What challenges could 2023 bring for the fleet industry

With 2022 being a turbulent year for the fleet industry, it is predicted that many of the challenges are likely to persist in 2023, adding further uncertainty to the market.

Here we look at some of the challenges that fleets are likely to face, and what actions can be taken to minimise the impacts.

As emission regulations continue to tighten, the focus of many fleets is the switch to electrification. However, trying to move towards emission reduction goals whilst controlling costs can be a concern for businesses.

The rise in electricity prices is also another obstacle leaving some decision makers questioning the affordability of EVs.

In our article ‘Is switching to an EV cost-effective?’ we look into addressing these concerns.

The UK’s charging infrastructure has significantly improved over the past few years, however, range anxiety and charging still list as barriers and reasons why some companies have not yet adopted any electric vehicles.

Visit our EV Hub, to find out more information about EVs, charging infrastructure, funding and legislation, as well as our interactive tools and resources to help decide if an EV is right for you.

The shortage of HGV drivers still remains high despite the government’s efforts to help train new drivers, increase the number of HGV driving tests and encourage former drivers to return to driving.

The supply chain depends heavily upon drivers worldwide so for many fleet managers this would be a main concern and top priority.

It’s important that fleets don’t only focus on recruitment but also concentrate on creating a better logistics efficiency with the help of telematics and utilising the drivers they have.

According to experts, the vehicle delivery challenges are likely to remain for the whole of 2023. Many fleets will again be forced to continue operating vehicles past their normal trade cycles, which can lead to service, maintenance and repair (SMR) costs increasing.

We have recently shared an article which outlines a number of tips provided by our Commercial Vehicle Specialist, Kellie Davis, to help fleets keep the SRM costs under control.

The oncoming recession is another big concern to fleet operations. Fleet managers will be expected to deliver more value than ever whilst trying to move forward with reducing the carbon emission on their fleets, facing the electrification challenges combined with the limited vehicle supply and longer lead times.

The fuel prices add extra pressure to the fleets. Last year, they have reached new high records. Ever since the Russia’s invasion of Ukraine, the price of diesel and petrol continually grown, with diesel reaching a peak of £196.4 pence per litter in June 2022, up by nearly 48% compared to June 2021.

Although the fuel prices remain high, they have fallen in the past few months.

  • Fuel Duty increase

According to the Office of Budget Responsibility (OBR), petrol and diesel duty rates are set to rise in line with RPI inflation in the Spring. Fleets could be hit with a 23% hike, which will have a detrimental effect on the industry. In March last year, fuel duty was cut by 5pp after being frozen at 57.95ppl since 2011. The reduction was a temporary measure due to the record pump prices at the start of 2022.

Take a look at our article aimed to help drivers improve their fuel efficiency, as well as, the answers to the FAQs about fuel.