$8.2 Billion in Aftermarket Repair
If you’re not selling to light vehicle fleets then you’re overlooking more than $8 Billion in annual aftermarket repair.
Did you know that...
- In 2010, light vehicle fleet maintenance facilities performed over $8 Billion in aftermarket repair while sourcing over $5 Billion in aftermarket parts?
- Light vehicle fleets control almost 10 million passenger cars, light trucks, SUVs and crossover vehicles?*
- 1,772,497 cars and light trucks, or 18% of all 2010 new vehicle sales, went to fleets?*
- 12,481 fleet maintenance facilities employ 64,645 repair technicians working in 77,382 service bays?
- More than 70% of those fleet repair technicians are ASE certified?
*source: RL Polk
If you find these numbers surprising then you haven’t been keeping up with the dramatic changes that have been sweeping through
light vehicle fleet maintenance.
The last ten years have brought about significant changes in the way fleets handle the maintenance of their vehicles. Historically fleets had a “Burn and Turn” approach to their vehicles. Fleets would purchase vehicles, run them hard with only basic maintenance, and then sell them into the used vehicle market. But a number of factors have led to a “sea change” in fleet maintenance:
- New vehicle acquisition costs have risen to the point that they are consuming an increasing percentage of the fleet’s total budget. This has forced fleets to keep those vehicles longer and thus lengthen the time between vehicle replacements.
- Vehicle build quality has improved to the point that fleets are now able to keep their vehicles in operation at far higher mileage than was previously possible.
- The overall weak economy has forced everyone to do more with less and fleets are no exception.
These factors, and more, have caused dramatic growth in the number and size of captive fleet maintenance facilities. Service and repair work that had previously been out-sourced to car dealers and independent repair shops have been in-sourced during the last ten years.
With this increased captive fleet service has come a corresponding increase in in-house parts operations. “Government Fleet” one of ASP’s sister magazines recently published an article discussing the pros and cons of in-house vs. outsourced fleet parts operations. It's a highly informative read. Click here
to read the article as it will give you a much better idea of how fleets handle their parts sourcing.
Auto Service Professional is The Only Repair Publication Distributed to
All 12,481 Light Vehicle Fleet Maintenance Facilities.