Interviews
23 Jan 18

AFLA president Mary Sticha on the North American fleet market in 2018

At the start of the new year, Global Fleet spoke with Mary Sticha, SVP Operational Excellence at Element Fleet Management and president of the Automotive Fleet & Leasing Association (AFLA). Ms Sticha shared her views on the North American fleet market today and where it is heading in the near future.

What is the state of the US and Canada Fleet Market today – how has the market evolved in 2017?
"The US and Canadian markets are robust and growing, with businesses with large fleets focusing on outsourcing activities that are not core to their business. Decision-makers continue to link the United States and Canada together from a fleet perspective, requiring a common approach across the regions, and seamless reporting and cost savings execution."

"This speaks to a broader trend. We saw corporations in 2017 increasingly seeking a global view of their fleet spend and other KPIs and looking for single global suppliers."

"Interest in connected vehicle technology among fleet owners is rising. The key question is how can companies use the data from connected vehicles to reduce operating costs, improve safety and optimise fleet size and usage. Finally, as in prior years, mergers and acquistions have had an impact on fleets. Fleet managers need to manage through changes brought on by consolidation even as their roles continue to evolve within organizations."

How will the US and Canada fleet market evolve in 2018 with what consequences for both customers and suppliers?
"Many companies are looking at formalising North America-wide fleet strategies, especially where fleet decisions are centralised amongst North American Fleet & Procurement teams. We are also seeing a growing number of clients adding Mexico to their NA coverage definition and in some instances including all of Latin America."

"To make this work, companies are looking for greater visibility into global fleet data and key performance indicators like miles per gallon, miles driven per day, number of repairs. This data helps in seeing where you can drive down costs globally."

"The fleet market is looking at ways that vehicle data can identify unsafe driving behaviour to reduce crashes and improve safety, better ways to manage preventive maintenance and proactive repairs, and more."

What are the main trends that will impact fleet management in the US and Canada in 2018?
"Companies will leverage connected data to enhance safety, improve productivity, and drive down corporate costs. Connected technologies and advanced analytics provide a faster way to bring sources of data together for real time recommendations. In 2018, efficiently analysing data and using it to make key decisions will be a necessity for well-run fleets."

"We’re likely to see continued advancements in autonomous vehicle technology, initially in automated safety features. Telematics data is teaching us a great deal about driving behaviour and what we can do to improve driving habits and reduce distracted driving."

"Finally, ride and car sharing services will make an increasing impact on fleet strategy, as companies look at fleet as part of broader mobility strategies – and look at fleet management strategies to lower the cost of managing shared services."

What will be the main focus of AFLA this year?
"This year, on top of our annual conference, educational whitepapers and webinars, our monthly AFLA Fleet Insight newsletter and access to a very robust membership directory and on-line member forums, we are also hosting a live streamed regional forum. We are also working on a mini-MBA programme at a respected university that we hope to launch later this year."

"We will continue to develop our global resources and network by leveraging the Global Consortium established in 2017 with like-minded organisations in Europe, Mexico, and Australia. This Consortium met for the first time in 2017 in conjunction with the Global Fleet Conference in Miami. The Consortium’s goal is to provide all association members access to global information on supplier contacts, best practices by country or region, and other global issues that impact the fleet industry."

 

Authored by: Steven Schoefs