“A significant lack of communication between fleet operations and finance departments” within the US trucking industry is hampering fleet upgrades and modernization, according to a survey issued by Fleet Advantage, an industry analyst.
The survey found the following:
- 18.8% of private fleet management executives say finance officers don’t understand how newer trucks can reduce driver turnover and improve retention. This item is critical, particularly as driver shortage and turnover rates continue to grow. According to the American Trucking Association’s Trucking Activity Report, the annualized turnover rate at large truckload carriers, those with more than $30 million in annual revenue, increased six points to 94%. The turnover rate for smaller carriers fell to 73% but was still seven points higher than the previous year.
- Finance officers are unclear about the role proper fleet acquisition strategies and lease versus purchase decisions play on a company’s bottom line, which is why only 25% of operations management believe this area is a concern for finance departments.
- 37.5% of fleet executives cited the inability of their finance departments to clearly communicate the company’s financial metrics and goals to the operations department as the largest communications struggle. An additional 34.4% said finance doesn’t understand the benefit of investing in newer equipment; and 31.3% said finance doesn’t understand various operating costs associated with the fleet.