Fleets coming under cost pressure according to new research
The annual fleet barometer, supported by vehicle leasing and fleet management company Arval, looked at the state of the market across 16 countries with more than 4,800 interviews conducted with fleet decision makers this year. Feedback from UK fleet professionals showed that cost pressure is expected to be most severe for the largest companies (1,000+ employees), although companies of all sizes are expecting challenging times and an increase in cost pressure.
Despite continuing cost pressure, it is interesting that UK fleet professionals expect the size of their vehicle fleet to grow throughout 2012, a view most prominent with fleet professionals at companies with 100+ employees. This demonstrates a focus on managing and reducing fleet costs, but not by cutting the number of vehicles.
Mike Waters, Senior Insight & Consultancy Manager at Arval commented: 'Given the current economic conditions in the UK, and around the world, it really is no surprise that fleet operators expect cost pressures to increase over the course of the year. However it is reassuring that they do not plan to respond to this by cutting the size of the vehicle fleet.'
'The reality is that companies across the UK rely on their vehicles to operate irrespective of the economic conditions. So while cost pressure creates a focus on the best ways to manage fleet spend, it often shouldn’t translate into a reduction in fleet size,' he added.
'In these conditions, fleet best practises and the use of funding methods like Contract Hire provide a way for companies to reduce their financial risk, cut out unnecessary fleet costs and effectively manage tight budgets,' Mr Waters concluded.