There remain a multitude of economic changes in 2024, and while this has been top of mind for many in the industry ever since the pandemic, heavy duty fleet executives are cautiously optimistic about the current year and how it may shape up for their organizations.
The economy in 2024 has been punctuated by a general sense that inflation is becoming more closely aligned with the Fed’s target, and this could spell lower interest rates at some point during the year. This would be a sign of relief for those organizations looking to invest in new trucks and equipment, especially as the cost of equipment has become a serious issue for many. Immediately following the pandemic, supply chains made availability a major issue. Today it is no longer about availability, and instead more about the cost of entry into new equipment.
Because of this shift, many leading fleets are now focused on building a strategic, multi-year acquisition plan based on a methodical and disciplined approach to life cycle management. A plan that can adapt to changing market conditions and is designed to inject more flexibility into procurement decisions while assigning stronger fundamentals to managing the organization’s TCO and bottom line is a necessity.
As highlighted by the American Transportation Research Institute (ATRI), various industry issues such as truck parking, fuel prices, and driver shortages, remain front and center for fleets. Despite these ongoing challenges, it remains an exciting yet pivotal time in the industry. The transportation fleets that leverage a KPI driven asset management plan and focus on shortening their life cycles to create the lowest possible Total Cost of Ownership (TCO) will be the ones that are positioned most competitively at the end of the year.
Furthermore, observers at ACT Research believe U.S. freight fundamentals will improve in 2024. Entering the year, freight demand was below typical trends, but analysts believe it will continue to recover, driven largely by continued consumer spending and subsequent retail sales activity, according to ACT. What’s more, organizations with private fleets are faring better than for-hire carriers, especially as these businesses face harsher realities of the difficult economy.
The use of data and analytics is playing a larger role in helping fleets make more informed decisions in responding to many of today’s economic drivers. While there remains a lot of chatter in the industry about the use of Artificial Intelligence (AI), for a variety of business uses, we must not forget that AI doesn’t exist without the actual data. If inaccurate data is used for AI systems, outcomes detrimental to any organization’s business strategy will follow.
