Fleets warned as maintenance budgets face squeeze in 2025
Inflationary pressures are driving up the cost of labour, parts, and materials, making Service Maintenance and Repair (SMR) more expensive in 2025, according to ATS Euromaster, a leading tyre and service provider in the UK.
The company says this comes at a time when fleet budgets are already under pressure, and warns it has already seen the impact of this as fleets squeeze maintenance programmes.
It is advising fleet managers to be proactive in their approach to fleet inspections and management to minimise costly repairs – the same can be applied to fleets here in Ireland. Whilst maintenance costs require budget, they keep vehicles on the road and earning.
Mark Holland, operations director at ATS Euromaster said: “Across the market fleets are not spending on SMR to the same level. Everyone seems to be tightening their belts with brakes given lower change rates, for example. Brakes are as important as the contact points on the road but the visibility of such safety items – unlike worn tyres – is not immediately obvious.
“So, then it comes down to timing and how fleet managers can ensure drivers in their vehicles are safe. If you’re running a tighter SMR schedule, how do you know everything is safe? It’s a significant question for fleet managers.”
Holland says another sign that SMR budgets are being squeezed for 2025 is the de-tiering in tyre brand policy for some businesses. Budget tyres will help ease pressures on SMR budgets in the short term but may not provide the same level of in-life longevity and require changing more often.
“Again, we would urge fleet managers to ensure they have a firm grip on their fleet’s general maintenance if tyres are being run for longer or budget tyres are on the agenda, then make sure they are appropriate,” he added. “Sacrificing safety for a reduced SMR spend is a no-go zone.”
ATS Euromaster also highlights how political instability in the Middle East may well have an impact on economic performance across the globe into 2025. Houthi rebel attacks on ships disrupted trade earlier in 2024, which has increased nervousness around these trade channels, heightened by tensions around use of the important Suez Canal. Further destabilisation in the Middle East could lead to significant supply issues as ships travel further to avoid the troubled area.
What’s more the semiconductor shortages are improving but they have not gone away completely: some industry analysts predict it could persist in certain sectors into 2025 and beyond. Automotive chips, especially those for advanced features, might still be constrained.
Lingering supply chain issues may also continue to affect fleets, particularly if ICE vehicle supply is constrained in favour of electric vehicles to meet enhanced ZEV requirements.
“The likelihood is that we may see a continuation of extended vehicle lifecycles,” continued Holland. “Some fleets are already comfortable with this, but for other fleets it means a requirement for more maintenance needs. Modern vehicles are increasingly complex, with more electronics and sophisticated components. Maintaining older vehicles with these technologies can be challenging.”