By Rob Wilson – Director IPWEA FLEET
Approaching the Finishing Line
As we approach the finish line for 2021, it’s an interesting time to think about the extraordinary last couple of years and what might lay ahead.
Some pundits are expecting supply side issues to continue through 2022 and into 2023 driving up pricing and extending lead times (well, at least residual values are up as well!). It’s not just the lack of supply of microchips and the residual effects of COVID related shutdowns that are the issue. It’s also about dealing with transport capacity (especially for somewhere as remote as Australia) and the backlog in demand from the last couple of years that will continue to drive scarcity of supply. For those extending the useful lives of their assets it will be interesting to think about what impact this will have on maintenance and repair costs and downtime.
Fleet managers are also likely to have to deal with broader financial impacts beyond increased purchase prices and ongoing budget pressures. Financing costs are likely to rise if inflation in the USA is any indication. Australia’s GDP was up in 2021 and other indicators such as the employment rate and expected wage growth have some commentators expecting the RBA to increase rates in late 2022.
Whatever happens in 2022 it is likely that everyone in the fleet industry will be busy and new challenges will present that need to be worked through.
The IPWEA Australasian Fleet Conference will be run in Brisbane 28-30 March 2022 and will focus on Leading Fleet Management Through Change. Registration is now open, and we look forward to getting back together face to face at this major fleet event. Register now for super early bird pricing.
For those looking to improve their fleet management arrangements we have recently expanded and enhanced our Fleet Management Health Check with a new online portal so that the whole process is simpler and faster. You can also package the Fleet Management Health Check with an Improvement Mentoring and Monitoring program as part of our Professional Services packages. The Health Check and Mentoring package is great way to set and deliver your improvement priorities for 2022.
Finally, from IPWEA and the whole Fleet Team, have a happy and safe Christmas and a great start to 2022!