Surging fuel costs, inflation impacting fleets - Verizon Business report

Rhea-AI Summary

Verizon Business released findings from its 2023 Fleet Technology Trends Report, highlighting how GPS fleet tracking technology helps manage rising costs and enhance customer service. Conducted across 14 countries with over 2,300 respondents, 73% cited rising costs as a key challenge. The technology has enabled 70% of fleet managers in EMEA and 55% in Australia/New Zealand to improve customer service. Additionally, users reported a 46% decrease in fuel consumption and accidents, contributing to a 20% reduction in global labor costs.

Positive

• 70% of fleet managers in EMEA reported improved customer service due to GPS fleet tracking.
• 46% reduction in fuel consumption and accident costs reported by businesses using fleet tracking solutions.
• 20% decrease in global labor costs, with Australia and New Zealand seeing up to 28% savings.

Negative

• 73% of respondents cited rising costs as a significant challenge.
• Labor shortages affected 59% of US respondents, impacting fleet operations.

Global findings highlight that, despite business uncertainty, GPS fleet tracking technology helps fleets meet customer demands, offset rising costs and protect against accidents

NEW YORK, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Verizon Business today released survey findings from its annual Fleet Technology Trends Report, conducted separately by Bobit (US) and ABI Research (EMEA and APAC). With responses from more than 2,300 fleet managers, executives and other mobile business professionals across 14 countries, the data emphasizes that technology adoption is helping fleets navigate operational obstacles to drive results and build resilience.

“In today’s hyper-connected and complex world, fleet technology is being leveraged as a stabilizing force amid the many intensifying business challenges,” said Peter Mitchell, senior vice president and general manager, Verizon Connect. “At Verizon, our goal is to be a true partner to our customers and help them uncover hidden costs while promoting safety. We help them streamline business operations so they can stay focused on driving greater productivity and efficiency to improve their business and overall customer experience.”

State of the Industry 4.0 — Strength in Technology

With strained budgets and resources, many fleets may find it difficult to maintain operations as they are, let alone improve them. Increasing costs (73%), such as higher prices for fuel, cost of living and inflation, were reported as the big challenge worldwide in this year’s report. In the US, this was followed by labor shortages (59%) and meeting customer demand (52%)—all of which grew steadily year over year.

In EMEA and APAC, respondents believe customer service will have the biggest impact in the near future to help improve customer retention and satisfaction. Already, fleet tracking solutions have helped 70% of survey respondents improve their customer service in EMEA, while 55% of survey respondents in Australia and New Zealand reported improved customer service since they implemented a fleet tracking solution.

Boosting Customer Service, Productivity and Maintenance

While current challenges won’t be resolved overnight, focusing on the factors within a fleet’s control can help calm the chaos. Fleet management technology is already being seen as a powerful tool that equips fleets with the data they need to make better decisions, navigate challenges and help improve fleet performance. In fact, 85% of respondents globally who are currently using fleet tracking software reported finding it to be helpful.

Effective route planning is critical in making efficient use of fuel, as well as reducing overall operating costs. In 2022, nearly half of businesses were able to reduce their fuel consumption (46%) and accidents (46%) through the use of GPS fleet tracking solutions, reporting an average 11% decrease in fuel costs and 15% reduction in accident costs. Global labor costs were also reduced by 20%, with Australia and New Zealand realizing the biggest impact at 28% savings.

Asset tracking is also being recognized for its ability to empower safety, equipment utilization and team productivity, with 65% of respondents currently using asset tracking considering the tool beneficial. In the US, adoption of asset tracking rose by 6% (up to 29% this year)—seeing the highest percentage increase of new users over other technologies.

Seemingly, building a resilient business is more important now than ever before. Fleet tracking technology goes beyond just dots on a map. It gives fleet managers much-needed visibility into driver behaviors, fleet costs and vehicle wear and tear. The Verizon Connect platform gives users the visibility they need to get more done. With dashboards and customizable reports, managers can check the pulse of their business at any point in time.

To see the full report findings, visit the 2023 Fleet Technology Trends Report page. To better facilitate access to the Fleet Technology Trends Reports for EMEA and APAC in the local region and language, please see these country-specific options:

• Europe: Austria, Germany, Belgium, Netherlands, France, Spain, Ireland, United Kingdom, Italy, Poland, Portugal
• APAC: Australia, New Zealand

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $133.6 billion in 2021. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Erin Cheever
erin.dowling@verizon.com

FAQ

What are the key findings of the 2023 Fleet Technology Trends Report by Verizon?

The report highlights that GPS fleet tracking technology helps improve customer service and reduce operational costs amidst rising expenses.

How has GPS fleet tracking technology impacted customer service according to Verizon's report?

70% of fleet managers in EMEA and 55% in Australia/New Zealand noted improvements in customer service due to GPS fleet tracking technology.

What challenges do fleet managers face according to Verizon's 2023 report?

73% of fleet managers reported rising costs, 59% faced labor shortages, and 52% mentioned difficulty in meeting customer demand.

What cost reductions were reported by businesses using fleet tracking solutions?

Businesses reported a 46% decrease in fuel consumption and accidents, along with a 20% reduction in global labor costs.