A recent industry-wide survey by Fleet Advantage highlights the significant concerns fleets have about replacing older trucks. Fleet Advantage provides specialized financing, data analytics, fleet management, and life cycle cost management services.
The survey aimed to understand fleet life cycle strategies and gauge awareness of the upcoming CARB prebuy mandate. The results, shared at the Advanced Clean Transportation (ACT) Expo in Las Vegas from May 20-23, indicate that truck procurement and life cycle management remain critical topics, especially in light of the anticipated CARB mandate. This mandate is expected to cause a major increase in truck purchases between 2025 and 2027, potentially raising the cost of diesel trucks by $25,000 to $30,000 per unit.
Given the pressing issue of aging fleets, over 3,000 transportation fleet executives were surveyed between April 29 and May 10, 2024. Findings revealed that 71% of respondents operate trucks older than five years. When asked about trucks from model year 2019 or earlier, 62% reported having up to 50 such vehicles, a noticeable increase from last year’s 37%.
Despite the need for truck replacements, 23% of respondents were either unaware of or uncertain about the CARB mandate. However, 68% acknowledged that the mandate would lead to increased truck purchases leading up to 2027. Although many fleets currently run on a five-year or longer life cycle, 68% felt it necessary to replace up to half of their fleet within the next two to three years, indicating a trend toward shorter life cycles.
Approximately 75% of respondents plan to replace up to half of their fleet in the next two to three years. While 36% have a CARB prebuy procurement plan, 44% either lack a plan or are unsure if one exists.
Fleet Advantage described this as an alarming sign that many fleets are unprepared, potentially facing severe financial impacts.
In terms of future procurement trends, 57% of fleets plan to replace aging vehicles methodically, ensuring they refresh equipment consistently without overspending on new trucks all at once. About 20% will maintain their current replacement cycle, regardless of additional CARB costs. Meanwhile, 23% plan to keep their existing trucks a bit longer.
Brian Antonellis, Senior Vice President of Fleet Operations at Fleet Advantage, emphasized the importance of understanding the CARB mandate’s significant implications for fleet procurement and finances. He stressed the need for organizations to leverage data technology and analytics to develop a multi-year procurement strategy, maximizing total cost of ownership and promoting efficiency and sustainability.
Source: The Trucker
