Clark: Strategic decisions for fleets in uncertain times

In today’s economic landscape, uncertainty looms large over most businesses, forcing them to make critical decisions about their organization’s future. For our industry, this uncertainty is palpable, driven by factors such as tariffs on imports from Mexico and Canada as well as other offshore sources, and intricate supply chain dynamics that span North America.

Here’s the reality: Over 40% of Class 8 trucks are currently imported from Mexico, and potential tariff increases threaten to raise the prices of these trucks significantly. Since most fleets have small and/or shrinking margins, this increase will be difficult to absorb, especially for smaller fleets. This poses a significant burden on fleet operators. In order to mitigate impending costs, they will have to plan proactively. In addition, the intricate nature of our supply chains, with assets crossing borders multiple times during production, adds even more complexity and risk.

See also: For-hire market sees strong start to 2025

Steps to manage business during uncertain times

At a recent NationaLease meeting, Ken Davis, founder of Greentree Advisors, provided insights on how to navigate business during times of uncertainty. His recommendations are essential for those organizations looking to thrive, despite volatility.

1. Seek insight: Stay informed about industry trends, regulatory changes, and economic forecasts that impact your business.
2. Leverage experience: Draw on your team’s collective experience and expertise to devise informed strategies.
3. Communicate effectively: Internally and externally communicate uncertainties and challenges transparently. This fosters trust and allows stakeholders to align expectations.
4. Embrace pragmatism: View uncertainty as an opportunity to innovate and adapt pragmatically to changing conditions.
5. Develop scenarios: Outline “most likely” scenarios while acknowledging areas of uncertainty. This prepares you to respond swiftly to various outcomes.
6. Create a plan: Formulate a comprehensive plan that includes contingencies for different scenarios. This proactive approach minimizes risks and maximizes readiness.
7. Manage risk: Identify and mitigate risks associated with tariff changes, supply chain disruptions, and market fluctuations.
8. Understand customers: Stand out by deeply understanding your customers’ needs and preferences. Tailor your offerings to address their specific requirements better than your competitors.

Strategic planning for the future

Moving forward, it’s crucial for fleet operators to conduct a thorough analysis of their current fleet operations. This includes projecting fleet profiles for the upcoming years (2026-2028) to anticipate maintenance needs, replacement cycles, and potential impacts of tariff increases.

Understanding where growth opportunities lie and how to capitalize on them will differentiate proactive companies from their competitors. It’s not just about surviving uncertainty but thriving by strategically positioning your business for long-term success.

While uncertainty may seem daunting, it also presents opportunities for those willing to adapt and innovate. By following strategic guidelines, like those recommended by Ken Davis, organizations can navigate these turbulent times with confidence and resilience.

That means that now is the time to shift from a reactive to a proactive posture. Evaluate where your business stands today; identify areas where you can add value; and develop flexible, forward-looking strategies. The companies that embrace change, anticipate disruption, and stay closely aligned with customer needs will be the ones that not only endure—but lead—the next era of fleet management.