All fleets face unique challenges, whether in the commercial or construction industries, public or private sectors. Seeking to know more about those challenges, as well as points of pride and profit in 2023, and the priorities most important to fleet operators in 2024, fleet management provider Shell Fleet Solutions recently conducted a survey in conjunction with National Association of Fleet Administrators (NAFA) among its membership. The results shed light on a variety of topics that covered day-to-day operations
The in-depth stats found in the survey, can be found in the whitepaper, Shell Fleet Solutions 2024 Fleet Trends Survey Results: Surprising takeaways on how fleet stakeholders spend time and energy.
MWS recently spoke with Jim Perkins, director for Shell Fleet Solutions, US, who provided insights into what the survey uncovered.
MWS: What were the key standout results of the survey?
JIM PERKINS: The topics most fleets responded to strongly weren’t surprising. Reducing total cost of ownership (TCO), maintaining or improving safety, and incorporating sustainability into fleets, all scored high across the survey.
Asked to rate the six categories by level of concern for 2024, stakeholders graded TCO the highest. In fact, more than half of respondents to the survey graded it as their highest or second-highest area of concern this year with safety just behind.
That result was similar to the top goals for fleets in 2024. When we asked how much TCO would be a goal in the year ahead, over 88 percent agreed that reducing overall costs would be a priority.
MWS: You mentioned safety as another area of concern. What other areas did fleets flag?
PERKINS: Safety finished second as a top priority, something fleets are aware of and constantly working on as the No. 2-ranked area for time spent among fleets in 2023. Over 86 percent agreed that fleet safety was a priority or top concern for 2024.
Reducing overall costs and bringing down TCO are important to fleets, and safety is one key area that can help achieve both goals. This makes sense when you consider that a single nonfatal accident on the job can cost over $75,000, according to the Network of Employers for Traffic Safety.
Finishing in the top five for priorities were sustainability, electric vehicles (EV), and business growth. As a fleet management provider, we hear from our customers that many fleets are working to find avenues to run a more streamlined fleet operation, while navigating what fleets will look like – and how they will be run – in the future.
MWS: The survey talks about points of pride and profitability. Where are fleets finding success?
PERKINS: The numbers for pride and profitability are close to what we’re seeing for priorities and concerns. Safety placed first, showing that fleets can point to their safety efforts as a positive factor in overall operations.
Over 75 percent called out TCO as a point of pride and profitability – that fleets are making progress in meeting budget goals. Overall sustainability placed third, with over half of respondents feeling proud of their efforts in this space.
MWS: Sustainability and EVs are a buzz word across the fleet world. What conclusions can be drawn from the survey data?
PERKINS: Sustainability and most notably EVs are making an impact for fleets. Whether it’s due to local, state or federal mandates, operators are thinking about how they can implement sustainability measures. Over 60 percent of respondents said fleet sustainability goals were a top priority for this year.
Additionally, over 56 percent agree or strongly agree that investing in initial or additional EVs is a priority for 2024. When asked which industries and trends they pay the most attention to, 41 percent of respondents mention EVs or related sectors, in their open-ended responses.
One thing to take away from this, which we are seeing in real time, is that many fleets are expected to be a hybrid mix. Just like fleets aren’t confined to a single class type, you may see a mix of both ICE and EV. Most fleets are not planning to immediately replace all their ICE vehicles with EVs, but the transition is happening and is expected to continue for the foreseeable future.
MWS: Were there any other standout figures?
PERKINS: Over 71 percent agreed that external global or national market and political factors – such as supply chain disruptions, inflation, recession fears and sustainability mandates – were a top concern for their fleet.
While supply chain issues and inflation are starting to see some relief, there are still lingering effects from the pandemic that fleets are having to consider. Various local, state and federal mandates and policies are affecting fleet operations.
Many of our fleet customers are acutely aware of their costs. That’s where fleet management providers can work toward helping fleets – to sort through any obstacles and help assist with their total cost of ownership as they try to find relief when setting budgets.
MWS: Based on the results, where do you see changes in the fleet world?
PERKINS: Change is coming fast – the survey highlighted that fleets are on a tight timeframe to achieve their goals. Nearly 40 percent stated that they have 12 months to implement changes that benefit their fleet, and over 25 percent only have six to nine months to address barriers and make meaningful progress. While there are a variety of external factors influencing businesses, the survey results show that fleets are working on changes they can control.
As for changes ahead, we see time and energy are precious commodities to fleets. They need to feel confident they can see results when they take the step to address improvements. We believe that fleet operators can be very discerning when moving forward.
The industry is changing rapidly, especially in areas of technology and sustainability, which may seem overwhelming. That it’s becoming more affordable to purchase EVs and the growth of data available to fleets make these shifts valuable in the long run.
ABOUT THE INTERVIEWEE
Jim is the head of Shell Fleet Solutions USA, leading a team of sales and marketing professionals. He has worked for a variety of Shell businesses during his 30-year career. Before joining the Fleet Solutions team in 2014, he spent most of his career in the Shell Mobility organization as well as the Jiffy Lube organization.
To learn more about the results of the Shell Fleet Solutions-NAFA survey, please download the Shell Fleet Solutions 2024 Fleet Trends Survey: Results Surprising takeaways on how fleet stakeholders spend time and energy whitepaper by visiting www.shell.us/fleetsolutions.
