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2020 Australian Fleet Trends Report unveils trends on driver behaviour
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recent Australia-wide study conducted by ACA Research and 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 study 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 conduct their business in an informal manner, 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 and New Zealand.
employee behaviour. This included the use of company vehicles for personal work, fraudulent use of fuel cards and the accuracy of timesheets .
Driver Behaviour Even before Australian fleet managers were forced to run their operations from their homes, 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
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%) .
Fuel Usage Unsurprisingly, the volatility of fuel prices was tagged as a significant business concern in more than three-quarters 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) 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 under claim 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 which continue to face difficulties due to the lack of internal resources and knowhow.
VALE – Ray Scott Our condolences and deepest sympathy to Ray’s wife Jill and their family on the sad passing of industry icon Ray Scott. Ray Scott played a significant role in the trucking industry, from humble beginnings his father’s family business, through to becoming a major shareholder in Scott Group of Companies, including the K&S Corporation. In 2013, Mr Scott was inducted into the National Road Transport Hall of Fame, recognising his history in the road transport industry and long service on road train work into the Northern Territory. Mr Scott was well-known for his kind nature and always willing to help those in need.
Preferred proponent chosen for $852 million Bunbury Outer Ring Road project
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he Southwest Connex consortium has been named the preferred proponent to design and construct the Bunbury Outer Ring Road, the biggest regional infrastructure project ever undertaken in Western Australia. The consortium, comprising Acciona, local WA company NRW Contracting, MACA Civil, AECOM and Aurecon will now enter into negotiations with Main Roads prior to the contract award anticipated in September. Construction on the $852 million project will begin early next year, subject to environmental and heritage approvals and is estimated to create thousands of local jobs. Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said
Given that local businesses and contractors are struggling to recover from the COVID-19 pandemic, the prioritisation of this road project and local procurement are critical to the South West this was just one of the major infrastructure projects planned for the South West region. "The Bunbury Outer Ring Road project has been planned for a number of years, recognising the significance of delivering vital infrastructure to provide a safer and more efficient road system for the South West of Western Australia," Mr McCormack said. "Bunbury Outer Ring Road will provide relief for local residents by removing freight and regional traffic from local roads while maintaining easy access to Bunbury and other regional destinations. Federal Member for Forrest Nola Marino MP, who worked on securing Federal funding for this project for years, said the Bunbury Outer Ring Road is a well-planned infrastructure project supporting the growth and development of the region. "I'm determined to see as much local South West procurement involved in the construction of this project as possible," Ms Marino said. "Given that local businesses and contractors are struggling to recover from the COVID-19 pandemic, the prioritisation of this road project and local procurement are critical to the South West." WATM • September 2020
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