wiliams
DESCRIPTION
cvocTRANSCRIPT
DAVE WILLIAMSVice President,
Knight Transportation
Overview
• What do fleets consider when buying?
• What Govt regulations have changed decision making?
– Federal Regs– State Regs (California)
• What other trends are coming and going?
Fleet Buying Decisions
• Historically, Acquisition Price and Residual Value have ruled the day
• Operating Costs are a more substantial factor today
• Fuel and Downtime are heavyweight Operating Costs – Fuel Cost and Greenhouse Gas Regs– Hours of Service, Driver Retention, and Emissions Complexity
• Capital Considerations keeping fleets from refreshing at 1990’s rates
A Math Equation
Acquisition Price + Operating Costs – Residual Value =
Total Cost of Ownership
Acquisition Price + Operating Costs – Residual Value =
Total Cost of Ownership
Govt Regulations
Federal• 2002 EGR - Acq Price Op Costs Res Value • 2007 DPF - Acq Price Op Costs Res Value• 2010 SCR - Acq Price Op Costs Res Value • 2014+ GHG - Acq Price Op Costs Res Value
State (California)• TRU - Acq Price Op Costs Res Value• GHG - Acq Price Op Costs Res Value• Engine - Acq Price Op Costs Res Value
Game Changers
Coming and Going Trends
Coming• Weight reductions• Automated manual transmissions• Safety Technologies• Anything Fuel savings• Alternative Fuels• Economic Driver Retention Features• High Tech Telematics• Remote Diagnostics
Striped Socks & Bell Bottoms
Going• Alternative Fuels• Paper log books• Under-capitalized carriers• Bad Public Trucking Image
(needs to go)
Acquisition Price + Operating Costs – Residual Value =
Total Cost of Ownership