Tips to managing a downturn

,

Trucking is a cyclical business and after most carriers enjoyed some record financial quarters, the economy seems poised to turn south. The risk of a U.S. recession is now 60% according to consensus estimates. But there are things trucking companies can and should be doing to safely weather any kind of looming economic storm.

Be transparent

Reporting on business metrics positively will help managers and stakeholders make lucrative decisions that limit the risk to employees.

  • Create a scorecard for each month detailing fleet size, fuel consumption, and repair costs, while highlighting any benefits received from vendor discounts or partner programs. Then compare those losses to profits gained by holding fast with effective business practices and structured evolution.
  • Provide higher-ups with ways to cut expenses and impact operational efficiency without sacrificing quality, ability, or continuity. If assets aren’t being utilized, propose ways to impact the bottom line by repurposing or removing them.

Don’t stop investing

The worst thing to do in a downturn is to stop investing. You can’t cut your way to profitability. You have to have a plan and stick to the plan. Investments in IT projects, facilities, and new equipment should not be shelved. Every time the economy starts to slow, we want to extend the life of our equipment. But this way, repair costs will rise, putting the carrier in a hole that’s difficult to emerge from. So, continue to invest in your good people, your drivers, your employees.

Optimize your network

Examine your network and focus growth and investments in the most profitable lanes. Discuss with customers which lanes are a good fit and which aren’t, and allocate available capacity to those that make the most sense for both parties. Fleets need to assess each load and lane in their network, based on the revenue they generate and the cost and time it takes to service those lanes.

One thing many carriers don’t have access to is accurate transit times. Take that into account. Give a profit score to every load. Right now would be a good time to start if you’re not already doing that. If you’re responding to RFPs (requests for proposals) without this data, you’re loosing money.

It’s hard to predict when the economy will level out after tanking, so taking steps to prepare for the worst will prevent negative consequences. For fleet managers, the first steps should be protecting employees and assets, removing unnecessary processes, and digitizing manual methods to save on supplies and retain valuable time.

IoT and telematics tracking in trucks can reveal whether specific vehicles use more fuel than others. Fleet managers can then perform repairs to make them more fuel-efficient or replace them with newer, more economical alternatives. Similarly, data over time can highlight which routes lead to the highest diesel consumption, informing future route planning.

Link2Pump is an alternative that helps fleets managers to save fuel. You can improve delivery planning and fuel distribution management, saving money without losing effectiveness and deadlines.

/0 Comments/by

IKEA begins autonomous freight delivery

,

Kodiak Robotics joined IKEA Supply Chain Operations in piloting autonomous freight deliveries in Texas. The partnership includes a Kodiak autonomous heavy-duty truck transporting IKEA products seven days a week between its distribution center in Baytown and its store in Frisco.

Kodiak said the main purpose of running the route is to get a better understanding of how its autonomous driving technology contributes to increased road safety and better working conditions for truck drivers on the longer distances. The driverless truck has a professional safety driver behind the wheel who picks up a loaded trailer at the distribution center each morning and oversees the autonomous delivery to the store by late afternoon.

Kodiak said it’s able to leverage its built-for-scale solution to rapidly and safely add new lanes. These include the recently announced launch of commercial operations between Dallas and Oklahoma City and service between Dallas and Atlanta. Kodiak has been delivering freight daily between Dallas and Houston since mid-2019, and delivering freight between Dallas and San Antonio since mid-2021.

Automated driving

While self-driving passenger cars tend to get the most attention, autonomous driving tech is poised to have an even greater impact on the global trucking and logistics industry.

Autonomous trucks aren’t yet commonplace on the world’s highways, but recent advances in autonomous trucking technologies mean that self-driving trucks could soon become a vital part of modern logistics operations — and an everyday sight for millions of motorists. Autonomous trucking could hugely increase efficiency and reduce costs, as well as help shore up critical weaknesses in many supply chains that cause shortages during disruptions like the Covid-19 pandemic.

Investors are starting to pay more attention to the space, backing increasingly larger deals to autonomous trucking startups lately.

Some recent developments in autonomous logistics are transforming trucks themselves, as auto manufacturers envision a future in which truckers’ cabs serve as mobile offices, fully connected to the grid via 5G and other wireless networking technologies. But beyond the vehicles, an entire industry of supportive technologies has emerged to provide solutions for logistics and goods haulage, from fleet management to freight matching.

/0 Comments/by

Seasonal maintenance tips as the cold weather rolls in

,

The time to start thinking about the seasonal checks you need to make to prepare your trucks for the winter months is now. The extreme winter conditions only exacerbate underlying problems that may go unnoticed up to a light comes on, and your truck is sidelined.

Regular and precise maintenance will save you a lot of time, money, and hassle in the long-run so here are some seasonal preparation tips to keep in mind as the cold comes trucking in.

Check tires and tire pressure

We know that the air in tires expands and contracts as the outside temperature fluctuates. Freezing temperatures can obviously make this worse than normal, so it is important to maintain proper inflation on the tires for them to function safely and not cause excess wear. If you have tires with wearing tread, this can cause slippery driving conditions as well. Having correctly inflated tires, and running winter tires in good condition, will help prevent breakdowns and accidents.

Prevent corrosion

The mix of chemicals and salt used to clear the snowy roads on top of the frigid temps can take a toll on your truck’s performance. Corrosion affects every fleet and can ruin your components if the connections are not secure and water tight. By utilizing high-quality parts meant to withstand the harsh demands of winter and prevent moisture, your truck’s uptime is more likely to increase. Using proper lubrication will additionally prevent breakdowns caused by increased friction and corrosion.

Check the battery

The battery is no exception to needing special care in cold weather. It is imperative to make sure the battery is not past its expiration date, so you know it is capable of holding a good charge. You may want to consider keeping a good voltage tester on board. It is important to keep the battery in a fully charged state and the terminals free of corrosion, which can slow or prevent a charge and leave you with a dead battery.

Keep your fuel tank at least half full

Some truckers typically usually get only filling enough fuel for each trip, however, in the winter there are benefits to keeping more fuel in the tank, such as condensation build-up that will add unwanted water into your tank. Even if you have a water separator for fuel going into your tank, condensation build-up can still allow water to get in there after the fact.

Don’t idle trucks

It’s a popular strategy, but starting a cold truck and letting it idle is not only ineffective, but also damaging to your engine. If you need to warm a truck that’s been sitting overnight, drive it around the yard or parking lot. This will exercise the truck more efficiently, allowing it to warm the engine, transmission, differential, and suspension evenly.

Whether you’re running (or driving) one or 100 trucks, maintaining a good routine relies on easy communication between your drivers, fleet managers and operations teams. It’s always a good idea to share seasonal safety messages that remind drivers of any unique conditions. Combine this with regular, thorough vehicle inspections, and it can help keep your fleet in top shape across the colder winter months.

/0 Comments/by

What to expect from public fleets in the future

,

With new vehicle advancements being rolled out every year, the current fleet industry is nothing like its predecessors. Telematics, EVs, and a fresh demand for parts has kept the industry moving at an unprecedented pace. To get a better grasp of the current state of the fleet industry, leaders in the field discuss what we can expect in the future.

As the world is working to bounce back from a multi-year pandemic, the fleet industry has noticed a direct hit to the supply chain for not only parts but vehicles. Industry experts have specifically noticed a shortage of a key component for fleets: microchips. The shortage doesn’t just stem from a single instance. Instead, coming out of the pandemic shutdowns, a reduction in vehicle production that was later met with a skyrocketing increase in demand, and that has all led to shortages.

But looking at the industry’s supply chain from a management side, fleets need to plan ahead with purchasing as prices go up and vendors close down. If there is one takeaway from trying to understand the future of vehicles, it’s that telematics will bring the industry into the next century. Able to provide vehicle insight and diagnostics that were previously inaccessible, telematics have created a way to better plan for the next generation of vehicles while better understanding the fleets of today.

From knowing how many miles a vehicle has traveled, to knowing the cost of travel and being able to plan repairs, telematics seems to fit with the natural progression of vehicles and a trend toward more electric components.

Telematics systems are a way to continually learn about the vehicles being driven. It’s with this learning process that he hopes fleets will succeed.

The whole idea is to try to manage your costs. And it comes down to a very basic thing. If you can’t measure it, you can’t manage it. And that’s what they help you do.

Vehicle fuel consumption, for example, on average represents about 20% of total municipal energy usage for towns. And a good first step in reducing municipal fleet fuel consumption is to understand where and when fuel consumption is occurring.  This information can help municipal officials, staff, and volunteers to identify major sources of fuel consumption, and decide where to focus fuel usage reduction efforts.

Link2Pump service can be very useful in this area, as we offer solutions such as:

— instant tracking of fuel expenditures by department

— real-time tracking and reporting by vehicle, driver, division and more

— no fuel misuse, our system can prevent drivers from accidentally filling gas into diesel powered vehicles

If you want to learn more about our solution and are searching for alternatives to manage your municipal fleet, please get in touch.

/0 Comments/by

How Trucking is Tackling the Diesel Technician Shortage

,

The professionals needed to repair heavy-duty trucks and commercial vehicles require a set of skills distinct from the “grease monkeys” of 40 years ago. It’s time the industry pivots to reflect this change, say those closest to the issue.

The industry faces a looming question: How will it train enough technicians on alternative-fuel engines, battery-electric vehicles, fuel-cell-electric vehicles, and the latest smart-screen dashboards? The need for new skills and knowledge has caused schools to upgrade their curricula. But how can fleets help address this critical issue?

There are no easy or concrete answers. But what is certain is that you want to train techs on innovative technologies now, so we have technicians who can work on them later.

Schools have enough students in the pipeline today, but not necessarily students mastering skills the diesel industry needs. Educational gaps can take some blame for this. However, fleets working in silos versus partnering with educational facilities share responsibility, too.

Heightening concerns are issues surrounding the industry’s need for technicians tomorrow and the educational pipeline of today. According to the latest Bureau of Labor Statistics projections for 2020-2030, demand for diesel technicians will continue to rise, albeit slightly slower than before, at about 1% a year. This growth will generate a need for 25,000 new diesel positions by 2030.

But that’s not accounting for the technicians that will be needed to replace those leaving the industry — 163,000 positions by 2030. The COVID-19 pandemic led to a giant spike in technicians changing careers, leaving the workforce or retiring early. There’s no question that the technician shortage has grown more acute in the last decade.

TechForce Foundation’s 2021 Transportation Technician Supply and Demand Report explains the void as a matter of supply and demand. The demand for automotive, collision and diesel technicians in 2021 exceeded the number of technicians completing their certification in 2020 by over 500%. That means the industry must quintuple the number of technicians entering the field just to keep pace with current demands.

People still apply the concept of dirty work to commercial vehicle repairs. It’s a stigma that persists and drives people away. STEM (science, technology, engineering, and math) classes also can steer students toward these careers. Many students gravitate toward robotics and computer electronics, both of which are in high demand in the technician space. The industry needs these skills, and they are rewarding careers.

Encouraging job shadows and internships at the high school level can attract more students to the fold, as can recruiting students while they attend post-secondary education. Penske, for example, employs recruiters to forge working relationships at vocational-technical schools and at the high school level.

Another creative method of reaching out to young people is the TMC SuperTech augmented reality game, which lets players progress through a career as a maintenance technician to a shop owner in the trucking industry. The app, sponsored by the Arkansas Office of Skills Development, TA Petro, Cummins, Dana, and others, is inspired by TMC’s national technician skills competition.

Scholarships also help drive this effort. TMC and Old World Industries have partnered to offer a series of scholarships for students looking to pursue an education in heavy-duty commercial vehicle maintenance. The PEAK Performance Scholarships will support two students with up to $12,500 each for their education at a college or vocational school.

The technician shortage lacks a short-term answer. But fleets that think long-term will do better than those that don’t. These forward thinkers will partner with education and industry to access recent graduates trained to their needs. They will recruit well and from diverse groups. And they will do what it takes to keep technicians for the long haul.

 

/0 Comments/by

Ready-Mix concrete market growing to exhibit a remarkable CAGR of 8.50% by 2029

, ,

Global Ready-Mix Concrete Market was valued at USD 181.14 billion in 2021 and is expected to reach USD 1427.31 billion by 2029, registering a CAGR of 8.50% during the forecast period of 2022-2029. The increasing investments in the construction industry extend profitable opportunities to the market players in the forecast period of 2022 to 2029.

North America dominates the market in terms of market share and market revenue, and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the increase in new infrastructure projects within the region.

We know that the recent outbreak of coronavirus had a negative impact on the ready-mix concrete market. The severe disruptions in various manufacturing, as well as the supply chain operations due to the various precautionary lockdowns, hampered the market. During the COVID-19 outbreak’s lockdown, the various end users of the ready-mix concrete market were impacted. Construction activity had slowed around the world, resulting in a considerable reduction in the demand for ready-mix concrete. 

On the brighter side, the increasing investments in the construction industry extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, due to its great convenience, improved quality, and ease of use, the product is frequently utilized as a substitute for unusual concrete, further expanding the future growth of the ready-mix concrete market.

Managing the Fleet

To deliver ready-mixed concrete profitably, communications between dispatchers, drivers, and customers are crucial. Along with time constraints of a perishable product comes the need to balance customer orders with available trucks.

The vehicle location system’s versatility has a major impact on coordinating business. That’s because the system integrates a real-time, enhanced Global Positioning System (GPS) vehicle tracking function with an onboard data recorder, wireless, real-time, and two-way in-cab communications terminals. All vehicle location and status information, as well as fleet management reports, are delivered via the Internet.

The status and location of each truck needs to be as accurate as the driver’s input. There was constant chatter between dispatchers trying to confirm or get updates on locations and the status of each truck. This results in a much quieter, much more efficient dispatch department.

/0 Comments/by

Survey shows carriers remain optimistic about demand

,

Carriers are optimistic about growth in volume and rates this year, despite rising fuel and equipment costs that are squeezing profitability, according to the latest Bloomberg and Truckstop.com survey. 

About 72% of respondents expect load growth over the next six months, vs. 71% in 4Q and 1Q a year ago. Temperature-controlled carriers were most optimistic with 77% expecting higher volume, followed by 74% of flatbed carriers who are benefiting from a strong housing market.

Fewer carriers are optimistic when looking at rates: About 55% of respondents expect spot rates (ex-fuel surcharges) to rise in the next six months, vs. 59% in 4Q. About 14% of carriers expect rates to decline over the next six months, in-line with historical averages. Only 2% of truckers polled expect rates to drop quickly this year, and another 32% expect them to slowly moderate.

More carriers are hauling fewer loads: Truckload spot demand rose 4.3% year-over-year in 1Q, based on the Bloomberg | Truckstop.com survey, a seventh straight quarterly gain after dropping 16% in 2Q20 as the pandemic began. Median volume growth was closer to flat, given the wide divide between those carriers experiencing growth and those not moving as many loads. About 37% of respondents hauled more loads vs. 1Q21. About 32% recorded a drop vs. 25% in 4Q21 as the number of carriers who experienced flat volume decreased to 31% sequentially from 38%.

Rising fuel costs are a concern for carriers: About 56% of carriers said that higher fuel costs are the industry’s greatest challenge. Lower rates are the second-biggest concern in 2022 at 21% of the sample, followed by the weakening economy (16%). Despite these concerns, about 69% of those surveyed anticipate the truckload market will remain tight this year.

How can Fuel Tracking Technology help you save fuel?

  • Reduce engine idle time
  • Have better control of the routes taken by vehicles
  • Know how efficient drivers are being
  • Create the best routes for vehicles

Link2Pump services account across the US, helping businesses to save human and financial resources in the fuel tracking and reporting process. By automating and managing fuel dispensing from bulk storage tanks, we turn a complex process into a simple experience.

Link2Pump Pedestal automates the fueling process on-site, capturing the data points you need and sending them to your online account in real-time. Account access is available from any device, anywhere, any time. Fully compatible with mechanical, digital, and electronic dispensers, each unit controls up to 4 fueling points and features extensive data input options and restriction capabilities.

Loss of fuel, or fuel that goes unaccounted for, is a sometimes-overlooked expense. Fuel theft is nearly a $133 billion issue that includes stolen, adulterated, and defrauded products. But here’s the good news: Fuel loss can be prevented, and the bottom line can be protected. Card-locking control technology combats the potential of fuel theft by allowing only authorized individuals to access fuel.

When fuel can account for up to 50% of a job’s total operating costs, it’s important to do everything possible to protect fuel assets. 

Our company has solutions for several industries, such as agriculture, aviation, construction, government, marinas, manufacturing, mining, transportation, and utilities. If you want to learn more about our solution and are searching for alternatives to improve the bottom line and productivity, please get in touch.

 

/0 Comments/by

Ohio to use IoT tech for fleet management

More than 40 state agencies in Ohio will begin using fleet management technology by Geotab to improve operational efficiencies in areas like fuel consumption, route design, idling, and the application of materials like sand and salt.

The contract enables state and local government agencies to equip fleet vehicles with Geotab’s connected IoT technology, which can track a wide variety of vehicle data, including location, maintenance, driver performance and fuel usage. The data provided allows the state to improve vehicle utilization, maintenance, winter operations, safety and fuel efficiency, among other things, the company said.

Telematics, a shorthand for technology that brings together communications, vehicle operations and digital analysis, is increasingly being embraced by public fleets hoping to work more efficiently, as well as leverage other data collection streams beyond the general nature of the vehicles themselves. In other words, a snowplow or garbage truck can gather road quality data as well as rubbish.

But perhaps the real benefit of fleet management technology lies in its ability to better track and understand routes — like those used by garbage trucks — as well as better manage the operations of vehicles to reduce idling time, or extend the range of electric vehicles.

Geotab will provide a “telematics database” offering DAS a look into numerous data points which can be analyzed to shape decisions around using the fleet more effectively and efficiently.

Some features offered include a public works solution that is specially designed for public works fleets, particularly when it comes to applying and controlling materials like salt and sand. The keyless feature enables a vehicle to be used by multiple drivers, without the need for physically handing off the keys from one staffer to another. Fleet managers can also manage these operations remotely.

Link2Pump launches on Geotab Marketplace

Link2Pump is the only automation and fuel management partner on Geotab’s marketplace. Geotab is advancing security, connecting commercial vehicles to the internet and providing web-based analytics to help customers better manage their fleets. Geotab’s open platform and Marketplace allow both small and large businesses to automate operations by integrating vehicle data with their other data assets. They were also ranked the #1 commercial telematics vendor worldwide by ABI Research and continues to be recognized for its innovative technology and solutions.

By integrating Link2Pump with Geotab, fleets get increased efficiency at the pump and improved reporting tools, including automatic odometer capture, over the road and on-site transaction reports on a centralized platform, and increased ROI by combining engine idle and private roads travel data with Link2Pump centralized off-road fuel tax refund reporting.

Link2Pump provides open API for 3rd party system’s integration, free updates and training, life-time warranty on hardware, no questions asked. No hidden fees. No binding contracts.

/0 Comments/by

When switching from leasing to purchasing is more effective

Back in the mid-2010s, the City of West Jordan, Utah, realized its police vehicles were in bad shape and began discussing ways to bring the fleet up to date while reducing repairs and downtime. It decided on leasing and began in 2015 with the first group of vehicles. However, a change in leadership brought about a cost/benefit analysis of leasing all these vehicles.

It decided on leasing and began in 2015 with the first group of vehicles. There were about 120 vehicles, marked and unmarked, divided over three years with three-year leases. The vehicles would be sold with all up fitted equipment still installed, except the radio and video equipment.

However, they decide to make a cost/benefit analysis of leasing all these vehicles.

Fleet data showed that unmarked vehicles could run for double the time the city had them, if not more; marked units could easily be kept for an additional year or two. However, since it was a three-year lease, which is less than the target life of the vehicles, they couldn’t be kept longer.

The Fleet Department found moving to a four- or even a five-year lease would save some money: the numbers showed a 32.75% savings in TCO. With lease payments per year reaching over $1.3M, that projected saving about $447K of that payment.

What the city found after taking a massive loss in remarketing that first year was it would strip the vehicles, replace any damaged interior panels, clean them, and then send them to auction. With the additional work and attention, it was able to take a gain instead of a loss.

Use your fleet’s telematics data to analyze and validate business expenses

Whether you have a trucking, delivery or commercial fleet, operating it is going to cost money. But like most businesses, you likely budget and forecast those expenses as a part of your standard operations.

By using fleet management software, you can now have connected vehicle data which in turn can help you calculate actual operating expenses which can then be compared to your budget. Comparing the numbers will help fleet managers determine areas where they can effectively cut costs, increase productivity, identify outlier expenses and eradicate them and achieve overall fleet savings. Telematics solution provides great insights into driver behavior and attitude. These insights help fleet managers observe driver performance. 

A fleet tracking device can also detect harsh use of the vehicle, which impacts its condition over time. Harsh braking can wear down brake pads, for example, reducing their life. By interceding with driver behavior, you can reduce bad habits that impact the life of certain parts and vehicle systems by replacing parts and providing service less frequently.

/0 Comments/by

Where the construction industry is heading in 2022

Each year brings new challenges in the construction industry, and 2022 is no different. COVID-19 has been with us for more than two years, and the decisions made by governments and businesses in the early stages of the pandemic are still affecting the markets today – and will for some time.

According to an analysis of government data completed by the Associated General Contractors of America (AGC), prices of construction materials jumped 20.3% from January 2021 to January 2022. The producer price index for new non-residential construction, which is defined as the prices charged by goods producers and service providers, also increased by 20.8% over the past 12 months. Steel, lumber, cement and copper prices continue to rise in 2022, and many expect it to keep increasing throughout the year due to construction activity and the Russia-Ukraine conflict.

While the effects from COVID-19 have been difficult on businesses, there have been some positive changes. To support the increasing demand of projects, companies are building new warehouses and distribution centers. In addition, more businesses are shifting to e-commerce, leading to the build out of data centers to provide the appropriate bandwidth for online business activity.

Equipment Availability

Distributors are having to get creative to meet their clients’ needs, such as selling units from their rental fleets that they might not have ever considered, utilizing the benefit of fully depreciating rental fleet equipment under the 2017 tax law changes. However, this could create tax issues at a later date.

Many contractors are realizing that with the lack of availability of both new and used construction equipment, they need to re-evaluate current inventory to ensure they have the equipment needed for jobs and to limit costs. We have seen a shift in contractors opting to buy equipment rather than rent it because their monthly payments are similar, if not lower, than their monthly rental payments. As rates start to increase, the cost to finance equipment will go back to being more expensive than renting, and you will see it shift back.

As we have seen so far in 2022, it has brought both opportunities and challenges to the construction industry.

/0 Comments/by