As we prepare to move into 2022, it is not uncommon for business leaders to look at the year that’s passed and extrapolate the trends to try and foresee what the year ahead might bring in terms of profitability, challenges and opportunities.
The fleet sector is an industry that according to Motor Trader has grown a staggering 42% in the last decade. However, it looks like the future holds some challenges.
Longer waits for vehicles
Much like the home building market and several other industries, the fallout from the pandemic has put delays on leading times in the fleet sector. Staff shortages are set to continue as the rules about isolation show little sign of ending soon. Delays in the deliveries of parts is also contributing, making it hard to complete work on vehicles. Parts and vehicles may become pricier if the shortages persist.
EVs will ramp up
Sustained pressure to reduce the country’s carbon footprint almost guarantees that the shift to electric vehicles will accelerate in 2022. Incentives and deadlines are being set by the government to encourage consumers to make the switch and although there have been unexpected cuts to these schemes, the overall expectation is that more EV products will become available over the year and more buyers will choose them.
Trucks will dominate fleet sector purchases
With home deliveries booming, trucks and lorries have been in short supply over the past year. The demand for light duty trucks (especially within retail) continues to grow and therefore these sales will climb at a higher rate than car sales. Growing dependence on vans is good news for Fuel Card Services like the BP Fuel Card because commercial fleets are heavy fuel consumers and use them to track vehicles as well as cut costs.
Inflation nation?
There is no question that the cost of living is rising but is it only because of the pandemic or a more permanent issue? Whether fleets use diesel, petrol or electricity the industry is sure to encounter problems because of inflating fuel costs in 2022. To stay competitive, fleet industries will need to explore every means to reduce costs (like the BP Fuel Card).
Preventable accidents will rise
The majority of accidents are down to driver distraction and, sadly, as the industry struggles to cope with understaffing and high workloads, accidents could rise.