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Fuel costs, continued disruption following the Covid-19 pandemic, and supply chain pressures are the top challenges facing fleet managers globally, according to research by Teletrac Navman.
The telematics company surveyed more than 1,800 fleet operators, in countries including the UK, with the aim of understanding the problems they are facing, and how they planned to adapt in 2023.
It found 39% thought rising fuel costs were a concern, ahead of the impact of Covid-19 (32%), and supply chain pressures (31%).
Teletrac Navman president and CEO Alain Samaha said: "The last 12 months have created new complexities for fleets, but fuel cost rises are the number one concern for operators globally.
"As the cost per gallon of fuel spiked throughout last year, many operators looked to overcome the rising costs with driver behaviour programs and EV transition plans."
Converting to alternative fuels was named as a challenge by 23% of those surveyed, with 30% of fleets planning an alternative fuel transition in the next 12 months. Elements of concern included EV supply, purchase price, and charging infrastructure, while 32% of respondents said the conversion to next-generation fuels was one of their largest areas of expense, second only to purchasing new vehicles.
Teletrac Navman head of global product management and UX Mayank Sharma said: "With supply chain issues continuing to impact EV vehicle availability and cost, some fleets are struggling to start the transition and are having to find ways to safely extend vehicle life through preventative maintenance and more conscientious use on the road.
"However, those with the available capex to be early movers to EVs could gain a competitive advantage as they won't be exposed to any further rising petrol or diesel costs, they'll be reducing their environmental impact which is coming more into play in customer contracts, and will likely benefit from government grants and subsidies that will later be removed."
Survey respondents were also asked about their investment plans for 2023. In response, 48% said they were planning to expand their offering through technological integrations, while 39% said they planned to use technology to aid compliance.
Improving customer experience was named as an investment target by 39% of those surveyed, while 31% planned a focus on driver recruitment and retention.
Plans to implement digital workflows (39%), and video telematics (38%) were also revealed.
Nearly all respondents said they used telematics with their fleet. When asked why, 43% gave vehicle tracking as a reason, while 33% named managing driver performance, 32% proof of service/job completion, and 30% monitoring fuel usage.
Regarding driver performance, 37% said telematics improved driver safety, and 24% said it helped prevent driver fatigue. 89% of those surveyed used telematics to benchmark behaviour, with 91% also seeing a reduction in accidents.
Sharma said: "Driver performance benchmarking is a great method of inspiring drivers to perform better and safer on the road. And with the growth in mobile applications it has never been easier for drivers to see how they are performing against targets and peers.
"In fact, 40% of our respondents say that implementing telematics has helped to build a safe driving culture within their organisations."
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