New LCV report points way to recovery.

Cost issues may change the landscape for van operators in the future – particularly against a background of recovery from recession, according to a new report just published by BCA. 

Professor Peter Cooke suggests in the study that if changing business needs require a ‘just in time’ approach to LCV fleet management, some fleets may change from a wholly-owned, or wholly leased, strategy to a more flexible small core fleet (owned or leased) which is added to through short-term rental as needed. 

He comments:  “There are potential implications for cost savings right across the organisation – release capital, fewer units to manage, greater utilisation of the fleet and a more flexible fleet capacity to better balance supply and demand.”

Undoubtedly, fleet management is becoming more sophisticated.  Cooke argues that in future “managing a fleet will become more demanding and more professional”, and concludes:  “Throughout the period of economic recovery, the role of the fleet executive in managing LCV acquisition, operation and disposal is likely to become more important than it has been in the past.”

Significance of issues influencing fleet decisions

  Average score out of 10:
  Now In 12 months
Fleet running costs 8.6 8.9
Fleet safety and risk management 7.6 8.0
Fuel costs    7.5 7.9
Driver and corporate taxation 6.6 7.0
Environmental concerns 6.0 6.8
Traffic/congestion 5.5 6.0
Improved communications technology 5.1 5.6
Mobile working 4.9 5.4

Source:  Fleeteye survey, December 2009

The report highlights the potential for changing business practices within the LCV fleet sector and the importance of total management control through the acquisition, use and remarketing of LCVs.