Rising Costs and Geopolitical Uncertainty Create Perfect Storm for Fleet Managers
2025 has arrived, and with it, a multitude of challenges for businesses, says leading tyre and service provider ATS Euromaster. Fleet managers, in particular, are facing a squeeze on Service Maintenance and Repair (SMR) budgets thanks to a combination of inflationary pressures, supply chain disruptions, and the ongoing push for zero-emission vehicles.
Inflation Bites into SMR Spending
The cost of everything from labour to parts is on the rise, putting the squeeze on already tight fleet budgets. ATS Euromaster reports seeing a concerning trend of fleets cutting back on essential maintenance, such as brake replacements, to cope with rising costs.
“Brakes are just as critical as tyres when it comes to road safety,” warns Mark Holland, Operations Director at ATS Euromaster. “But unlike worn tyres, brake issues aren’t always immediately obvious. Fleet managers need to be extra vigilant about safety inspections when running on a tighter SMR schedule.”
Budget Tyres: A False Economy?
Another worrying sign is the shift towards budget tyres. While cheaper upfront, these may not offer the same lifespan or performance as premium brands, potentially leading to more frequent replacements and increased downtime in the long run.
“Sacrificing safety for a reduced SMR spend is simply not an option. Fleet managers need to carefully assess the suitability of budget tyres and maintain a rigorous maintenance schedule if opting for this strategy.”
Mark Holland, Operations Director at ATS Euromaster
Proactive Strategies for Navigating 2025
To weather the storm, ATS Euromaster recommends fleet managers take a proactive approach:
- Regular Inspections: Preventative maintenance is key to minimising costly vehicle off-road (VOR) time and unexpected repairs.
- Embrace Technology: Telematics and data analytics can help predict potential failures and optimize maintenance schedules.
- Driver Training: Investing in driver training can reduce wear and tear on vehicles and lower the risk of accidents.
- Whole Life Cost Analysis: Don’t just focus on the initial price tag. Consider the long-term costs and benefits when making SMR decisions.
Geopolitical Tensions Add to the Uncertainty
The ongoing instability in the Middle East, coupled with lingering supply chain issues, further complicates the picture. Disruptions to shipping routes and potential semiconductor shortages could impact vehicle availability and maintenance costs.
“We may see a continuation of extended vehicle lifecycles,” notes Holland. “This means maintaining older, more complex vehicles, which presents its own set of challenges.”
The Bottom Line
2025 is shaping up to be a challenging year for fleet managers. By taking a proactive, strategic approach to SMR, businesses can mitigate risks, control costs, and ensure the safety and efficiency of their fleets.
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