The average purchase price of light-duty service trucks increased from 2006 to 2013 while the miles such trucks were driven decreased between 2009 and 2012, according to a recent study by fleet analytics firm Utilimarc.
Utilimarc's - Nikki Sabby
Utilimarc's - Nikki Sabby
Anyone with responsibility managing service trucks knows that many factors go into keeping vehicles effectively maintained and running efficiently, no matter the size of the fleet. Likewise, most service truck fleet managers can share similar stories regarding the many issues they must deal with almost daily.
Given all this, there is value in knowing what is happening industry-wide, which is where Utilimarc (www.utilimarc.com) fits into the overall knowledge equation. Based in Minneapolis, Utilimarc is a fleet analytics company that specializes in finding custom solutions for unique fleet-related problems. In May 2015, the company released a fleet benchmarking study focused on light duty service trucks.
Using data collected from 40 of their utility fleet benchmarking clients with active light-duty service trucks, the study identifies industry patterns based on a sampling of more than 3,600 vehicles (4x2 and 4x4) under 20,000 gross vehicle weight rating and with a service body without an aerial device.
For some data, the time period of 2006 to 2013 was the focus, while other data used the 2009 to 2013 timeframe. Graphs presented in the study share information on things like average purchase price by year; operating costs (without fuel) per mile; average miles driven by year; drive type percentage since 2009; and more.
Study highlights age, price usage
Highlights from the study include the following findings:
• From 2006 to 2103, the average purchase price for 4x2 trucks increased nearly 20 percent, while the average purchase price for 4x4 trucks increased more than 15 percent during the same period.
• For 4x2 and 4x4 trucks, the annual average miles driven between 2009 and 2012 remained consistent, while in 2013 there was a decrease in annual miles driven for both types of vehicles; though, from 2009 to 2013, 4×4 vehicles were driven an average of 2,168 more miles annually than 4×2 vehicles.
• The average age of both 4×2, and 4×4 vehicles has steadily increased since 2009; and there was an overall increase in operating costs per mile for both 4x2, and 4x4 vehicles as they age.
• From 2009 to 2013, the average number of days between unscheduled/demand repairs remained consistent for 4x2 vehicles, while during the same time period 4×4 vehicles saw a decrease in the average number of days between unscheduled/demand repairs.
“Based on the data provided by our clients, they are paying more to purchase and maintain 4x4 trucks versus 4x2 trucks, while the age of 4x4s is less than that of 4x2s,” said Nikki Sabby, a business development manager at Utilimarc, who added that there are no scheduled plans at this time to update the study in the future. “Also, while the 4x2 has been the more popular drive type for light-duty service trucks, the 4x4 has been becoming more popular.”
Results come as no surprise
Christoper Lyon
From an industry perspective, there are not really any surprises found in the study, said Christopher Lyon, the director of fleet relations for NTEA, the Association for the Work Truck Industry, which provides information, education, training, and legislative guidance to around 1,800 companies
involved at all levels in the industry. NTEA is also the producer of the Work Truck Show, a well-known annual industry event.
“It was a pretty data-driven study, so people can draw their own conclusions,” Lyon said. “The biggest takeaway for fleet managers, though, is probably the importance of examining your drive cycles and duty cycles and then determining the best cost projection model that works for your situation.”
Lyon acknowledged that costs associated with service trucks have also increased over time, but these increases can be attributed to such factors as inflation, increased emission standards, and the addition of various advanced technologies.
Life cycles, however, are a key for Lyon. “Comparing the cost of acquisition and the cost of maintenance is important, but adopting good preventative care and maintenance programs can definitely improve the lifecycles of your service trucks,” he said.
The complete study can be found at https://utilimarc.com/fleet-benchmarking.
Mark Yontz is a freelance writer from Urbandale, Iowa.