortage requires shops to pay more for skilled technicians, which translates into higher shop labor rates.
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The robust economy is creating record numbers of new jobs and a subsequent labor shortage that is being exacerbated by the large wave of Baby Boomer retirements, but some see uncertainty of future market conditions.
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Although the largest operating cost continues to be fuel, the No. 1 challenge facing medium-duty truck fleets is cost containment. There is always pressure to reduce costs, but management is exerting even more pressure than in recent years.
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