2020 trends on driver behaviour

Arecent study commissioned by Verizon Connect has unveiled key challenges facing businesses with small to mid-sized vehicle fleets, around driver behaviour, fuel usage, fuel tax credits, and vehicle maintenance.

The Australia-wide study, conducted by ACA Research, includes views from over 200 Australian fleet executives operating in various industries including services, construction, production, retail, and education. A separate ACA research recently pegged Australia’s fleet numbers at around 2.5 million, dominated by small to midsize companies.

“The fleet business in Australia is growing rapidly and this has been exacerbated by the pandemic - we now view fleet businesses and their drivers as providing a critical service. However, as fleets grow, it becomes more difficult to oversee and control the utilisation of their assets. Many executives informally conduct their business, and it is now more timely than ever for businesses of any size to not only improve cost management but also look after the health and safety of a distributed workforce that is often at the coalface of the supply chain,” said Greg Newham, Head of Verizon Connect in Australia & New Zealand.

Driver Behaviour

The issue of trust and employee behaviour have dogged fleet businesses for years.

While trust was higher across larger fleet companies with more robust processes and policies, executives generally cited concerns over a lack of visibility over employee behaviour. This included the use of company vehicles for personal work, fraudulent use of fuel cards, and the accuracy of timesheets.

Fuel Usage

Unsurprisingly, the volatility of fuel prices was tagged as a significant business concern in more than threequarters of respondents. While fuel prices in Australia have seen recent historic lows, smaller businesses continued to be challenged by fuel price fluctuations - in the past 12-months, smaller businesses reported an average increase of 9%-12% in fuel costs.

Fuel Tax Credits (FTCs)

When Australian Road Services, a Queensland-based road construction company, found out that their trucks were regularly off the public road network, they realised annual cost

Other challenges flagged included increased maintenance costs arising from negligent drivers (77%)

savings of over $10,000 in FTCs. “We can’t always remember where that one truck was and what it was doing five days ago,” said the company’s fleet manager, Dave Watt.

Under the glare of an ever-changing complex regulatory environment, a number of executives outlined concerns around the accuracy of records potentially causing businesses to underclaim on their FTCs. With over 62% of Australia businesses currently claiming FTCs, around 38% of respondents indicated that they continue to struggle with complex data capture, validation, and stringent reporting requirements. Once again, it is smaller fleets that continue to face difficulties due to the lack of internal resources and know-how.

Vehicle Maintenance

Regardless of fleet size, managing vehicle maintenance was tagged as a challenge by the majority of respondents. Interestingly, larger fleet businesses reported struggling with tracking maintenance schedules and ensuring adequate replacements during maintenance works. Other challenges flagged included increased maintenance costs arising from negligent drivers (77%).

Preferred contractor named for Bussell Highway duplication

The Bussell Highway dual carriageway is a step closer, with Raubex Construction Pty Ltd named as the preferred contractor for the first stage between Capel Bypass and Hutton Road.

Fast-tracked to boost the economy post-COVID-19, the $85 million duplication project is expected to support more than 570 direct and indirect jobs during construction and provide opportunities for local businesses.

Works will commence on Stage One of the project in October and involve the construction of a five-kilometre section of carriageway, along with reconstruction works on an existing section of the highway, resulting in two lanes in each direction.

Stage One is expected to be completed by June 2021.

Plans for Stage Two are progressing and involve construction of the remaining 12-kilometre section between Hutton Road and Busselton, along with the duplication of three bridges over the Abba, Sabina, and Ludlow Rivers.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the Australian Government was partnering with the WA Government to fast-track regional shovel-ready projects to get money flowing into jobs and businesses as soon as possible while strengthening the economy in the long-run. "Our focus is getting people back into work quickly, which is why we allocated $1.5 billion to prioritise shovel-ready projects and targeted road safety works that can provide a boost to the economy and support jobs immediately," Mr McCormack said. "We are continuing to roll out major projects nationwide under our $100 billion infrastructure investment pipeline, laying