Fleet Budgets Are On The Rise
When the global recession hit, it had a huge effect on how many businesses operate and the fleet industry was not an exception. Budgets were slashed. Organizations were forced to do the absolute minimum just to stay afloat. Although to some industries it may feel like the economy still hasn’t picked up, according to a recent NAFA Fleet Management Association Economic Survey, things are looking good for the fleet industry. Budgets are on the rise.
The survey results from 2009 indicated that 50% were having their budgets decreased from the prior year. This year, only 20% reported a decrease in their budget and 34.8% actually reported an increase in their budget over the previous year. Manufacturers reported strong sales over the year which indicates that many fleet managers who had put off replacements as long as possible are starting to get back onto a normal replacement schedule.
Planning for future equipment replacements
There’s no way to know how the economy will play out in the future, but it certainly looks positive at the moment for many fleets. Fleet management software can be used to help organizations plan ahead for replacements within the fleet easily. Collective Data fleet management software systems have an optional Budget Module available that gives fleet managers the ability to set the expected life cycle of vehicles and an anticipated inflation rate of vehicle pricing over that life cycle. By doing that, fleet managers can easily forecast what will be needed in the budget to replace the vehicles at the end of its life cycle. If desired, you can also track a payment breakdown per month or year to save/budget for the purchase.
Where fleets go from here
Many fleets have changed as a result of the recession, no doubt. The old days of operating without knowing the numbers are becoming a thing of the past. Many organizations implemented tools such as fleet management software and telematics to get a better understanding of their bottom line and find ways to cut costs. But now, as budgets increase for some, they can continue to use those tools make better purchasing decisions, negotiate better discounts, analyze the benefits of offering vehicles with better fuel economy, and have an easier time planning budgets. Just to name a few.