A variety of factors converged to exert upward pressure on preventive maintenance costs, such as longer vehicle service lives due to limited product availability, the ongoing transition to synthetic oils, and higher labor rates to attract scarce technicians.
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.
Many tire OEMs have increased prices in CY-2021, ranging from 3-10% depending on type of tire and size. Higher commodity prices and increased ocean freight rates are being passed on to end users as OE profit margins compress.
Many factors converged to exert upward pressure on PM costs, such as longer vehicle service lives due to limited product availability; the ongoing transition to synthetic oils; and higher labor rates to attract scarce technicians.
Truck fleet drivers have a significant impact on a fleet’s maintenance costs. Ensure drivers are involved in truck maintenance and spell out fleet policies.
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.
Higher fuel prices and maintenance costs, along with upward pressure on maintenance labor rates are a few of the factors increasing fleet operating costs.
Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.
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.
On average, PM costs have increased due to higher labor rates, expansion of models requiring synthetic motor oil, and more expensive cartridge oil filters. One offset is that longer lasting synthetics have extended oil-drain intervals.
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