Posted by Kelli Williams
The recent announcement of new fuel efficiency standards for trucks affects every fleet in the country, including our own. So we’ve been evaluating what the standards mean and projecting how it could affect fleets over the long run.
As with most “new standards,” we tend to approach announcements like this with a degree of skepticism or concern – especially if fleets are left to pick up the bulk of the tab. But these new standards come with an encouraging level of industry buy-in, with the common issue being the current and projected price of fuel.
Rare Cooperation
On the regulatory side, the Environmental Protection Agency (EPA) and the National Highway Transportation Safety Administration (NHTSA) appear to be on the same page and have actually agreed to a single standard. We’re also encouraged by the initial reaction of the big players in our industry, including the American Trucking Associations. And truck manufacturers appear to have accepted the challenge of driving fuel-efficient innovation over time, though at this point it’s hard to determine the ultimate cost to fleet organizations.
Keep an Eye on ROI
We’ll continue to follow this story as new emission standards take shape and drive activity throughout the industry. But thinking ahead, we can benefit from the perspective that manufacturers bring to the challenge – succeeding by meeting the new standard at the lowest possible cost.
For all of us, the effects of these new standards will come down to return on investment (ROI). Our investment in SCR-equipped engines, for example, satisfies an EPA mandate. But our selection of this technology is more about fuel efficiency and lowering our overall fuel expenses – and competing more successfully. And yes, the cost and efficient delivery of diesel exhaust fluid (DEF) certainly factors into the ROI equation. So the most successful fleets will remain focused on how much they can recover, through efficiency and savings, to deliver the best return on investment.
In the fleet business, it seems like the only constant is change. Over time, we can expect more fuel-efficient innovation across the board, particularly from truck manufacturers. And for successful American fleets, it still comes down to wise investments, superior fleet management and a willingness to adapt.
What’s your initial reaction to the new fuel efficiency standards discussion?