Geotab Industry Survey: 87% of transportation fleets anticipate rising business costs this year

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Apr 10, 2024, 08:00 ET

With 39% citing new vehicles as largest cost, Geotab examines how U.S. fleets prioritize sustainability in their business models, and the role of data in cost management

TORONTO, April 10, 2024 /PRNewswire/ - Geotab Inc. ("Geotab") — a global leader in connected transportation solutions — has conducted a survey of U.S. fleet professionals, with Bobit Research Group, that explores how organizations in the transportation sector are progressing on their sustainability plans, amid increasing pressure to address climate change.

The Double-Bottom Line: Balancing Growth with Environmental Responsibility

While business costs continue to rise, more large U.S. fleets are setting environmentally focused goals to align with customer preference and regulations, and to offset increasing expenses. The challenges for the industry are clear:

87% anticipate an increase in their business costs throughout 2024.
42% of fleet professionals believe customers will demand more fleet sustainability initiatives in the next 1-3 years in order to continue doing business with them.
39% indicate new vehicles as the largest portion of their costs, while 28% report vehicle maintenance, and 15% report fuel costs as the biggest driver of cost.

Harnessing Data Intelligence for Better Decision Making

Fleet managers are leveraging data insights, alongside the growing integration of AI models. Trusted data intelligence is enabling better decision making to improve fleet sustainability operations and performance, and improved cost management. The survey found that:

60% found data intelligence critical to reducing operational costs through better maintenance and scheduling.
31% are using data insights to measure and track sustainability progress.
41% found data intelligence useful to determine driving behavior that contributes to more sustainable practices, like reducing idling, route planning, and more.

"As fleet professionals execute ambitious sustainability goals, data intelligence and AI are driving decision-making and reporting which is driving business value," said Eric Mallia, Vice President, Sustainability Solutions, Geotab. "We're increasingly seeing more fleet operators embrace the cost-saving potential of measurable sustainability initiatives, delivering a "double-bottom line" of operational cost savings and a reduction in emissions."

Strong support structures are advancing sustainability

Fleet professionals are optimistic about the support structures in place and their ability to advance sustainable operations. Key findings include:

84% report company leadership that supports progress on sustainability goals.
68% report feeling adequately equipped with data intelligence tools.
67% feel positive about the availability of requisite training and education.

Year over year impact of data

Building upon prior findings, a comparative analysis with a survey from 2023 highlights the effectiveness of sustainability plans. A remarkable 69% of fleet managers who implemented these initiatives reported a significant decrease in operating expenses over the previous year. Last year, 54% of fleets surveyed already had EVs in their fleet or on order. As that transition continues, trusted data intelligence will be critical to the management of those vehicles, and to accelerate ROI.

"Sustainable fleet transformation includes switching to low- and zero- emission vehicles, and extends to adopting a measured approach that helps organizations optimize operations. Data is core to unlocking those insights– including reducing idling and instituting better routing and driving practices" said Charlotte Argue, Geotab's Senior Manager of Sustainable Mobility.

Advancing progress to net zero through data, research and partnerships

As part of its commitment to sustainability, Geotab shares knowledge and expertise, invests, and collaborates on projects to spark innovation and support efforts toward a low-carbon future. Learn more in the Geotab 2023 Sustainability and Impact Report.

©2024 Geotab Inc. All rights reserved. All trademarks property of their respective owners in Canada and other countries. Geotab, and the Geotab logo are trademarks and/or registered trademarks of Geotab Inc. and/or its affiliates.

About Geotab

Geotab is a global leader in connected transportation solutions. We provide telematics — vehicle and asset tracking — solutions to over 50,000 customers in 160 countries. For more than 20 years, we have invested in ground-breaking data research and innovation to enable partners and customers, including Fortune 500 and public sector organizations, to transform their fleets and operations. With over 4 million subscriptions and processing more than 75 billion data points a day, we help customers make better decisions, increase productivity, have safer fleets, and achieve their sustainability goals. Geotab's open platform and Marketplace, offers hundreds of third-party solution options. Backed by a team of industry leading data scientists and AI experts, Geotab is unlocking the power of data to understand real-time and predictive analytics — solving for today's challenges and tomorrow's world. To learn more, visit www.geotab.com, follow @GEOTAB on X and LinkedIn or visit the Geotab Blog.

SOURCE Geotab Inc.