Factor’s 2022 Market Pulse Survey had over 182 respondents, wherein 91% of fleet leaders rank controlling working spend amongst their prime three monetary priorities, and 81% rank provide chain points amongst their prime three focus areas.
Picture: Factor Fleet Administration
Developments by Factor is a quarterly report that digs into the most recent international fleet traits and insights throughout the U.S., Canada, and Mexico. Every quarter, the FMC prioritizes the three to 4 most related matters that “all fleet leaders ought to concentrate on based mostly on enter from shopper conversations and a considerate evaluation of the most recent macro-economic traits.” The report combines experience from Factor’s Strategic Consulting group, evaluation and insights from its fleet database, and exterior information for macroeconomic indicators corresponding to inflation, third-party used-vehicle auctions, and gas projections based mostly on information from the U.S. Power Info Administration, Kent Group, and Bloomberg.
Highlights from the Q2 “Developments by Factor” report consists of insights on:
Security: Street fatalities are rising as site visitors returns to regular. Establishing a security tradition is vital to making sure driver security and mitigating dangers. Because of the variety of autos on the street growing to pre-pandemic charges, deadly accidents involving automotive crashes in 2021 exceeded 2019 by 19%, in line with the Nationwide Security Council (NSC).
Car acquisition: Provide chain constraints proceed, and putting car orders early stays important to controlling rising fleet prices. The worldwide chip scarcity is prone to proceed impacting autos orders for the rest of the 12 months and into 2023. Within the U.S., there was an 8.4% enhance within the common capital value for every mannequin 12 months (manufacturing facility and inventory). The excellent news is that auto manufacturing may nonetheless enhance this 12 months by as a lot as 30% versus 2021, however it can rely available on the market state of affairs in China and the geopolitical tensions in Europe.
Remarketing: General public sale costs within the U.S. are roughly 30% larger than in 2019. The used market is anticipated to sluggish however stay elevated in comparison with the final 5 years. The outlook for the second half of 2022 (and into 2023) is for general market course of to say no as larger rates of interest and fewer authorities assist decelerate the demand from elevated ranges in 2021.
Gas: Rising gas costs proceed as a consequence of elevated demand and geopolitical uncertainties impacting international crude oil. The U.S. Power Info Administration (EIA) expects the U.S. retail common to be $4.07 in 2022.
For additional evaluation of the North American market and beneficial actions for fleets, view the Q2 Trends by Element report HERE.