Automotive Fleet, January 2021

AUTOMOTIVE FLEET I JANUARY 2021 30 ARI going to innovate for the core whether its through technology services or just around the idea of getting this mobility set up where we have different options for our customers Were also going to invest for adjacencies What technologies or process improvements can we develop to help our customers So with a very committed group of resources Holman Strategic Ventures is about making the experience of what we do today as good as it can possibly be based on the customer feedback but also looking at tomorrows transportation mobility space and making sure were evolving to meet those needs tomorrow too AF AS THE FLEET MANAGEMENT INDUSTRY INCREASINGLY ADDS EVEN GREATER OPERATIONAL EFFICIENCIES DOES IT CREATE AN OPPORTUNITY TO FURTHER RIGHT SIZE FLEETS TO OPERATE WITH FEWER VEHICLES CONROY How we do business is changing We see it in our daily lives every day One example is connecting virtually which I think provides tremendous opportunities that will continue for the foreseeable future You can do things much more rapidly Virtual communications allows you to have conversations much more easily Weve been able to interact with our customers in a very effective manner that were happy to continue doing But you still have to have the personal face to face relationship whether its at a conference or it is meeting with a customer or prospective customer This is still important When we think about how our workforce is going to be aligned going forward thats top of mind for us From the fleet customers perspective youre going to see people become much more efficient in how they run their businesses Now many of the customers we do business with across our platforms are companies that require vehicles to do the job Certainly youre going to see a focus on that We have already seen customers say their businesses need to run more efficiently and ask us what are the opportunities for us to take cost out of the fleet Theres really two basic ways to do that Either operate those vehicles at a lower cost which is very difficult to do because by and large in partnership with all of us in our industry weve done a very good job of driving cost out Or option two is to have fewer vehicles So pay less for the ones you have or have less of them I think theres absolutely going to be opportunities for fleets to right size more so than they may have done to this point Weve seen a little bit of that But we shall see how far that does go AF IS FLEET MANAGEMENT A GROWING INDUSTRY OR HAS IT PLATEAUED WHERE IS FUTURE GROWTH IN FLEET GOING TO OCCUR CONROY I think were in a growth industry Certainly theres an evolution in the skillset thats needed to operate a fleet and a business But for me theres one certainty Fleet operations is going to be a key requirement to the growth and success of businesses Just look around and you see the movement of goods and people is growing not declining Now thats not true of every industry Fleet is absolutely a growth industry and its something were going to build our business around Knowing that we believe our purpose is to serve those customers who are continuing to evolve and grow If theres a message to any fleet operator it is to position yourself as a true business partner I see companies becoming more and more receptive to understanding internally that the fleet manager must be viewed as a trusted partner in how a business is run Fleet is not just an expense line There are certain industries such as the last mile delivery and package good delivery that are going to continue to proliferate I believe theres great opportunity for us as an industry for us as individuals and certainly for us here at Holman Enterprises to continue to evolve Our sole objective at Holman is to be there to serve the customers we have today and for those that are going to emerge in the future To me were going to be on the frontlines of both reacting and helping to change as an industry As an example I think of companies weve established a partnership with such as Lordstown Motors Heres a new manufacturer who has figured out engineering and manufacturing but they need partners that can help them sell service and maintain their vehicles that are going to be in the service space Holman is a very important cog in the supply chain of companies that will be emerging in our new economy AF HOW QUICKLY DO YOU THINK WIDESPREAD ELECTRIFICATION OF THE FLEET INDUSTRY IN THE U S IS GOING TO TAKE CONROY My answer used to be its not something I see happening anytime soon But youve got to follow the dollars and follow the investments Youre seeing significant investments in this space I wouldnt put a specific time frame on it but its coming It is going to affect how we do business but the infrastructure has to be there to support it I dont think there is a question that EVs will eventually play a significant part in fleet operations around the world but the speed with which we get there is still a question a lot of people are asking AF During his 25 year career with Holman Enterprises Chris Conroy has held a number of leadership positions including president of ARI and most recently serving as president and CEO of Holman Business Services In his new role as president and chief operating officer Conroy will be responsible for leading all Holman Enterprises operating companies