The automotive industry saw some surprising results during the Covid-19 crisis in this country and while no one is going to say it was a good thing, there were some serious numbers – some of which exceeded those of the year before – being reported in the middle of the crisis.
For the businesses and organisations which operate in support of the automakers, organisations like SG Fleet for example, this year’s second quarter (April - June) saw the same phenomenon when it came to fleet management business.
“We saw a surge in demand for corporate fleet management and leasing in Australia,” says managing director Geoff Tipene, “and this was mirrored in New Zealand, though the increases were proportionate with the population.”
This information came to light through a company report and presentation in August which highlighted emerging and accelerated trends as a result of the Covid environment.
What was clear from the report was a shift away – on the part of both companies and the public – from public or shared transport in favour of single occupancy options, where social distancing is more easily controlled.
This results in a preference and demand from companies to use owned or leased fleet vehicles, either new or pre-owned, which is driving clients towards leasing providers like SG Fleet.
But the new car industry can offer the same products, so why would clients not go direct?
“The answer to that,” says Geoff “is another trend we have recorded. When companies are faced with a pandemic crisis – or any crisis where their financial wellness is challenged – the reaction is to look for greater cost efficiencies.”
Basically, any company which has in the past been looking to save money on fuel, tyres or anything to do with their fleet operations will now be looking to do that more enthusiastically when there is lessened certainty as to where the money is coming from.
Cost containment has become more relevant to fleet management than ever before and thus companies with larger fleets may look seriously at whether all the vehicles are being used as well as they could be?
This leads on to the related topics of how to make a fleet run more efficiently – better fuel monitoring, driver training, vehicle utilisation and so on. And that is where a specialist fleet manager such as SG Fleet can step in.
Another element contributing to the increase in business is that Covid-19 did not affect every industry equally. Local distribution and utility service providers for example, have had to maintain or even expand their operations and this is not something that is going to ease off anytime soon.
These industries have increasingly been turning to the lease companies like SG Fleet to leverage commercial vehicle expertise and accessibility and the trend towards outsourcing fleet management appears to be turning more and more to fleet management experts.
