Author: ABS Tag and Title

Posted on

Addressing These THREE Risks May Help Maintain the Life of Your Fleet!

Risk management is key to getting the most out of your fleet.  Let’s explore three risks that affect the performance of your fleet.

  1. Theft.
    It’s quite possible to put significant time and money into protecting your cargo and overlooking the potential greatest loss to your business…the vehicle itself!  Auto theft remains a tremendous problem in the United States.  An analysis of data from the National Crime Information Center (NCIC) by the National Insurance Crime Bureau  (NICB) shows almost two vehicles being stolen every minute in 2022.It’s critical to ensure that vital auto parts are protected as well.  From 2019 to 2021 catalytic converter theft  jumped over 1,200 percent!Research and invest in the best safeguards to protect your fleet.
  2. Distracted driving.
    Distracted driving accounts for over 3,000 deaths on the road each year! Driving can be impaired by alcohol, drugs, sleep aids, lack of sleep, texting, or anything else that diverts the driver’s attention from the road.Do you see signs of aggression when any of your drivers are behind the wheel?  Be careful to vet your drivers thoroughly and implement an ongoing training program.  Addressing these issues through appropriate monitoring and training will save not only your property, but the lives of those entrusted with it.
  1. Improper vehicle maintenance.
    The safety of your drivers is largely dependent on the safety of your fleet vehicles. Every breakdown affects the bottom line.  Improper vehicle maintenance can result in accidents and may result in fines and lawsuits.  Invest in fleet management programs to keep track of maintenance needs and reporting requirements.

Technology is one of the best tools available to mitigate risks to your fleet.  Technology has transformed fleet management.  Strengthen your overall business operations with fleet management programs and services designed to keep your fleet compliant and on the road.

Posted on

Three Fleet Management Challenges

Three Fleet Management Challenges

 

The fleet manager’s job is integral to the profitability of any company. The job is complex, multi-faceted and requires a seamless set of processes and tools to manage the fleet efficiently and safely. Effective use of technology and strategic partnerships with fleet management vendors is integral to the success of any fleet management program.

Every step of the fleet management process presents a unique set of issues – from purchasing to compliance. Once a vehicle is purchased, many challenges await the fleet manager. Here are three:

FUEL COSTS:  Managing fuel costs is essential to maintaining profitability. Most fleets allocate about 35% of their ongoing operating costs to fuel. Increased gas prices have forced drivers and fleet managers to work toward finding the lowest rates and most economical driving options. These options include various purchasing protocols (i.e., purchasing wholesale, using fuel cards, etc.) and developing driving routes that efficiently utilize every drop of fuel.

SAFETY:  Even under the most excellent supervised training, accidents do happen. The fleet manager must have a safety program in place that encompasses many factors from training to maintaining accurate driver files. This not only helps with safety, it ensures that a company meets the next challenge of compliance.

COMPLIANCE:  Compliance is key. Non-compliant assets cannot be on the road. Lost time equals lost profits. The challenges keep growing as local, state, and federal authorities enact legislation and impose additional requirements to keep the company’s assets compliant. This is where strategic partnerships with fleet management vendors can help. They focus on keeping track of all the changes while the fleet manager focuses on the day-to-day operation of the fleet.

Fuel costs, safety, and compliance cover just a fraction of the challenges a fleet manager faces every day. Explore how the ABS Fleet Division can help. Contact us today.

Posted on

Women are Making their Mark in Fleet Management

Women In Fleet Management (WIFM) gets much of the credit for the achievements of women in the fleet management industry.  Through the development resources it offers and networking and mentoring opportunities, WIFM members have seen a world of change in the last two or three decades.   Sue Miller remembers her first days in fleet management this way: “It was definitely the good old boys club.  A lot of cigars, martini lunches, and that type of thing.”  Miller went on to direct a 3,500-vehicle fleet for McDonald’s and currently serves as senior fleet account manager of a telematics company, Geotab.  She served as one of the founders of WIFM, whose mission is “To provide a resource for women fleet leaders that encourages personal and career fulfillment through mentoring, fleet expertise sharing, fleet and business community involvement and networking.” (Explore WIFM and the many resources it provides here.)

WIFM will be one of the many representatives in this year’s WBENC Conference (Women’s Business Enterprise National Council), scheduled for March 20-23, 2023, in Nashville, TN.  This conference offers a premier opportunity for women to network with other business owners, receive tools and resources to develop as business-owners, and pitch their businesses to professional and government representatives.  (To find out more about the WBENC and to register for the conference, click here.)

The fight for equality of opportunities and pay among women entrepreneurs is not over.  Bernadette Milito, co-chair of this year’s WBENC Conference, puts it very directly, “The answers are simple.  It’s the work that’s hard.”  Milito sees the conference as a unique opportunity to connect business owners and corporate executives.  She is also dedicated to sharing her vast expertise in all aspects of the hard work it has taken for her to become CEO of CSS Building Services.

For decades women have been fighting for equal job opportunities, and it looks like that incredibly hard work is paying off.  The WBENC Conference will be an exciting celebration of the achievements of women business owners while providing resources for continued success for years to come!

The WBENC conference will be held March 20-23, 2023, at the Gaylord Opryland in Nashville.  Onsite registration will remain available throughout the conference.

Posted on

Increased Lithium Prices Impact EV Battery Prices

[bt_section layout=”boxed” top_spaced=”topSmallSpaced” bottom_spaced=”not-spaced” skin=”inherit” full_screen=”no” vertical_align=”inherit” divider=”no” back_image=”” back_color=”” back_overlay=”” back_video=”” video_settings=”” back_video_mp4=”” back_video_ogg=”” back_video_webm=”” parallax=”” parallax_offset=”” animation=”” animation_back=”” animation_impress=”” el_id=”” el_class=”” el_style=””][bt_row][bt_column width=”1/1″][bt_text] As the demand for electric vehicles (EVs) increases, it is important to keep in mind how this impacts the supply chain – especially as it relates to the cost of lithium batteries. The increased demand for lithium across multiple sectors, has caused a significant increase in lithium prices. In a tweet last year, Tesla’s CEO, Elon Musk, commented that lithium prices have reached “insane levels.“ [/bt_text][bt_hr top_spaced=”topSmallSpaced” bottom_spaced=”not-spaced” transparent_border=”noBorder” el_class=”” el_style=””][/bt_hr][bt_row_inner cell_spacing=”” el_class=”” el_style=””][bt_column_inner width=”1/1″][bt_text]
“Price of lithium has gone to insane levels! Tesla might actually have to get into the mining & refining directly at scale, unless costs improve. There is no shortage of the element itself, as lithium is almost everywhere on Earth, but pace of extraction/refinement is slow.” – Elon Musk
[/bt_text][/bt_column_inner][/bt_row_inner][/bt_column][/bt_row][/bt_section][bt_section layout=”boxed” top_spaced=”topSmallSpaced” bottom_spaced=”not-spaced” skin=”inherit” full_screen=”no” vertical_align=”inherit” divider=”no” back_image=”” back_color=”” back_overlay=”” back_video=”” video_settings=”” back_video_mp4=”” back_video_ogg=”” back_video_webm=”” parallax=”” parallax_offset=”” animation=”” animation_back=”” animation_impress=”” el_id=”” el_class=”” el_style=””][bt_row][bt_column width=”1/1″][bt_text] This increase affects the price of EV batteries, with recent estimates ranging from $2,500 to $20,000, depending on the car model. According to a  report by the McKinsey & Company Battery Insights team, the demand for lithium batteries is expected to increase 30 percent annually. How this affects pricing remains to be seen as companies work to resolve global supply and manufacturing issues. We’ll explore additional issues affecting the EV manufacturing process in future posts. [/bt_text][/bt_column][/bt_row][/bt_section]
Posted on

YES or NO to EVs?

Now’s the time to make a HUGE fleet decision!

It is anticipated that by the year 2040, Electric Vehicles (EVs) will comprise over half of new car sales. Some of the unique challenges this brings are being aggressively addressed, with a targeted effort to drastically increase the number of charging stations nationwide (click here for details). In addition, car manufactures are frantically developing more EV models to meet the predicted need. So now’s the time….fleet managers must make a final call on whether or not they will be making the transition.

With the heavy strain of extreme miles that your fleet carries, it may seem obvious that EVs are the way to go:  batteries last over 100,000 miles, moving parts are simplified, and electricity is one third the cost of gas. But there are some other details to consider:

EVs aren’t good for the long haul; at least not currently. However, if your fleet is used for last-mile deliveries, reduced maintenance and the price of electricity should be strong motivators.  Experts predict that if you make the transition to electric now, you will see immediate increases in your bottom line.

If you do pursue the switch to EVs, be sure all your drivers are equipped with an app to help find the closest charging stations while on the road. Infrastructure continues to be the greatest complaint of EV drivers, so these apps eliminate some of the frustration. PlugShare and ChargeHub are a couple of popular ones!

In this day of extreme technological advancement in vehicles, companies such as EverCharge  are rising up to meet the EV management needs of fleet managers and improve the capacity of charging stations. This company also performs site assessment and develops a smooth transition plan that is specific to the needs of each customer.

If the EV world still seems a little too much like the world of the Jetson’s, you’re not alone. This technology is fast and furious, but it’s a world that affects absolutely every one of us. Whether or not you will transition to Electric Vehicles is the question that every fleet needs to assess. If yours needs to be overhauled, make it a priority and start one vehicle at a time. Experts all agree that this world is here to stay.

Posted on

Electric Vehicle Provisions in the Inflation Reduction Act of 2022

 

The Inflation Reduction Act of 2022 (IRA) was signed into law on August 16, 2022 (Public Law 117-169).  The law amends and repeals sections of the Internal Revenue Code of 1986 (Public Law 99-514) as it relates to tax credits for electric vehicle (EV) purchases.

The law extends and expands tax credits for EVs purchased after December 31, 2022.  Tax credits are available through December 31, 2032.

Purchasers may claim up to $7,500 per vehicle provided that specific requirements are met.  Requirements differ for individual and commercial purchases.  The gross vehicle weight for all purchases must be less than 14,000 pounds.

The extension and expansion are welcome news for renewable energy proponents; however, it is important to note that qualifying for the credit is a bit more complex.  New requirements were included to encourage production in North America.

For non-commercial purchases, income limits apply.  Income for joint filers cannot exceed $300,000; head of household, $225,000; and other taxpayers, $150,000.  The manufacturer’s suggested retail price (MSRP) cannot exceed $80,000 for vans, sport utility vehicles, and pickup trucks.  Other vehicles are limited to $55,000.  Batteries for EVs must meet composition requirements and minerals used in the production of batteries must meet specific requirements.  Final assembly must occur in North America and any taxpayer claiming the credit must provide the Vehicle Identification Number (VIN) to the Internal Revenue Service.

Requirements for commercial purchases differ in that final assembly need not occur in North America and the critical minerals and battery component specifications do not apply.  The law expands the credit for commercial purchases to include mobile machinery.

Additional provisions include incentives for building electric charging stations and expanding eligibility for the credit to previously-owned EVs provided that an individual’s income does not exceed specific thresholds.  A mechanism is established to allow tax-exempt entities to claim the credit.

The United States Department of Treasury will issue regulations and guidance regarding implementation of the law’s provisions, and to clarify the applicability of the credit.

Posted on

FMCSA Denies Intellistop Exemption

Intellistop loses battle with FMCSA

 

The Federal Motor Carrier Safety Administration (FMCSA) denied Intellistop, Inc.’s (Intellistop) application for an exemption to Section 393.25(e) of the Federal Motor Carrier Safety Regulations (FMCSRs). This regulation requires all brake lamps to be steady-burning.

Intellistop requested a five-year exemption applicable to all commercial motor vehicles (CMVs) to allow for the use of its braking module.  When brakes are applied, the module “…pulses the preexisting brake, clearance and I.D. lamp…” for two seconds before returning to a steady-burning state.

Intellistop’s President, Michelle Hanby, emphasized that in the event of failure, “…the brake, clearance, and I.D. lamps will default to normal OEM function and illumination.”

Intellistop asserts that the module “…would allow commercial carriers to not only maintain operational safety levels, but also implement more efficient and effective operations.”  Intellistop referenced research conducted by the National Highway Transportation Safety Administration (NHTSA) in 2009 that concluded “…rear lighting continues to look promising as a means of reducing the number and severity of rear-end crashes.”

Intellistop noted that exemptions have been granted to National Tank Truck Carriers Inc. (NTTC) and Grote Industries, LLC.  NTTC’s exemption allows for the installation of red or amber brake-activated pulsating lamps.  The Grote exemption allows for the installation of amber brake-activated pulsating warning lamps.  In both cases, the exemption is limited to five years and all pulsating devices must be used in conjunction with steady-burning brake lamps.

FMCSA has the authority to grant exemptions if it provides “… a level of safety that is equivalent to, or greater than, the level that would be achieved absent the exemption.”  This standard is established in 49 U.S.C. 31136(e) and 49 U.S.C. 31315(b).

FMSCA determined that Intellistop’s module did not meet this standard and felt the request for an industry-wide exemption was too broad.

FMCSA noted the lack of relevant research to support Intellistop’s request and the absence of specific data about the operational features of the device.

In addition, “…Intellistop’s application seeks to alter the performance of the FMVSS-required lighting device on all CMVs rather than adding additional pulsating lights.” This differs from the exemptions granted to NTTC and Grote Industries, LLC in that the original equipment is not altered.

Despite the denial, any CMV can seek an exemption to “…purchase, install, and use Intellistop’s device…” by submitting an application and complying with the “…terms and conditions of an exemption.”

In response to the denial, Intellistop filed suit in the U.S. Court of Appeals on October 7, 2022, requesting a review of the decision.  Initial statements were due to the court on November 7, 2022. As we learn more details we’ll be sure to provide updates.

Please take a moment to review your experience with us by leaving us a review!

Posted on

Managing Your Fleet Through Rising Fuel Costs

 

Over thirty percent of your fleet costs go directly into the gas pump, so your fuel investment needs to be managed very intentionally! Although we’ve seen a recent dip in gas prices, they are expected to fluctuate for some time, due to record high inflation. In order to manage fleets well, it’s imperative to not only cut back as much as is feasible, but wisely plan for how increased prices will affect businesses long term:

  • The obvious place to start (albeit the most severe expenditure) is to consider the fuel economy of your fleet and start transitioning if there is at all a possibility. It’s time to explore electric or hybrid as you replace your vehicles. 82% of all fleet owners are on their way to completely electronic vehicles, and it is proving to be the wiser economic option.
  • Go as LOW as you can go! Research the lowest prices for the recommended fuel grade for your fleet according to the OEM (Original Equipment Manager) and require all drivers to stick to them. Resources like GasBuddy allow you to find the lowest prices for gas in your driving area. You can’t control the increase of gas prices, but you can control unnecessary spending.
  • Beware of theft! As fuel prices increase, so does fuel theft! Be on the lookout for fraud (irregular fill-ups, a card being used when the vehicle is not present, etc.). Fluctuating gas prices make this harder to detect, so it’s more essential than ever that you know your fleet and watch carefully.
  • Believe it or not, driving on smooth roads can have an impact on fuel efficiency. It’s not always feasible to drive on the best roads, but your drivers can avoid uneven roads as much as possible.
  • Set speed restrictions for your drivers. Excessive speeds wastes fuel, not to mention it can be potentially dangerous. According to a study by the University of Michigan Transportation Research Institute, driving at high speeds can reduce fuel efficiency by up to 30%.

Rising gas prices do not need to mean a loss of profits. ABS is committed to providing resources for optimum business success and our staff is eager to support businesses through this challenging time!

Posted on

Innovative Ways to Muddle Through a Vehicle Shortage

Vehicles are in very short supply and fleet managers nationwide are agreeing on one thing: work with what you’ve got for as long as you can! Experts are suggesting it’s time for fleet managers to get very creative, because this shortage is anticipated to potentially stick around through 2024.

In 2021, there were between 1.5 million and 5 million fewer vehicles produced than the industry anticipated. Steady increase in inflation and continued supply chain issues hit the industry very hard, and fleet managers now must consider a completely new mentality in the way they do business. Advisors in the industry are suggesting the following:

  • If there’s any way to do it, cut back on your fleet now and save.
  • This seems counterintuitive to #1, but before you downsize, make certain that you will never need the vehicle in the future. The climate is not expected to improve for some time. If it will not cause sure and immediate savings, hang on.
  • As you are deciding fleet needs, transition to electric vehicles more quickly. EV’s are holding up very well in the industry, and they’re here to stay. Investing in diesel will be a quick economic loss from this point on.
  • Preventive maintenance has never been more essential as fleet managers are needing to extend the life of their vehicles. The cost of parts has increased considerably, so stay ahead of those repairs by caring meticulously for your cars and trucks!
  • Think outside the box. Meeting the needs of your customers comes first and foremost. Suggest alternate vehicles if your typical fleet is in short supply, consider the benefits of buying used vehicles, and some managers are even buying new and using the parts to service their entire existent fleet!

The vehicle shortage has brought obvious challenges to this industry. But ABS Tag & Title’s Out of Stock Vehicle Locating Services can still be a great way to source new or used vehicles when you find yourself in need. Working together we can make the most of these challenges.

Posted on

Preparing Your Fleet for Summer Heat

Prepare your fleet vehicles for the heat of summer.

You would never think of running five miles in 100-degree heat without taking a water bottle and extra precautions to fight the summer temps. Your fleet is no different!

From top to bottom, front to back, it needs extra care to beat the heat.

In order to prevent overheating, it’s essential that all fluids are topped off before you start off on these long driving days. Radiator, antifreeze, transmission, brakes, even windshield wiper fluid will need special attention in order to keep your fleet healthy in this heat. As you’re driving, keep an eye on the water temperature or coolant temperature gauge. If it goes above a safe temp, you’re at risk of engine failure and need to get off the road immediately.

Summer heat is brutal to the life of batteries. They run excessively to maintain HVAC systems and other hot weather accessories, causing an increase in corrosion. Unfortunately, this quick aging may not be noticed until the cooler months arrive and your fleet doesn’t start up. Steven Keuss of Associated Equipment Corp says that for every 10 degree increase in temperature, the battery’s life is reduced by 50%.

Tires are especially at risk in hot weather, as there is always a risk of a tire blowing up or even catching on fire. Switch out your winter tires and check summer ones closely and regularly, making sure that they maintain proper tread and wear evenly. The pressure in your tires will increase with the temperature, and it’s recommended that you check them every two hours or 100 miles to maintain safety on the road.

Manually check your engine belts by pressing on them to make sure they are tight. If not, the water pump and fan will not run properly and result in overheating. Visually check for signs of wear and replace at the first sign of aging.

If your engine does overheat, immediately pull over, set your vehicle or rig in neutral and set the brakes, but do NOT shut down your engine. Keep the engine revved to 1500 RPMs to allow the fan to cool your engine. This will take at least 15 minutes, so be patient! Never open the radiator cap or any other pressurized system, as steam can cause severe burns. Once your engine has cooled, head to the service station.

Extra time and care of your fleet now will help to limit these service stops and get you back on the road quickly. We at ABS Tag & Title wish you a safe and healthy summer!