2017TELEMATICSBENCHMARKREPORT
Survey name lock-up
NZ
Foreword
This report presents the findings of a 2017 survey completed by fleet management professionals in New Zealand that operate in trucking and construction, the largest share of industry segments represented in this survey, as well as manufacturing, professional services, energy and other industries. The survey results were compiled by an independent research group. Each respondent has experience in fleet operations, the majority as owners, managers, or in maintenance or administrative office occupations.
KEY THEMES
Financial considerations are a primary issue, with most organisations mentioning operational costs and revenue growth as their principal challenges within the next year.
Payroll is identified as the operating expense that leads all others by a significant margin.
Technology is a vital component in these activities — and is rapidly becoming fundamental to everyday operations.
Most survey respondents look forward to benefiting from increased opportunity within the next months, with many indicating plans to increase their capital expenditure to meet demand.
Staffing shortages continue, with firms experiencing pressure in finding and developing drivers and operators to satisfy their workforce needs.
2017 New Zealand Telematics Benchmark Report 2
The profit and loss sheet will drive 2017 business decisionsWhen asked to identify their top business goals for the next year, costs and profits were cited by a combined 81 per cent of respondents.
TOP BUSINESS GOALS FOR 2017
13%
Reducing operational cost
Increasing profits
Improving driver safety
Expanding customer base
Retaining customers
Adding new products and services
Improving vehicle safety
Expanding driver workforce
Improving driver retention
None
Other
15%
31%
40%
21%
41%
12%
11%
3%
1%
2%
Technology offers a distinct benefit in cost
reduction. Amongst New Zealand organisations
that have implemented telematics, 46 per cent
of respondents reported seeing a measurably
positive effect on their expenditure for fuel,
with cost decreases ranging from 5 to as much
as 30 per cent.
(Respondents could select more than one answer)
2017 New Zealand Telematics Benchmark Report 3
54%Payroll
34%Equipment/vehicle
maintenance
33%Purchasing new
equipment/vehicles
17%Other
2%Materials
4%Business software
15%Fuel
1. “New Zealand’s truck driver shortage,” Noted, April 8, 2016. http://www.noted.co.nz/money/investment/new-zealands-truck-driver-shortage/
(Respondents could select more than one answer)
2017 New Zealand Telematics Benchmark Report 4
Wages are the top cost for organisations in 2017When asked to identify the largest operating expense, more than half of all respondents (54%) cited payroll. Next was equipment and vehicle maintenance (34%).
LARGEST EXPENSE AREAS
The slow increase in New Zealand’s pool of commercial
truck drivers relative to the escalating demand for them is a
major contributor to upward wage pressure; new drivers are
not entering the workforce in numbers sufficient to keep up
with need.
Since 2000 the volume of freight carried on the nation’s
highways has increased 60 per cent, yet the number of
Class 5 (commercial heavy truck driver) licences issued has
seen only a 10 per cent rise.1
Hardware and human capital lead the list of investment plansScheduled financial outlay for this year concentrates on fleet vehicles and staff.
PLANNED INVESTMENTS FOR 2017
46%
Upg
radi
ng fl
eet
42%
Fin
ding
, ret
aini
ng a
nd d
evelo
ping t
alent
37%
Impr
ovin
g cu
stom
er ex
perie
nce
33%
Inte
grat
ing
tech
nolo
gies a
nd sy
stems
27%
Impl
emen
ting
tech
nolog
y for re
gulatory compliance
24%
Mor
e effi
cien
t GPS
tr
ackin
g
22%
Bra
nd a
ware
ness
16%
Exp
andin
g fl eet
5% N
o inv
estments planned
Oth
er 1%
(Respondents could select more than one answer)
2017 New Zealand Telematics Benchmark Report 5
Investing will be spread over a range of categories but a
combined total of 88 per cent of respondents will allocate
disbursement toward what might be called the moving parts –
the fleet and personnel.
56% 35%Plans for increasing fleet size overwhelmingly favour the purchase of new
units: 71 per cent of respondents said they will “buy more new vehicles,” 27
per cent will “buy more used vehicles,” and “rent more vehicles” is the option
selected by 24 per cent.
CHANGES BEING MADE TO FLEET SIZE OVER THE NEXT YEAR
Plans call for larger fleets, more equipment in 2017Slightly more than half of organisations surveyed intend to expand their operating capacity in the next 12 months.Those who intend to augment their fleets say that the number one reason for doing so is to answer an increased demand for their services. Others report a need to replace older equipment, and slightly less than half of respondents anticipate that domestic market growth will provide a positive effect.
Increasing No change
9%No change
2017 New Zealand Telematics Benchmark Report 6
Infrastructure investment committed toward improving the conditions
that beset New Zealand drivers, is expected to grow at an average rate
of 4 per cent a year, reaching $28 billion by 2025. That is lower than the
global annual average of 6-7 per cent.2
Congestion is the most challenging issue faced by trucking organisations—and there’s little
they can do in terms of improving traffic flow—but telematics may provide some relief
through real-time rerouting to avoid choke points or bottlenecks.62%
TRAFFIC CONGESTION
20%ROADWAY DESIGN (LENGTH OF LANES, ACCESS TO
MOTORWAYS/INTERSTATES)
2%6%
Heavy traffic is an irritation for drivers, dispatchers and managersWhile the obstacles that impede progress for survey participants include aging roads and bridges (15%), ongoing construction (19%), and road or traffic routing that is poorly designed (20%), these annoyances are slight compared to traffic congestion, which vexed 62 per cent of responders.
MOST CHALLENGING INFRASTRUCTURE ISSUES
19%CONSTRUCTION
PROJECTS
7%INADEQUATE SIGNAGE AND
SIGNALS
15%AGING ROADS AND BRIDGES
TRUCK STOPS/SERVICE STATIONS
ACCESS TO FUEL
13%NONE
NOT EXPERIENCING ANY CHALLENGES
(More than one response could be selected by a participant)
2017 New Zealand Telematics Benchmark Report 7
2. Outlook to 2025: New Zealand’s infrastructure investment spend. PricewaterhouseCoopers, 2017. http://www.pwc.co.nz/publications/central-government/outlook-to-2025-new-zealand-infrastructure-investment-spend/
Approximately 4 out of 5
organisations (79%) either currently
use telematics or have plans to do
so in the next year.
The rise of telematics in New
Zealand is notably rapid given that
the nation’s trucking companies
are typically small, family-owned
businesses—which generally
are not early adopters of new
technology. More than 80 per cent
of New Zealand carriers operate
five or fewer trucks.3
60%
9% 10%21%
Yes,
acro
ss a
ll ve
hicl
es/a
sset
s
Yes,
whe
n pr
ovid
ed b
y ve
hicl
e/eq
uipm
ent m
anuf
actu
rer
No,
and
no
imm
edia
te p
lans
to d
o so
No,
but
I pl
an to
in th
e ne
xt y
ear
3. “New Zealand Trucking Industry Shares Global Challenges in Recruiting Drivers,” Women in Trucking, 2016. http://www.womenintrucking.org/index.php?option=com_content&view=article&id=176:new-zealand-trucking-industry-shares-global-challenges-in-recruiting-drivers&catid=24:ellens-blog&Itemid=127
2017 New Zealand Telematics Benchmark Report 8
In a competitive market, telematics are indispensableFleet telematics are following the path traced by the Internet in the last 30 years—and the telephone more than 100 years earlier. Like these, telematics has progressed from technological phenomenon to vital management and communications tool.
ORGANISATION USING A TELEMATICS SOLUTION
Vehicle/equipment tracking
Speed
Distance driven
Hours of service/driver hours
Proof of service/jobs completed
Maintenance
Driver performance
Idling
Engine hours
Fuel usage
Harsh braking
Other
46%
46%
56%
65%
37%
32%
23%
21%
15%
12%
2%
79%
What they’re watching: telematics data monitoring and analysisOrganisations that use or intend to use telematics are most interested in applying the technology for tracking location and speed.
WHAT ORGANISATIONS MONITOR WITH TELEMATICS
Respondents identified “peace of mind knowing where vehicles are” as the top
benefit (79%) afforded by telematics solutions, followed by “improved driver
behaviour” (42%) and “more efficient routing and dispatching” (32%).
(Respondents could select more than one answer)
2017 New Zealand Telematics Benchmark Report 9
How deep does this technology go?With most New Zealand organisations that are already relying on telematics (69%), its use extends to the field nearly as much as in the back office. The application of telematics has been widely implemented at the vehicle or job site level.
OFFER MOBILE DEVICES TO DRIVERS FOR FLEET MANAGEMENT
No, employees can bring their own device and link to company systems
7%
No, but we plan to in the next year
5%
No, we don’t use mobile devices for fleet management
25%
Yes
63%Mobiles rule:
3 out of 4 survey
respondents (68%)
offer mobile devices
to drivers or plan
to do so within the
next year.
Those who offer mobile devices to their drivers
or operators report that the greatest benefits are
“more direct communications” (74%) and “easier
GPS/fleet tracking” (60%).
2017 New Zealand Telematics Benchmark Report 10
For many, telematics provides measurable fuel savingsSurvey respondents indicated “reducing operational cost” as their number one business challenge in 2017, and they look closely at which practices and technologies can help them achieve this objective. Many reported that telematics technology delivered positive results in helping to control a large operating expense.
HOW MUCH FUEL COSTS HAVE BEEN REDUCED SINCE IMPLEMENTING TELEMATICS
report 5-10% fuel savings
30%report 11-20% fuel savings
14%report 21-30% fuel savings
2%46%
report fuel savings
Percentage of respondents
Almost half (46%) of survey participants said that after adding
telematics their organisation has reduced fuel expenses.
2017 New Zealand Telematics Benchmark Report 11
Telematics promotes efficiency, but also shows promise in improving driver safetyAlthough organisations who use telematics cite operating efficiencies, peace of mind in knowing the location of vehicles, improved driver behaviour and other benefits as most important to them, a reduced number of accidents is another advantage the technology has provided to many.
Nearly a quarter of organisations with telematics
have lowered their rate of accidents and attribute
this to their use of a telematics solution.
FEWER ACCIDENTS AS A RESULT OF TELEMATICS
23%YES
2017 New Zealand Telematics Benchmark Report 12
Anticipating staff requirements: still not an exact scienceIn general, New Zealand fleet operators are not applying high-tech approaches in staffing projections. Many rely on paper files, experience or intuition.
HOW THEY CURRENTLY FORECAST HIRING/BUSINESS NEEDS
36%Manually pulling records/paper-based processes
23%Not currently forecasting
19%Guessing
18%Tool for big data analysis
11%Other
This lack of reliance on more precise forecasting tools is unusual in an industry
where hires are predominantly not casual or part-time but engaged on a
permanent basis.
These survey respondents report that 64 per cent of their drivers are full time,
with hourly drivers at only 22 per cent and for-hire/contingent drivers at 1 per cent.
The preponderance of full-time, permanent drivers and operators
(as opposed to part-time or contingent workers) correlates with
an older, more experienced workforce in these occupations. The
average age of a New Zealand commercial trucker is 53.4
4. “New Zealand Trucking Industry Shares Global Challenges in Recruiting Drivers,” Women in Trucking, 2016. http://www.womenintrucking.org/index.php?option=com_content&view=article&id=176:new-zealand-trucking-industry-shares-global-challenges-in-recruiting-drivers&catid=24:ellens-blog&Itemid=127
2017 New Zealand Telematics Benchmark Report 13
Staff shortages remain a problemNew Zealand is highly dependent on trucking to move an increasing volume of goods to distribution centres and individual retail locations. This reliance on truck traffic and a small pool of skilled drivers places pressure on owners and hiring managers. Skilled equipment operators are also in demand.
EXPERIENCING A DRIVER SHORTAGE
54% YES
46% NO
When management were asked
to indicate how they address staff
shortages, 48 per cent selected
“increasing pay.” Another 41
per cent reported “developing
educational/training programs”
and 32 per cent, “offering better
benefits,” followed by “hiring
freelance/contingent drivers” (30%).
New Zealand’s National Road
Carriers group says the sector has
been short of drivers for a decade.
This problem is anticipated to get
worse as the amount of freight is
predicted to increase up to 75 per
cent in the next 20 to 30 years.5
5. “Trucking Sector Begging for New Drivers,” New Zealand Herald, January 26, 2016. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11579723
2017 New Zealand Telematics Benchmark Report 14
Which workers are employers most keen on hiring?Drivers are expected to comprise the largest numbers of new hires in 2017, as organisations look to meet their current and projected workload.
WHAT ROLES ORGANISATIONS EXPECT TO INCREASE IN THE NEXT YEAR
54%Drivers
27%
None
12%
Dispatchers
12%
Maintenance managers/professionals
6%
Technology experts
5%
Fleet operations
5%
Other
11%
Compliance professionals
More than half of organisations (54%)
intend to increase staffing of drivers
and operators, more than four times
as many responses for any other job
classification, including all types of
office personnel.
(More than one response could be selected by a participant)
2017 New Zealand Telematics Benchmark Report 15
How organisations deal with the demand cycleNearly every operation experiences unpredictable changes in the amount of work they have at a particular time, as slow periods alternate with new opportunities. But almost half (45%) say they make no adjustments to accommodate for these variables.
HOW THEY MANAGE FLUCTUATIONS OF INCREASED DEMAND
Only 55 per cent of organisations put in to practice one or several
actions to compensate for the periods of high and low activity.
We don’t do anything different when demand increases
45%Outsource
trucks/equipment
25%Outsource drivers/
equipment operators
23%More efficient
routes for drivers
16%
More reliance on technology/telematics
9%Other1%
Adjusting for demand cycles is difficult in part because at present
the New Zealand trucking industry has a serious overcapacity
problem. Approximately 40 per cent of trucks traveling its
highways are making a return trip carrying nothing but air, or as
truckies express it, “yacht fuel.”6
6. “‘Yacht Fuel’ is the Most Common Load Carried by Truckies,” Business Day, April 9, 2017. http://www.stuff.co.nz/business/money/91316728/yacht-fuel-is-the-most-common-load-carried-by-truckies
(More than one response could be selected by a participant)
2017 New Zealand Telematics Benchmark Report 16
Survey overview and methodologyNew Zealand
The 2017 Teletrac Navman Telematics Benchmark Survey is based on responses from more than 1,200 fleet operations and fleet management professionals from around the world. This report affords a view into best practices and trends in telematics and fleet management. Of the total survey respondents, 212 who indicated that they are based in New Zealand provided the data used to produce the 2017 New Zealand Telematics Benchmark Report. Results may not amount to 100 per cent due to questions with multiple selections. For reporting purposes, all statistical values have been rounded to the nearest whole number.
TYPE OF FLEET OPERATIONS INDUSTRIES REPRESENTED
FLEET SIZE (NUMBER OF VEHICLES)
1-9
10-24
25-50
51-100
101-500 9%
11%
19%
24%
34% 59% >105,000 kilometres
11% 75,001 to 105,000 kilometres
11% 50,001 to 75,000 kilometres
12% 30,001 to 50,000 kilometres
6% 15,000 to 30,000 kilometres
1% <15,000 kilometres
The majority of respondents represent fleets that drive over 105,000 kilometres per year.
Other
Private fleet
For-hire fleet
Government agency
TOTAL ANNUAL MILEAGE BY FLEET
500+ 3%
30% Construction
22% Transportation
4% Manufacturing
4% Professional services
4% Technology
3% Education
3% Energy/utilities
3% Leisure/hospitality
2% Government
2% Health care/pharmaceutical
2% Retail
1% Mining, oil and gas
1% Nonprofit
1% Telecommunications
18% Other80%
8%5%
8%
2017 New Zealand Telematics Benchmark Report 17
182017 New Zealand Telematics Benchmark Report
Teletrac Navman is a leading software-as-a-service (SaaS) provider leveraging location-based technology and services for managing mobile assets. With specialized solutions that deliver greater visibility into real-time insights and analytics, Teletrac Navman helps companies make better business decisions that enhance productivity and profitability. Its fleet and asset management technology uncovers information that would otherwise go unseen, helping customers reduce risk and confidently move their business forward with certainty. It tracks and manages more than 500,000 vehicles and assets for more than 40,000 companies around the world. The company is headquartered in Glenview, IL, with additional offices in the United States, United Kingdom, Australia, New Zealand and Mexico. For more information visit TeletracNavman.co.nz.
United States
2700 Patriot Boulevard, Suite 200
Glenview, IL 60026 · USA
Tel: [+1] 866.527.9896
Australia
Ground Floor, 16 Giffnock Avenue
Macquarie Park NSW 2113
Sydney, Australia
Tel: [+61] 2 9886 8500
Mexico
Av. Eugenio Garza Sada No. 3820 Piso 6
Colonia Mas Palomas
C.P. 64780 · Mexico
Tel: [+52] 81 8248.4600 ext 1001
New Zealand
7-11 Kawana Street
Northcote, Auckland 0627
Tel: [+64] 0800 447 735
United Kingdom
Keele University Science Park
Innovation Centre 2
Staffordshire, ST5 5NH · UK
Tel: [+44] 0 1782 55 79 50