Cost Volatility Reshapes Fleet Decisions

Costs

The economics of running heavy-duty fleets are tightening, and maintenance is becoming one of the most actively restructured levers. New benchmark data from Fleet Advantage shows a decisive shift in how fleets manage assets, with outsourcing accelerating, procurement strategies fragmenting, and aging equipment emerging as a growing operational constraint.

The latest Transportation Industry Benchmark Survey highlights a market adjusting to layered pressures rather than a single disruption cycle. While earlier years were defined by supply chain recovery, the current environment is shaped by cost variability, financing constraints, and uncertainty around engine technology and tariff exposure. Nearly half of respondents (48%) now prioritize profitability and EBITDA improvement over the next three to five years, highlighting how fleet decisions are increasingly evaluated through a financial performance lens rather than purely operational metrics.

At the same time, 24% of organizations cite risk reduction, particularly safety and operational risk, as a central focus, while 38% are working to improve scalability as fleet sizes grow. Notably, only 10% view cross-functional alignment as a strategic priority, suggesting that many fleets are still addressing challenges within functional silos rather than through integrated operating models.

Maintenance Models Flip as Fleets Seek Cost Control and Flexibility

The most visible structural shift is in how maintenance is executed. In 2023, 70% of fleets handled maintenance internally, with just 30% relying on third-party providers. By 2025, that model has reversed: 65.5% now outsource maintenance, while in-house operations have dropped to 34.5%.

This transition reflects a broader reassessment of cost predictability and operational flexibility. As maintenance expenses become more volatile, cited by 62% of respondents as a primary concern, outsourcing offers access to specialized capabilities and variable cost structures that are harder to replicate internally. According to trade reports, rising labor costs and technician shortages across North America have further reinforced this shift, making external partnerships a more scalable option.

The move away from full-service leases (FSL) reinforces the same trend. While FSL adoption increased from 15% in 2023 to 27% in 2025, sentiment has cooled. Around 17% of respondents are actively trying to exit these contracts, citing inflexible pricing and limited control over cost drivers. In response, fleets are increasingly favoring unbundled leasing structures, which allow them to select maintenance providers independently and optimize performance against specific cost and service benchmarks.

This realignment is closely tied to how performance is measured. Maintenance cost per mile per hour has become one of the most critical KPIs, cited by 72% of respondents, reflecting a sharper focus on unit-level cost efficiency rather than aggregate spend.

Procurement Uncertainty Meets Aging Fleet Risk

Procurement strategy is becoming less predictable as fleets navigate overlapping uncertainties. In 2023, over half of operators were tracking regulatory triggers such as the CARB pre-buy. By 2025, that clarity has given way to indecision: 45% of respondents now describe themselves as “undecided” on procurement timing due to uncertainty around engine platform changes and tariffs.

This hesitation is reshaping buying behavior. While 24% of organizations plan to accelerate procurement to get ahead of rising costs, an equal share intends to hold steady regardless of price increases. The result is a fragmented market where procurement timing is no longer synchronized across the industry.

At the same time, fleets are holding onto assets longer. In 2023, 37% of fleets operated more than 150 trucks older than five years. By 2025, that figure has risen to 55%, signaling a structural extension of asset lifecycles. This shift is partly driven by higher interest rates, cited by 38% of respondents, which increase the cost of capital for new equipment purchases.

The operational consequences are becoming more visible. Nearly 45% of respondents report that aging equipment is now having a moderate or significant impact on safety performance. This introduces a direct trade-off between capital discipline and operational risk, particularly as older assets tend to carry higher maintenance variability and failure rates.

Compounding the issue is limited visibility into core performance metrics. Around 45% of fleets report difficulty accurately tracking total cost of ownership (TCO) or cost per mile (CPM), constraining their ability to make informed procurement and maintenance decisions.

Cost Visibility Determines Whether Flexibility Holds

Industry data indicates that outsourced maintenance and unbundled leasing deliver more consistent results when fleets maintain tight control over cost tracking at the unit level. Without accurate TCO and cost-per-mile visibility, an issue already cited by 45% of respondents, variability in vendor pricing, service quality, and downtime can offset the expected benefits. Fleets that align maintenance data, procurement timing, and asset performance into a single reporting structure are better positioned to sustain cost discipline as operating conditions continue to shift.

Subscribe to Newsletter

Don’t miss tomorrow’s supply chain industry news

Let Supply Chain 360’s free newsletter keep you informed, straight from your inbox.

Tip: select one or more digests.

EVENTS

03 MAR
LIVE EVENT | The Belfry, Birmingham, UK

SupplyChain360 Summit

3rd & 4th March 2027
06 OCT
LIVE EVENT | Soho Hotel London

SupplyChain360 Forum

6th October 2026