As demand for construction projects increase and raw material costs spike, construction companies need to be strategic in managing fleet risk, controlling operating costs and improving overall productivity.
The US senate’s $1 trillion infrastructure spending plan is expected to increase the demand for construction services. However, the industry faces rising labor and raw material costs as global supply chains continue to recover from the height of the pandemic. In fact, the Turner Building Cost Index, which measures raw material costs in the U.S. construction market reached a peak of 1189 in early stages of the pandemic. Since then, the index remains near the all-time high. These pressures create an opportunity for companies to improve their cost structures and strategize methods for increased operational efficiencies.
Here are the top three trends and strategies for construction fleets to improve fleet performance.
Increased focus on safety and greater need for fleet risk management
- In an industry that faces high levels of risk, driver protections can offer safeguards and ensure compliance with regulations to avoid fines and lost projects.
- When outsourcing safety and collision management to a fleet management partner, your organization can further protect its employees.
- Motor vehicle record checks, fleet driver risk profiles, scorecards, and advanced driver safety training help fleet drivers avoid collisions and remain compliant with all industry regulations.
Rising material costs and delays causing greater need for fleet planning and cost control
- The right fleet partner can help you plan ahead for vehicle replacement cycles and provide you with timely market updates to navigate fleet cost pressures and vehicle component delays.
- Fleet costs are a top five controllable expense, yet many organizations do not have visibility to their fleet costs as reports are in silos. A fleet management partner can enable you to make strategic, cost-effective decisions and keep your fleet performing at its best.
- Fleet partnership benefits can include access to a nationwide network of preferred maintenance providers, negotiating rates on your behalf and monitoring charges to avoid the risk of price-gouging.
- Fuel costs are in constant flux. Therefore, monitoring and optimizing fuel consumption is increasingly important to manage your bottom line. The right fleet partner can help you reduce fuel costs and protect against fuel fraud.
Need for improved fleet productivity and reduced downtime
- It is more important than ever to keep your drivers on the road and servicing your clients. Every hour spent in a repair maintenance shop translates to lost revenue or wages. It also contributes to customer satisfaction vulnerabilities.
- The right fleet management partner can help you increase productivity through automated preventive maintenance notifications, 24/7 contact centers and emergency roadside assistance for drivers.