A cost/benefit analysis can add up to huge savings when purchasing new equipment according to one industry veteran.
“Fuel economy is the big decider in spec’ing today,” David Williams, vice president of equipment for Knight Transportation, told CCJ Fall Symposium attendees during a workshop on the 21st Century Buying Cycle. For example, a truck running 110,000 miles per year, that gets 6.3 mpg, will burn $279,365 in fuel at $4 per gallon over a four-year period. “If you improve fuel economy to 6.7 mpg your cost drops to $262,686,” he said, a savings of more than $16,000.
But it’s important to do your own testing to make sure your investment in fuel-saving technology is a wise one, he cautioned.
“We put skirts on all of our trailers and saw an immediate impact,” he said, but with some aero devices, “the difference is statistically insignificant.”
Your type of operation also matters, he said. If you run on highway, aerodynamics are a big deal. If you’re not doing high speeds, you probably need to look at rolling resistance instead. In that case, tire maintenance costs may increase due to softer tires, “so you need to do your own math,” he said.
Knight’s other equipment buying considerations:
• Maintenance and tires. Assuming an average cost per mile of .04 cents, maintenance costs over four years on a truck running 110,000 miles per year will run $17,600. “Reduce maintenance costs to .03 cents per mile and it only drops to $13,200,” Williams said. “It’s still $4,000 but compared to the fuel savings it is less significant.”
