Fleet managers are taking proactive steps to manage operating expense — from avoiding $500,000 in tariff-related costs through vendor coordination to using AI dashcams to reduce collision expenses.
AF recently asked fleet managers about their top operating cost challenges in 2025, how they’re addressing them, and whether they plan to make any changes based on current dynamics.
We asked:
1. What are your top operating cost challenges you’re facing in 2025, and what are you doing to address them?
2. Are you planning any changes in your fleet in response to current cost dynamics?
Here’s what they said:
Fulfilling Orders Before Tariffs Set In
Amy McAdams, CAFM, fleet manager for Diebold Nixdorf, has been working closely with her upfit partners during recent replacement orders. “I was able to provide volume information for orders that were in the process of being submitted,” she said.
“Because I have developed a close working relationship with our vendors, they were able to ship all upfit parts needed to fulfill our orders prior to the first round of tariffs being enforced.”
McAdams reported a resulting cost avoidance of about $500,000 for 2025, “that would not have been possible without clear communication.”
Finding the De-Fleet Sweet Spot
Jim Petrillo, fleet and treasury services manager for Fujifilm, is dealing with the added costs of a safety program. But it’s for long-term benefit: “By increasing driver safety education and safety programs,” he said, “we can reduce accident rates in order to save lives and help control insurance costs.”
In terms of rising maintenance costs, Petrillo cited the need to “find the sweet spot when it’s less expensive to sell the vehicles than to try to run them longer.”
Petrillo said he’d be adjusting the company’s fleet selector to contain costs.
Reevaluating Vehicle Eligibility
Kimberly Fisher, director of global fleet and travel at NOV Inc., has been working to reeducate her drivers about the importance of preventive maintenance and how to avoid more costly repairs in the future.
She is also reevaluating who is eligible for vehicles. Currently, the company uses a mileage requirement, but it is looking to base eligibility on job title. Field techs, whose vehicles are “tools of the trade,” would not be subject to a mileage threshold.
Sales and other positions would be examined more closely. “We would de-fleet by a potential of 200 to 300 vehicles,” Fisher said. “This would generate savings in lease, fuel, maintenance, insurance, and other areas, not to mention the gain on sale that most of these units would represent.”
Held Hostage by Tariffs
The top challenge for Lisa Kneggs, fleet manager for Farmer Brothers, is ongoing maintenance and repair costs for her fleet of delivery vans and heavy-duty trucks. “Add that to the downtime waiting for parts and service, which means lost revenue and decreased customer satisfaction,” she said.
When asked about making fleet changes in response to current dynamics (i.e. tariffs) Kneggs said, “We are held hostage at this point.”
AI Dashcams to Mitigate Collision Expense
David Hayward, director of fleet management for ABM, is rolling out telematics and AI dashcams to address costs related to fuel, maintenance, and preventable collisions.
Hayward is working to leverage data to guide vehicle replacement timing, improve preventive maintenance compliance, and reinforce safe driving through targeted safety programs.
We’re also refining our fleet mix and replacement strategy to align with operational needs and lower total cost of ownership,” he said. “It’s all about taking a proactive, data-driven approach to long-term cost containment.”
Reviewing Oil Samples to Extend PM Intervals
Charlie Stevenson, vice president of fleet for Essential Utilities, is sampling oil on all diesel vehicles to determine whether to extend preventive maintenance intervals.
“As maintenance costs continue to increase, we noticed certain vehicles had greater maintenance costs,” he said.
Stevenson is also reviewing the timing of replacements to increase resale value and reduce TCO in certain market conditions. “We did learn some valuable lessons from COVID regarding extending useful life from a certain segment of our fleet, which is helping us manage TCO.”
Utilization Review Leads to Pool Vehicles
Like Fisher, Stevenson is reviewing vehicle utilization, which includes a deep dive into commuting mileage to the office and overall business miles on non-emergency response vehicles.
“As a result of that study, we have decided not to offer sole-use vehicles to certain employees in various groups in the organization. We will utilize more of a pool vehicle approach for certain vehicle needs.”
Managing Rentals & Parts Prices
Ernie Garcia, director of fleet and business systems for Gothic Landscape, Inc., is managing changes in fleet personnel and a considerable rental bill.
We are looking to understand how, why, and what we rent to understand what and when we should be buying. The result is better vendor pricing for equipment and vehicles.
With pending tariffs, Garcia is also preparing for challenges with parts. “We are assembling teams to have a primary focus on parts to help manage the cost increases,” he said.
