Changes in the Auto Industry Could Mean Challenges for Your Fleet

Regarding EV registrations they took a slight step back in the first six months of 2023, but are anticipated to continue growing (see Electric Vehicle Growth by GVWR graph above). Growth in the second half of 2022 was driven by long-standing larger fleet orders, creating a spike as opposed to first-quarter 2023 stepping back. 

Large fleets can move the needle swiftly, which not only can cause quick increases of registrations, but also quick decreases. According to Koester, it is important to note that EVs are still being tested by fleet owners—as the first round of high-volume EVs were produced, the cutting-edge/early adopters received their first batches of vehicles for testing. 

“Given the relatively unproven nature of EVs across a broad range of applications, those early fleets are likely to run EVs through a longer range of testing when compared to traditional internal combustion engine (ICE) replacement vehicles,” explained Koester. “This means holding off from ordering a second round right away. We’re still early in the process of onboarding EVs to the industry, and we should not expect growth to be a straight line. The step back in first-quarter 2023 is likely part of an ebb and flow in the growth of the segment, and as more fleets test and prove-out vehicles, the volume will grow to reach an ongoing, ambient level.” 

There are some contractors that have researched EVs and have considered them for their fleets. 

“When checking into EVs for vehicles, our first challenge was our guys take trucks home because they are on call, but we could fix this to some degree,” explained Vincent Youndt, president of Vertex Mechanical, Stevens, PA. “More importantly, with loaded down vans we were very concerned about drivable distance, getting stuck in traffic, etc. We need a little more time to research and process this aspect, and we are in the middle of reviewing EVs for our sales team.” 

Most early adopters like Youndt are in a similar position. Thus, it is best for plumbing contractors to do as much research as possible when in the market for fleet vehicles, whether electric, hybrid or internal combustion engine.

Koester’s words of advice to small fleet operators and contractors: “In the end, plan far ahead, and stay in contact with your dealers and manufacturers, so you don’t get caught waiting for a vehicle that may or may not be buildable.”

Candace Roulo, a graduate of Michigan State University’s College of Communication Arts and Sciences, is a technical writer covering topics in the mechanical contracting, manufacturing and supply chain industries.

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