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Maintenance Costs

Fleet fixed and operating costs are increasing across the board, in particular fuel prices, higher acquisition costs, lower incentives, and unscheduled maintenance expenses. The forecast is for fleet expenses to increase for the next three years.

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Preventative Maintenance Costs Increase 3-5% in 2021

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.

Unscheduled Maintenance Costs Increase 3% in CY-2021

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.

Severe Skilled Technician Shortage Triggering Higher Shop Labor Rates

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.

Upward Pricing Pressuring Fixed and 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.

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