2007 Truck Use Survey

Soaring fuel costs begin to have an effect

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You don’t need us to tell you fuel prices have gone through the roof. Few things are more discouraging than watching the dollar readout on the pumps advance more than three times as fast as the gallon numbers. Although fuel prices are volatile and generally drop after they rise, they always settle to a higher amount than before the runup.

This year, because of the impact spiraling fuel costs have on fleet-dependent businesses, we included some survey questions in the Phc News Truck Use Survey to gauge contractors’ response to the realities of energy markets. Purchasers have no control over fuel prices, but they have total control over their response to changes in those prices.

As the article shows, respondents are taking charge of those factors they can control. Very few, only 17%, haven’t changed their behavior. A majority look at a vehicle’s fuel economy as an important part of their purchasing decision. More are opting for diesel engines, although initial costs for the option are considerably higher. The diesel’s inherently greater efficiency, plus the lower cost of diesel fuel compared to gasoline, make oil-burners a wise choice.

A significant number of contractors report they have changed driving behavior to conserve fuel. This means better planning to reduce miles driven on service calls and cutting out costly, unnecessary side trips. Driving a two-ton truck to pick up four cups of coffee makes no sense.

This year’s survey reports 17% of respondents consider fuel economy a “huge” factor in choosing a new service vehicle. As fuel prices fluctuate, it will be interesting to see how this factor changes. Next year’s survey will tell a more accurate tale, especially if fuel prices level off or drop.

Still loyal to U.S. manufacturers

1. What make truck does your company utilize?

As in surveys past, American-made trucks comprise the bulk of service vehicles owned by contractors. Also, the ownership proportions have held steady, with Chevy and GMC taking top spot, Ford a strong second and Dodge a weak third. Although Dodge scored points some years ago with its “big-rig” look, now that all the manufacturers have emulated its wide-shouldered style, Dodge has lost ground. This year’s percentages for all makes are smaller than last year, a result of the vagaries of the statistical process. However, Dodge’s percent change is some 15 lower than Chevy’s and Ford’s, indicating Dodge’s share of the market has shrunken.

Among imports, Isuzu still leads the others by a wide margin, its practical, diesel-powered utility trucks finding favor with small ranks of loyal users.

2. What type truck does your company own or lease?

This year’s results showed no surprises, with pickups and vans comprising the bulk of trucks used, in equal numbers. However, contractors have replaced some pickups and vans with box/cube trucks, and this category moved up somewhat.

3. How many trucks does your firm operate?

The action in this category is in the lower end, with the number of firms operating one to 19 trucks increasing, while those running 20 to 50 or more decreased significantly.

4. How many SKUs do you maintain in each truck?

Contractors seem to be hauling fewer SKUs around, with the number of those carrying less than 15 dropping 29%. Those carrying 1,000 or more decreased 66%.

5. About how much does your firm spend when purchasing a new service vehicle?

No surprises here, as the bulk of contractors spend between $20,000 and $35,000 per truck, with the most spending $26,000 to $35,000. However, fewer are buying new trucks, with the percentages of new vs. used purchases almost exactly reversing.

6. Does your firm utilize GPS or other fleet location system?

GPS is about as popular among contractors this year as last. That is, there seems to be strong resistance to this technology, as during the past five years this statistic has barely moved.

7. Does your firm perform its own fleet maintenance?

Contractors seem to be farming out more fleet maintenance, with somewhat fewer doing this job in-house.

8. What type engine do you prefer?

A large proportion of respondents like the powerful, rugged diesels.

9. What  products do you carry in each truck?

Repair service continues to be the most common of activities among contractors, with most carrying faucet- and toilet-repair kits. After that are fixtures such as faucets and shower valves, with prvs, toilets, pumps and water heaters filling out the stock.

10. What tools do you carry in each truck?

Most trucks carry the full complement of tools that technicians will need in the field, although again we must ask why not all trucks have basic wrenches -- 93% are reported as carrying them.

11. What is the average price your firm pays for a new truck?

Responses to this question ranged all over the chart, from “as little as possible” to “$85,000 plus.” However, most respondents report paying in the $20,000 to $30,000 range.

12. How long does your firm operate its service vehicles before selling or trading them?

This category also is all over the chart, and there is no correlation between the amount paid and how long the trucks are run. The responses vary from two years to “until they outweigh their profitability.” Some contractors set time limits such as five years, while others trade at a given mileage, such as 100,000. As in years past, some contractors say they “run them until they die.” One reported paying “as little as possible” and running it “as long as possible.”

13. What was your favorite truck and why?

This year we included a “fun” question, and the responses were interesting. Some contractors mention practical reasons, such as those who like their diesel-powered Sprinters for their excellent fuel economy, and those whose trucks fit their needs. Others had more emotional reasons, such as the contractor whose 1940 Ford pickup is his “dream truck.” A goodly proportion just said their favorite truck is “One tough S.O.B!”

There you have it. Contractors don’t pamper their trucks, rather using them for the tools they are, running them long and hard and using them up. At the same time, contractors have an attachment to their trucks, appreciating the service they provide and taking care of them as they would any other valued tool.

Many thanks to those who participated in this year’s truck survey, and we hope you will join us when we send out surveys next year.