Economic Impact of Telematics Adoption by Commercial Fleets _ 2014 Report
Key Benchmarks for Fleet Operators and Quantifiable Benefits of Business Intelligence-Driven Fleet Management
2. KEY TAKEAWAYS
Fleet operators can see key benchmarks directly relevant or related to their specific business type, in areas such as fleet utilization, service/delivery stop
performance, service radius, fuel consumption and payroll. These insights can be used to identify areas for fleet and customer service improvement.
Additionally, the data in this report details how, on average, fleet operators have an opportunity to significantly improve fleet productivity and cost
efficiency through the application of business intelligence-driven fleet management. Of general interest, FleetBeat shows how fleet management solution
use can lead to significant impacts on the economy and the environment.
Welcome to the first FleetBeat Report from Fleetmatics, a leading global provider of software-as-a-service (SaaS)-based fleet management solutions for fleets
of all sizes, including those with as few as 5 service vehicles to those with many thousands. FleetBeat is a Fleetmatics, and an industry, first. A few of them
actually. Though plenty of market research is already available, this is the first time that information on the fleet management industry has been generated
with this level of real world data support. FleetBeat was developed by scientifically analyzing a Big Data pool from hundreds of thousands of real world service
vehicles that generated tens of billions of data points over a five year period via their on-board telematics units. No personal data was used or disclosed that
could identify a specific customer.
In FleetBeat, fleet operators have an unprecedented opportunity to see key benchmarks relevant to their specific vertical market segment, including insights
around issues such as fleet utilization, productivity and operating costs, and the impacts, on average, of applying fleet management software. Furthermore,
FleetBeat provides in-depth seasonal, regional and vertical industry detail relevant to fleet idling trends. FleetBeat also presents a unique roll-up of the broad
economic and environmental impact of telematics adoption by commercial fleets based on detailed, real world industry benchmark data from Fleetmatics
combined with commercial vehicle data from established third party data providers.
The Fleet Management market is expected to grow from $10.91 billion in 2013 to $30.45 billion by 2018, at a Compound Annual Growth Rate (CAGR) of
22.8%, according to research firm MarketsandMarkets[1]
. With so many businesses interested in purchasing fleet management solutions, FleetBeat gives
prospective buyers – and current users, alike – a resource to help determine not only what to expect from a solution in terms of results but also perspective on
all that is possible.
Solution providers are becoming more sophisticated, with new capabilities that move beyond tactical GPS tracking and the proverbial “dots on a map”. Next
generation, business intelligence-driven solutions serve as the nerve center of fleet businesses allowing them to reach entirely new levels of productivity, cost
savings and differentiating customer service.
With only 12.6% of all commercial vehicles in the U.S. and Canada optimized by a fleet management solution, according to industry research firm Frost &
Sullivan (see Appendix), there is a real differentiation opportunity for fleets of all sizes. This includes the thousands of fleet-driven small-and-medium-sized
businesses looking for a competitive edge, something to enable a new customer service promise or a path to greater profitability or source of money to help
grow the business. In fact, though many Fleetmatics customers operate more than 1,000, or even many thousands of service vehicles, a large part of the
Fleetmatics customer base operates 5-40 service vehicles. Therefore, FleetBeat is highly relevant to small-and-medium-sized and large fleets alike.
FleetBeat will continue to be published periodically with new insights, so stay tuned.
2
The Path to Game Changing Productivity, Cost Savings and
Customer Service is More Clear Than Ever
INTRODUCTION
3. METHODOLOGY
FleetBeat is based on a mix of data pulled from Fleetmatics’ customer base - looking back five years - and third party resources. At the time this research
was compiled, Fleetmatics’ customer base was comprised of roughly 20,000 commercial fleets and roughly 417,000 actively subscribed vehicles. Because
Fleetmatics grew over the five year period, these totals - or pool of fleets and subscribed vehicles from which to gather data - were smaller over the early
part of that period. For trending metrics, Fleetmatics’ customers from the relevant vertical industry segments with enough history to provide significant trend
analysis were used. In short, this means that we looked at fleets with at least five active service vehicles using the technology and took steps not to include
those in pilot phase. Research for this study was conducted in November and December 2013 [3]
.
A complete list of third party resources referenced in FleetBeat can be found in the Appendix on page 18. Specifically, the Big Picture findings on page 5,
which outline the estimated economic impact of telematics adoption by commercial fleets, are based on Fleetmatics key industry benchmark data combined
with commercial vehicle data from established third party data providers such as POLK, which compiles a unique database of all commercial vehicle
registrations. Our conclusions are based on the knowledge that 12.6% of commercial vehicles in the U.S. and Canada currently have telematics units installed
to aid optimization, according to a Frost & Sullivan study from 2012.
3
4. TABLE OF CONTENTS
4
05
06
07
08
09
10
11
12
14
18
The Big Picture
Fleet Productivity and Utilization
Service Call and Delivery Performance
Mid-Sized Fleets in Focus
Fleet Utilization
Service Radius
Cost Efficiencies
Payroll Reductions
Fuel Savings
Idling Trends
Seasonal, Regional and Vertical Idling Trends
Appendix
5. THE BIG PICTURE
The benefits of telematics adoption by commercial fleets are well-documented. The technology empowers fleet-based organizations to reduce fuel
consumption, decrease hours in the workday and mitigate overtime payouts, perform more service calls each day and become more eco-friendly, among
myriad other benefits. But when you look collectively at the total economic impact of things like millions of service vehicles idling their engines and driving less,
and businesses having far better visibility and control over their payroll hours, the impact is remarkable.
As previously stated, Frost & Sullivan estimates that, currently, 12.6% of all commercial vehicles in the U.S. and Canada have telematics units on board to
aid optimization. Fleetmatics analyzed billions of historical performance data points gathered from across its customer base over the past five years to arrive
at a set of performance-related averages covering fuel consumption and fuel-related monetary savings, as well as payroll hour reductions and the resulting
monetary savings for optimized fleets. Using third party data, we then determined how many vehicles represent 12.6% of all commercial vehicles in the
U.S. and Canada and overlaid our performance-related averages to arrive at the figures below. For the CO2
emissions savings calculation, we overlaid our
performance-related average for fuel consumption decreases onto third party data that indicated the amount of CO2
generated by a gallon of burned fuel.
So, let’s have a look at the estimated Big Picture impact that fleet management technology would have currently, assuming that everyone using this type of
technology had the same results as Fleetmatics’ optimized customers.
So why should you care? We’ll delve into several reasons in each section that follows, tying key findings from things like payroll reductions into implications.
But here are a few BIG reasons why these numbers are eye-opening and impactful.
1. Saving billions of dollars means, well…saving billions of dollars. Imagine the possibilities for how that colossal amount of money can be
poured back into businesses, particularly the thousands of small businesses using vehicle telematics. More spending, more jobs, more overall
stability. The possibilities are extremely compelling.
2. Less fuel consumption makes an impact on U.S. fuel dependency. While the EPA and other environmental groups are taking measures to
reduce our country’s oil dependence by doing things like increasing fuel economy standards for cars and trucks, the U.S. Department of Energy itself
states that one solution to decrease our dependence on oil and to reduce greenhouse gas emissions is to develop advanced vehicle technologies
that use gas and energy more efficiently[5]
. Commercial fleet telematics is one very powerful example of technology that enables fleet operators to
use fuel more efficiently.
3. Less fuel consumption also means less CO2
, the primary greenhouse gas emitted through human activities. According to the EPA, the
combustion of fossil fuels such as gasoline and diesel to transport people and goods is the second largest source of CO2
emissions, accounting for
about 31% of total U.S. CO2
emissions and 26% of total U.S. greenhouse gas emissions[6]
. Decreasing carbon emissions goes a long way in
protecting the Earth from the irreparable harm they cause.
Estimated Economic Impact of Telematics Adoption by Commercial Fleets
5
Origin of Big Picture data provided by Fleetmatics[3]
,
Frost & Sullivanand IHS Automotive, Driven by POLK [2]
.
Decrease in fuel consumption (gallons per year) 573,170,404
Total fuel cost savings $2,150,222,358
Decrease in CO2
emissions (tons per year)[2,3,4,5,6,7,8,10,11]
5,032,436
Decrease in payroll hours per year 1,264,493,932
Total cost savings due to decrease in payroll hours[2,3,4,9]
$34,876,494,842
Direct Benefits
Telematics adoption rate:
12.6%
6. FLEET PRODUCTIVITY
AND UTILIZATION
Service
Call &
Delivery
Performance
Service Radius
WHAT YOU’RE ABOUT TO SEE
Let’s dive into Fleetmatics’ data on service call and delivery performance, as well as provide a look
at service radius benchmarks for 12 fleet-driven vertical industries like electrical, landscaping and
plumbing. When the number of service calls made per day directly impacts your business’ revenues,
you should know how your team’s performance stacks up against the competition. In addition to
looking across all fleet sizes, we also have a section focused on mid-sized fleets.
In addition to stops per day, we provide benchmarks for how expansive your fleet’s service radius
should be given the average radius of operation of other businesses in the industry. Here, we take a
cross-vertical approach to break down industry-by-industry how much ground your team should be
covering based on similar fleets’ performance. But we didn’t stop there. We’ll also provide regional
and country-wide averages for service radius so you can see where your fleet stacks up compared to
other service businesses in your region and nationwide.
6
7. Inception Current Percent Change Non-Service
Calls[13]
Inception
(Adjusted for non-
service calls)
Current
(Adjusted for non-
service calls)
Percent Change -
Inception vs. Current
Contractors Heavy 6.6 7.5 14% 2 4.6 5.5 20%
Contractors Light 7.3 8.0 10% 2 5.3 6.0 14%
Delivery 8.2 9.1 11% 2 6.2 7.1 14%
Disinfecting and Pest Control Service 12.9 13.9 8% 2 10.9 11.9 10%
Electrical Work 7.7 8.3 8% 2 5.7 6.3 11%
For Hire Trucking, Except Local 6.1 7.0 14% 2 4.1 5.0 21%
For Hire Trucking, Local 5.9 6.8 14% 2 3.9 4.8 21%
Home & Business Field Service 7.7 8.3 7% 2 5.7 6.3 10%
Landscapers 8.6 10.2 19% 2 6.6 8.2 25%
Passenger Transportation 8.5 8.7 3% 2 6.5 6.7 4%
Plumbing, Heating, Air-conditioning 8.6 9.0 5% 2 6.6 7.0 7%
Specialty Transport 7.3 7.7 6% 2 5.3 5.7 8%
Total Average 7.9 8.6 9% 2 5.9 6.6 13%
SERVICE CALL AND DELIVERY PERFORMANCE
The number of service calls or deliveries (stops) that a fleet-driven business can make per day has a major bearing on profitability and customer service.
Theoretically, more stops per vehicle per day means more revenue, the ability to service customers in a more flexible and timely manner and the ability to grow
the business without growing the fleet.
Fleetmatics studied field service businesses across a number of vertical industries, as well as businesses in the delivery and trucking categories, that operate fleets
of all sizes, to determine how stop performance was impacted by the application of fleet management technology. The chart below reveals both before and after
(fleet management software implementation) information, in addition to benchmarking insights for fleet operators in the industries studied and similar industries.
IMPLICATIONS
Landscaping companies, on average, gained 1.6 stops per vehicle per day
based on Fleetmatics’ customer dataset. On average, this means that a
small landscaping business with five trucks operating (with the assumption
that it averages $150 in revenue per stop) could gain $1,200 in revenue per
working day. That total balloons to $3,600 per working day for a business
with 15 trucks operating.
KEY FINDINGS
Across industries Fleetmatics studied for this report, there was a more
than 13% increase in stops when comparing the number of stops that
Fleetmatics customers currently experience per vehicle per day vs. the first
month fleet management software was implemented.
Landscaping companies led the way with a 25% increase in stops
per vehicle per day, while trucking companies gained 21% and heavy
contractors gained 20%. Disinfecting and pest control businesses stop more
than any other vertical studied and saw a full stop per vehicle per day gain.
MID-SIZED FLEETS IN FOCUS
Fleetmatics conducted the same research as above, specifically on mid-size fleets operating 20-49 vehicles, looking broadly across field service customers
and then separately at delivery/trucking customers, which have different dynamics. Examples of service call/delivery productivity increases from using fleet
management technology follow.
Field Service customers increased their
number of stops per vehicle per month
by 17%, with 24% more miles driven per
vehicle per month on average.
IMPLICATIONS
By making more service calls, field service businesses, such as those in
HVAC, landscaping and pest control, presumably make more revenue.
The “more miles driven” statistic translates to an expanded service radius
and/or fewer technicians needed to service the company’s current and
new customers.
Delivery/Trucking customers increased
their number of stops per vehicle per
month by 23% while only increasing
mileage 7% per vehicle per month.
IMPLICATIONS
This suggests more efficient routing may help the fleet operator to get
more work done without significantly increasing miles driven, which
speaks to efficiency gains. Since truck drivers are paid by the mile,
increasing miles driven adds significantly to a delivery/trucking company’s
costs. Efficient routing is paramount.
FLEET PRODUCTIVITY AND UTILIZATION 7
8. FLEET UTILIZATION
Fleet-driven service businesses are constantly seeking to do more. Fleet management technology helps
them realize that goal.
On average, Fleetmatics customers increased fleet utilization by nearly 15%. This was calculated by
comparing the count of active unique vehicles in most of our customers’ fleets during the initial month
of implementing fleet management software versus the time at which we analyzed the data (November
and December 2013). This data shows that fleets optimized by fleet management software are actually
able to increase the number of service vehicles that service the company’s customers, including new
customers as the businesses have grown.
SERVICE RADIUS
To help fleet managers benchmark approximately how much ground each of their drivers should be covering on average in a day, Fleetmatics has determined
an average service radius for 12 different types of businesses in each of the four major U.S. regions, as well as countrywide. This information, as based on
Fleetmatics customer database from the period from 2009-2013, reflects averages after fleet management software had been implemented. See the table for
more information.
ANALYSIS
Segmentation analysis has shown there is enough credible difference between various business types and regions to make this information useful for targeted
benchmarking purposes. Part of building these benchmarks included analysis of industry/regional credibility and testing to see if there were meaningful
differences between segments.
For example, the For Hire Trucking vertical (not including local deliveries) averages a 185 mile service radius for the Midwest but only 107 miles for the
Northeast. While the Northeast is very regional, the Midwest features much longer distances between metro areas and also serves as a central trucking hub
for reaching much of the U.S.
Landscapers have the smallest service radius (16 miles on average, nationally), typically serving a compact area.
Northeast Midwest Southeast South Central West Countrywide
Contractors Heavy 26 36 30 38 29 31
Contractors Light 24 28 32 26 24 28
Delivery 33 57 45 37 42 41
Disinfecting and Pest Control Service 23 29 23 28 21 25
Electrical Work 25 27 30 30 29 27
For Hire Trucking, Except Local 107 185 144 150 161 146
For Hire Trucking, Local 58 131 111 87 132 102
Home & Business Field Service 28 36 33 38 31 33
Landscapers 15 13 18 19 20 16
Passenger Transportation 27 34 39 45 39 35
Plumbing, Heating, Air-conditioning 21 21 24 24 23 22
Specialty Transport 58 166 87 118 115 103
Total Average 30 51 41 42 43 40
RADIUS MILES
+15%
Fleet utilization increase
across the Fleetmatics
customer base
FLEET PRODUCTIVITY AND UTILIZATION 8
9. COST EFFICIENCIES
9
Payroll
Savings
Fuel Savings
WHAT YOU’RE ABOUT TO SEE
Payroll and fuel costs are two of the largest operating expenses for fleet-driven service businesses,
and when gas prices are on the rise, no one feels the pinch more than fleet operators. The bad
news: fuel prices in the past few years have shown very high volatility with a tendency to go higher.
The good news: there are simple ways to reduce your fleet’s fuel consumption like reducing idling,
harsh driving and the number of miles driven.
In this section, we’ll dig into payroll benchmarks, as derived from Fleetmatics’ data, and illustrate
how drastically payroll costs are driven down over time when companies use fleet management
technology. Fewer hours on the clock means fewer overtime payouts, too, so fleet owners are
saving in more ways than one. We’ll also examine fuel savings trends, outlining how much money
optimized fleets save each month when they reduce engine driving and idling time.
10. PAYROLL REDUCTIONS
This section illustrates, vertical-by-vertical, how payroll costs derived from tracked vehicle work hours are driven down in optimized fleets over time (at the time
of the research versus the first month fleet management software was implemented). This is achieved through better visibility and control over timesheets and
a far more accurate read on actual hours worked.
Per Vehicle
Average
Payroll Hours
Per Vehicle
Day - At
Inception
(before fleet
optimization)
Average
Payroll Hours
Per Vehicle
Day - Current
(at time of
research/
after
optimization)
Percent
Change -
Inception vs.
Current
Hours Change
- Inception vs.
Current
Bureau
of Labor
Statistics
Average
Hourly Wages
by Industry
Overtime -
1.5x Average
Hourly Wage
Total DAILY
Cost Savings
Due to
Decrease in
Payroll Hours
Total WEEKLY
Cost Savings
Due to
Decrease in
Payroll Hours
Total ANNUAL
Cost Savings
Due to
Decrease in
Payroll Hours
Contractors Heavy 10.5 8.2 -21% -2.3 $22.24 $33.36 $76.73 $356 $18,537
Contractors Light 10.1 8.2 -19% -1.9 $18.55 $27.83 $52.87 $259 $13,456
Delivery 10.3 8.2 -21% -2.1 $16.32 $24.48 $53.86 $257 $13,343
Disinfecting and Pest Control
Service
9.9 8.1 -18% -1.8 $15.47 $23.21 $41.77 $200 $10,421
Electrical Work 10.2 8.5 -16% -1.7 $25.50 $38.25 $65.03 $303 $15,731
For Hire Trucking, Except Local 12.4 9.7 -22% -2.7 $19.40 $29.10 $78.57 $385 $20,005
For Hire Trucking, Local 11.9 9.2 -23% -2.7 $19.40 $29.10 $78.57 $385 $20,005
Home & Business Field Service 10.7 8.5 -20% -2.2 $17.88 $26.82 $59.00 $278 $14,463
Landscapers 9.9 8.0 -19% -1.9 $12.44 $18.66 $35.45 $170 $8,845
Passenger Transportation 10.7 8.5 -20% -2.2 $18.50 $27.75 $61.05 $288 $14,965
Plumbing, Heating, Air-conditioning 10.4 8.6 -17% -1.8 $25.46 $38.19 $68.74 $327 $17,015
Specialty Transport 12.3 10.0 -18% -2.3 $19.40 $29.10 $66.93 $312 $16,236
Other 10.6 8.5 -20% -2.1 $16.15 $24.23 $50.87 $249 $12,942
Total Average 10.6 8.5 -20% 2.1 $18.01 $27.02 $56.74 $288 $14,962
KEY FINDINGS
On average, across all industries analyzed for this report, Fleetmatics’
data shows a 20% decrease in payroll hours was derived from having
an optimized fleet. In many cases, this makes the difference between
a standard versus overtime workday, meaning not only less hourly pay
overall, but also the reduction or elimination of overtime payouts.
The potential dollar impact is tremendous. On average across all industries
analyzed, using wage averages by industry according to the Bureau of
Labor Statistics, annual payroll cost savings were $14,962 per vehicle for
those that used the technology to reduce payroll hours. That means that a
small business operating just 5 trucks could save $74,810 per year
through optimization. A larger fleet of 150 trucks could save more than
$2.2 million using the technology.
IMPLICATIONS
In addition to reducing payroll hours while maintaining (or increasing) the
number of service calls, fleet management solutions with automated time
sheet validation can streamline payroll processes, which helps a company
to more closely monitor staff hours and reduce overtime costs. These
things also mean less paperwork since time is captured and available
through the Fleetmatics system for:
• Actual hours a vehicle is in operation
• Daily actual start and finish times
• Hours worked and days worked
• Average daily hours and weekly totals
Additionally, the Federal Motor Carrier Safety Administration has specific
regulations for what a standard workday looks like in terms of Hours of
Service (HOS). Fleet management assists businesses in complying with
those guidelines and avoiding penalties associated with lack of compliance.
The standard workday for optimized fleets decreases 20%
on average, from 10.6 hours to 8.5 hours across verticals[14]
.
COST EFFICIENCIES 10
11. This section estimates the cost savings achieved by Fleetmatics’ customers resulting from the use of fleet management technology by comparing fuel
expenses over time (at the time of the research versus the first month fleet management software was implemented). These savings are based on a
0.9-gallon-per-hour fuel consumption rate for engine idling and a 2.7-gallon-per-hour fuel consumption rate for engine driving, with an average fuel price of
$3.70 per gallon (Source: U.S. Energy Information Administration - February 2014).
KEY FINDINGS
ENGINE IDLE SAVINGS
An overall average savings of $11 per vehicle per month in reduced engine
idle time is seen. Over the course of a year (based on a 20-workday
month), that’s a total of $132 per vehicle per year. Those savings will
be even greater for industries in which service calls, deliveries, etc. are
made on the weekends and therefore, the number of workdays per month
is higher.
ENGINE DRIVING SAVINGS
$34 per vehicle per month on average was saved primarily through
reduced engine driving time, in large part due to better routing. Over the
course of a year, this would result in $408 in savings per vehicle due to
more efficient routing.
TOTAL SAVINGS
When engine idle and engine driving savings are combined, the average
savings is $45 per vehicle per month, which equates to a total cost
savings of $540 per vehicle per year.
Those numbers jump significantly to a savings of $210 per vehicle per
month, or $2,520 per vehicle per year, for fleets that focus specifically
on reducing idle and engine driving time. For a small fleet of 10
vehicles, that’s $25,200 per year, potentially enough for a new service
vehicle. For a larger fleet of 1,000 service vehicles, savings would total
approximately $2.52 million per year.
IMPLICATIONS
Fuel is a necessity for any fleet-driven business, and it also happens to
be one of the largest pain points when it comes to keeping operating
costs contained. By reducing unnecessary idling, improving routing and
dispatching, and hindering speeding, hard driving and other fuel-wasting
behaviors, fuel costs can be reduced significantly, which can amount to
tremendous cost savings.
Using less fuel also helps business fleets achieve “greener” operations,
specifically as it relates to reducing greenhouse gas (GHG) and CO2
emissions. Companies also face an increasing number of “eco-conscious”
clients who demand some level of environmental accountability. For
companies that rely heavily upon their fleets, fleet management systems
provide a deep mine of statistical data and daily reports that help
companies not only run considerably “greener” fleets, but to generally run
more efficiently and cost-effectively.
Engine idle savings per
vehicle per month
Engine driving savings
per vehicle per month
$34
$11
Combined total savings
for engine idle and
engine driving per
vehicle per month
Combined total savings
for engine idle and engine
driving per vehicle per
month:
$45
FUEL SAVINGS
These savings increased significantly from
a total of $45 per vehicle per month to $210
per vehicle per month when examining fleets
that focused specifically on reducing idle and
engine driving time12
. Those companies saved
on average $2,520 per vehicle per year.
FOCUSED IDLING PROGRAMS
OVERALL AVERAGE
COST EFFICIENCIES 11
12. Seasonal
Regional
Vertical
IDLING TRENDS
WHAT YOU’RE ABOUT TO SEE
Last but definitely not least, in this section we’ll take a closer look at idling trends – by region, season
and vertical – so you have the exact type of benchmarking information you need to gauge whether
your team is spending too much time idling. As our Fuel Savings section indicates in detail, there’s a
lot to gain from cutting back on idling. Let’s take a look.
12
13. Idle (minutes) - At
Inception
Idle (minutes) -
Current
Percent Change
- Inception vs.
Current
Contractors Heavy 90 82 -8%
Contractors Light 55 42 -23%
Delivery 88 75 -14%
Disinfecting and Pest Control Service 39 30 -24%
Electrical Work 38 31 -19%
For Hire Trucking, Except Local 237 207 -13%
For Hire Trucking, Local 194 176 -9%
Home & Business Field Service 89 83 -7%
Landscapers 61 46 -23%
Passenger Transportation 101 97 -4%
Plumbing, Heating, Air-conditioning 37 27 -27%
Specialty Transport 182 176 -3%
Total Average 86 76 -12%
Idling refers to when a vehicle’s engine is running but the vehicle is parked or not moving. The information here, based on Fleetmatics’ customer data,
provides average minutes of idle times per vehicle per day by region and season. We have also captured average idle times per region and season by vertical.
This data enables business owners and fleet managers to see how their own fleets compare, on average, to other businesses in their region and industry and
inform efforts to reduce service vehicle idling, one of the easiest paths to significant cost savings.
Idle Times (Trended average minutes per vehicle per day)
IMPLICATIONS
Though it may not be top of mind, idling is one of the largest contributors to
wasted fuel. Even if business owners, operators and service managers who
touch the services fleet are conscious of the issue, they may not be aware
of just how big a drain it actually is and how easy it is to fix. Fleet managers
can be empowered to minimize idling by setting up reports in Fleetmatics
that indicate things like: idle start and stop times, location of idling, total idle
time, and more. Cracking down on this costly and unnecessary activity can
mean tremendous savings for fleets of all sizes.
KEY FINDINGS
On average across all verticals, a 12% decrease in idling minutes (per
vehicle per day) was achieved after implementing commercial vehicle
telematics technology. That figure encompasses idling minutes at inception
(before fleet management software was implemented) to current (the
time at which the research was conducted). Plumbing, Heating & HVAC
experienced the most drastic decrease in idling minutes with a 27%
drop over this time period. That number represents a decrease from 37
idling minutes on average per vehicle per day, to only 27 idling minutes
per vehicle per day. In a typical 20-day work month, this equates to 200
minutes of idling time saved and an approximate savings of $11 per vehicle
per month.
For Hire Trucking (Except Local) is the industry that sees the highest
average amount of idling minutes per vehicle per day at 237, based on the
data evaluated for this report. Over time, this industry’s amount of idling
time per vehicle per day dropped to 207 minutes, representing a 13%
decrease.
IDLING TRENDS 13
14. Idle Times Across Regions and Seasons Spanning All Verticals
IMPLICATIONS
Idle times peak during the Winter and Summer months, which is to be
expected due to the typically more extreme temperatures during those
seasons across regions. However, idling is a significant financial strain for
fleet-based businesses. As we noted above and in our Fuel Savings section,
optimized fleets can save very meaningful dollars on idle control alone.
100
90
80
70
60
50
40
30
20
10
0 Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
KEY FINDINGS
Of Fleetmatics’ customers studied, South Central has the highest average
idle time of all regions at 82 minutes per vehicle per day. On the lowest
end of the spectrum is the South East at 59.7 minutes per vehicle per
day. It is interesting to see the disparity between these two regions, in
particular, which share somewhat similar climates but whose economies
and geographies are different (think: Florida and Texas). You can find the
state-to-region assignments in the Appendix on page 18.
The total trended average idle time across all regions and seasons is 76
minutes per vehicle per day. Not surprisingly, the season with the highest
average idle time per vehicle per day is Winter at 80.6 minutes per day,
while the lowest is Spring at 66.9 minutes per vehicle per day.
Spring Summer Fall Winter
Midwest 71.4 73.4 75.1 95
North East 71.6 72.3 72.8 92.7
South Central 78.7 86.0 79.9 83.5
South East 56.1 62.4 58.3 61.9
West 61.1 64.3 67.6 66.3
*Minutes of idling time per vehicle per day
IDLING TRENDS 14
SEASONAL, REGIONAL AND
VERTICAL IDLING TRENDS
15. KEY FINDINGS
Plumbing, Heating and HVAC businesses across all regions and all
seasons, on average, idle for 27 minutes per vehicle per day on a trended
basis. At the lowest end of the spectrum is the West with 25.9 minutes of
idling per vehicle per day on average, followed closely by both the Midwest
with 26.4 and the South East with 26.7 minutes per vehicle per day, on
average. The highest region is South Central at 35.4 minutes per vehicle
per day on average.
Idle Times At-A-Glance Across Regions and Seasons for Individual Verticals
Plumbing, Heating & HVAC
Spring Summer Fall Winter
Midwest 21.7 23.9 22.7 38.3
North East 25.1 26.1 25.2 39.6
South Central 31.1 41.3 33.8 34.6
South East 23.2 30.0 24.5 28.9
West 23.8 26.1 25.5 28.5
*Average idling minutes per vehicle per day
50
45
40
35
30
25
20
15
10
5
0
Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
The average per vehicle per day ranking for seasonal idling across all regions in
Plumbing, Heating and HVAC is (lowest to highest):
• Spring: 24.4 minutes
• Summer: 25.3 minutes
• Fall: 28.3 minutes
• Winter: 35 minutes
This is consistent with what we generally see across regions and verticals –
Winter tends to see the highest amount of idling, while Spring sees the lowest.
KEY FINDINGS
Across all regions and seasons, the trended average idle time for Electrical business fleets is 31 minutes per vehicle per day. Across all regions and seasons,
the North East region does the most idling at 45.5 minutes per vehicle per day on average. On the lowest end is the West, which sees an average of only 17.6
minutes per vehicle per day.
The single highest seasonal, regional idling average for Electrical business fleets is the North East during the Winter where vehicles idle for 55.9 minutes on
average each day. At the lowest end are Electrical businesses in the West during Summer, when average idle time per vehicle per day is 16.6 minutes.
Spring Summer Fall Winter
Midwest 24.2 21.9 23.9 39.6
North East 41.9 42.9 43.1 55.9
South Central 40.8 42.2 38.6 45.6
South East 28.7 33.6 32.8 36.2
West 16.7 16.6 17.4 20.1
*Average idling minutes per vehicle per day
100
90
80
70
60
50
40
30
20
10
0
Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
Electrical
IDLING TRENDS 15
16. Landscaping
Spring Summer Fall Winter
Midwest 53.8 50.4 52.5 102.0
North East 69.0 60.6 66.5 111.7
South Central 66.1 66.8 65.8 70.8
South East 45.3 46.0 44.7 51.5
West 38.3 39.4 41.9 40.1
*Average idling minutes per vehicle per day
120
110
100
90
80
70
60
50
40
30
20
10
0
Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
KEY FINDINGS
For Landscaping fleets, the average trended amount of minutes idling per vehicle per day is 46. The region with the least amount of average idling across
seasons is the West with 40 minutes per vehicle per day, while the region with the highest amount of idling across seasons is the North East with 73 minutes
of idling per vehicle per day.
Seasonally, Winter – by far – has the highest average idle time across regions at 78.6 minutes per vehicle per day. On the lowest end is Summer, where
Landscaping businesses across regions idle for 52.5 minutes per vehicle per day.
As we have seen with other vertical industries, the region with the highest seasonal idling average is the North East in the Winter with an average of 111.7 idle
minutes per vehicle per day. A close second is the Midwest during the Winter, where Landscaping fleet vehicles idle for 102 minutes per vehicle per day. The
region with the lowest seasonal idling is the West during Spring, when Landscaping vehicles average only 38.3 minutes of idling per vehicle per day.
Spring Summer Fall Winter
Midwest 19.6 31.5 23.8 26.4
North East 27.6 31.4 26.5 35.2
South Central 36.6 49.7 37.8 32.5
South East 27.7 39.0 29.9 27.1
West 20.3 25.2 23.6 19.1
*Average idling minutes per vehicle per day
50
45
40
35
30
25
20
15
10
5
0
Disinfecting & Pest Control
Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
KEY FINDINGS
The trended average idle time for Disinfecting and Pest Control fleet
vehicles across regions and seasons is 30 minutes per vehicle per day. On
the highest end is South Central with 39.6 minutes per vehicle per day on
average across seasons. On the lowest end is the West with 22.3 minutes
per vehicle per day on average across seasons.
The South Central region sees the highest average idle time across all
regions and seasons during the Summer, where vehicles idle for 49.7
minutes per day, on average. The regional, seasonal low is the West during
the Winter, where vehicle average only 19.1 minutes per day of idle time.
Across all seasons, for Disinfecting & Pest Control the regional breakdown of
average idle times per vehicle per day from least to greatest is as follows:
• West: 22.3 minutes
• Midwest: 25.3 minutes
• North East: 29.9 minutes
• South West: 31.1 minutes
• South Central: 39.6 minutes
The South Central region sees the highest
average idle time across all regions and
seasons for Disinfecting and Pest Control.
IDLING TRENDS 16
17. Spring Summer Fall Winter
Midwest 83.4 83.3 82.0 109.4
North East 70.5 70.6 71.7 97.2
South Central 56.0 62.7 55.2 63.1
South East 55.4 62.7 56.5 64.6
West 41.1 42.1 42.2 43.6
*Average idling minutes per vehicle per day
Delivery
120
110
100
90
80
70
60
50
40
30
20
10
0
Midwest North
East
South
Central
South
East
West
Spring Summer Fall Winter
KEY FINDINGS
The trended average idle time for Delivery fleet vehicles across regions and seasons is 75 minutes per vehicle per day.
The Midwest has the highest average idle times across regions and seasons at 88.7 minutes of idle time per vehicle per day. On the lowest end is the West
with 42.2 minutes of average idle time per vehicle per day.
As we have seen throughout our analysis of seasonal idling averages, the Winter has the highest average idle time across seasons for Delivery vehicles, with
82.6 minutes of idle time per vehicle per day. Across all regions, Winter is the season with the highest amount of idling per vehicle per day.
During the Winter in the Midwest, Delivery vehicles idle for an average of 109.4 minutes per vehicle per day. This is the highest average idle time across all
regions and seasons.
IDLING TRENDS 17
18. 1
MarketsandMarkets
http://www.prnewswire.com/news-releases/fleet-management-market-worth-3045-billion-by-2018-235559421.html.
U.S. Department of Energy’s fueleconomy.gov
http://www.fueleconomy.gov/feg/oildep.shtml
Environmental Protection Agency
http://www.epa.gov/climatechange/ghgemissions/gases/co2.html
Frost & Sullivan
Commercial fleet vehicles in U.S. and Canada
2
Frost & Sullivan local commercial fleets vehicles in the U.S. and Canada 18,500,000
Vehicles that utilized a fleet management solution (2012 estimated) 2,331,000 12.6%
3
Fleetmatics vehicle tracking data between 2009-2013
4
IHS Automotive driven by POLK – commercial vehicle registration data 2013.
5
http://www1.eere.energy.gov/cleancities/pdfs/strategic_plan.pdf Accessed January 2014
6
http://www.epa.gov/climatechange/ghgemissions/gases/co2.html Accessed January 2014
7
Fuel Efficiency
*Source: U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2010, Table VM-1, April 2011 http://www.fhwa.dot.gov/policyinformation/statistics/2010/vm1.cfm
Average fuel consumption per light vehicle (miles per gallon gasoline) 17.3
Average fuel consumption per tractor trailer vehicle (miles per gallon diesel) 6
Average light vehicle driving fuel efficiency (gallons per hour) 2.3
8
Average idling fuel efficiency (gallons per hour)
*Source: Argone National Laboratory www.transportation.anl.gov/downloads/idling_worksheet.xls
0.9
Average cost per gallon for gasoline fuel
Source: U.S. Energy Information Administration (February 2014)
$3.70
Average cost per gallon for diesel fuel $4.10
9
Payroll Costs
*Source: http://www.bls.gov/oes/current/oes533033.htm
Truck driver median pay (per year) $37,770.00
Truck driver median pay (per hour) $18.16
Annual work days per vehicle 252
10
Carbon Footprint
*Source: http://www.epa.gov/climatechange/ghgemissions/sources/transportation.html
Total annual CO2 vehicle emissions (tons per year) from commercial vehicles in U.S. 1,800,000,000
11
CO2 Emissions for Road Vehicles
*Source: http://www.epa.gov/climateleadership/documents/emission-factors.pdf
12
Fleets that experience idle savings greater than $0 and engine on time (net of idling) savings greater than $0
13
It is assumed that each driver makes an average of two non-service-call-related stops per day (e.g., one for lunch/break and one at the end of the day)
14
Fleets that experience a payroll savings of greater than $0.
Fuel Type CO2 Emissions Factor (kg CO2/unit) Unit
Motor Gasoline 8.78 gallon
Diesel Fuel 10.21 gallon
Carbon content of gasoline (g Carbon/gallon) = 2,421
SUMMARY OF STATISTICAL SUPPORT
18
For the purposes of the Regional Idling Trends, states were divided into the following regions:
MidwestNorth East South Central South EastWest
Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri
Nebraska
North Dakota
Ohio
South Dakota
Wisconsin
Connecticut
Delaware
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
Pennsylvania
Rhode Island
Vermont
Arkansas
Louisiana
Oklahoma
Texas
Alabama
Georgia
Florida
Kentucky
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
Arizona
California
Colorado
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming
APPENDIX
The research and data analysis for the FleetBeat report was led by Michael Mocanu, Business Intelligence and Analytics Manager at Fleetmatics. Mocanu has over a decade of industry experience and is a graduate of the Massachusetts Institute of Technology, Sloan
School of Management’s International Management Program, and holds an MBA in Operations Research and Finance and a Master of Science in Biochemistry from Case Western Reserve University. Mocanu is also the inventor or co-inventor on a number of existing
and pending Fleetmatics patents related to GPS and location-based algorithms. Additional research was provided by Irina Mirza, who manages market research at Fleetmatics. Mirza holds advanced degrees in Statistics and Mathematics and has over a decade of
market research experience at Microsoft and Farmers Insurance in addition to her time at Fleetmatics.