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Demand for company vehicles set to increase

10 December 2020

The Covid-related restrictions imposed throughout 2020 have forced companies across the UK to alter their business models for survival. 

In September 2020, after six months of these restrictions, Driving for Better Business carried out two surveys to determine scope of the effects of coronavirus on businesses. One contacted 150 owners of small-to-medium enterprises (SMEs) with a turnover of less than £10 million who hire people to drive for work, and the other contacted 152 board-level decision-makers in larger firms. 

Whilst there was heavy concern among a large number of these companies, there was still a hopeful degree of optimism with 41% of large firms and 21% of SMEs, who still expect to grow.

It was made clear by this research that fleet operating costs are a key concern, as one of the biggest costs of business. 

Due to the recent restrictions additional pressure has been put on businesses by consumers, with increased demand for home delivery. Some businesses have had to expand their fleets to keep up, whilst others who may not have offered home delivery before have had to change their business models.

This means that good fleet management is more crucial than ever to monitor driver behaviour and reduce operational costs. The cost of servicing, maintenance, tyres, fuel, damage repairs and vehicle insurance are all directly related to how businesses manage their fleets and fleet drivers.

In this time of economic uncertainty, financial strength is more crucial than ever to the survival of businesses.  

Perhaps unsurprisingly, the results of the surveys showed that SMEs were more inclined to maintain their current fleet requirements, whilst 56% of larger firms expect to need more company cars.

Similarly, van fleets 50% of large firms and 17% of SMEs expected to increase in size - both figures being higher than the number of companies expecting a decrease.

We are pleased to be able to support our customers with the management of their fleets during this period of uncertainty. If you have any questions or would like the support of our expert fleet managers, please do not hesitate to contact us at email info@marshall-leasing.co.uk or call us on 01480 414541.

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