Red Government Fleet with star logo
MenuMENU
SearchSEARCH

The Top 5 Issues Facing Public Sector Fleet Managers

The key challenges ...

by Harold Marlar
February 22, 2019
Photo courtesy of Night Vision Depot.

test caption

4 min to read


1. Managing With Limited Resources

For the past several years, political subdivisions have been experiencing a shortfall in general tax revenues. For fleet operations, this has meant an ongoing shortage of vehicle replacement money, which has caused fleet and equipment inventory to steadily age and maintenance resources to be stretched thin. Government fleets are being forced to make tough decisions as to what to repair and how much to spend as they find it difficult to replace vehicles in a timely and predictable manner.

These budgetary difficulties were ex-acerbated this year as fleets were forced to stretch already tight budgets to compensate for the higher cost of fuel and the increased cost of steel, which has raised the cost of truck bodies and other upfits. While fleet managers are forced to keep costs down, end user departments are demanding higher levels of service. Fleet managers are forced to balance the need to maintain or enhance customer service levels and control costs, which are often in conflict with one another.

2. Recruiting & Retirement of Technicians

Not only is there a severe shortage of new technicians entering the work force, but there is also an impending exodus of veteran technicians; who are nearing retirement age. One fleet reports that 38 percent of its technicians will retire in the next five years. This is not an isolated situation. The coming deluge of retirements will result in a tremendous loss of institutional knowledge that will be difficult to replace with new hires.

The tax revenue shortfalls have impacted operating budgets, resulting in hiring freezes, salary freezes, and the elimination of vacant positions in maintenance operations. Salary freezes, in particular, are helping auto dealers lure away many of the more qualified mechanics with better wages and more comparable compensation packages. In response to the technician shortage, public sector fleets are struggling to improve mechanic productivity by redoing technician job descriptions and basing promotions and pay increases on performance and not seniority.

3. Keeping Pace With Vehicle Technology

With new-vehicle technological changes occurring each model year, it is becoming harder for public sector fleets to keep pace with more complex repair issues and diagnostics. New-vehicle technology requires continual technician training, but fleet managers find that there is limited budget to do so. This promises to become a greater issue in coming years as newer technologies such as 42-volt systems, hybrid powertrains, and more advanced electronics become widespread in mainstream fleet vehicles. Budget constraints mean that only the base minimum is being spent on updating diagnostic tools, making it hard to stay up-to-date.

4. Privatization & the Role of Fleet managers

The threat of privation is ongoing and ever present. Fleet managers are constantly being required by their management to show that they are competitive with private sector suppliers.

One factor driving privatization considerations are aging fleet operations facilities and the neglected investment in infrastructure. Budget limitations give consideration to outsourcing as a way to avoid major capital expenditures for new facilities or upgrade.

There is also a perception that the role of the public sector fleet manager is diminishing. Several fleet managers have told me that the power they have to influence the future of their fleets is eroding. One fleet manager offers an anecdotal illustration by saying his section used to be called Fleet Management but it is now called Fleet Operations. He says it is a sign of the times and that a growing number of fleet managers feel they have less input as to how their fleets are managed.

As governments seek to flatten their organizations, there is a trend to consolidate fleet manager functions. Whereas in the past, you may have had a police department fleet manager, a fire department fleet manager, and a public works fleet manager, there is a trend to consolidate those functions to a single municipal fleet manager, who manages all fleet operations. One benefit is that some fleet managers are assuming additional operational responsibilities, such as capital improvement management, sanitary/sewer operations, and facilities management.

5. Difficulty Complying With EPACT Mandates

A key difficulty is OEM withdrawal from certain alt-fuel segments, such as CNG and electric vehicle production, while hybrids are ineligible for EPACT credits. Many governments invested large sums to create an electric of CNG refueling infrastructure, which may now be under-utilized.

Subscribe to Our Newsletter

More Operations

Weekly cheat sheet reset button.
Operationsby Staff WriterFebruary 6, 2026

Is Fleet in a Reset Mode? | GovCast Shorts

On the go and want a snapshot of our top industry news? Check out Government Fleet's new video short of what's been happening.

Read More →
person at laptop taking survey.
Operationsby Staff WriterFebruary 6, 2026

Are You Paid Enough? Fleet Salary Study Open

Work Truck, Automotive Fleet, and Government Fleet have partnered to conduct a salary survey to determine the average salary for a fleet management position in commercial and public sector fleets.

Read More →
SponsoredFebruary 6, 2026

Hybrids: Electrification Without the Challenges

Hybrids bridge the gap between ICE vehicles and EVs, making them a smart choice for fleets that want to reduce emissions but aren’t ready to fully electrify. Hybrids, which are powered by internal combustion engines and electric motors, capture the benefits of electric power without the barriers many organizations find challenging.

Read More →
Ad Loading...
Image showing fleets dealing with budgets, data, and people for success.
Operationsby Nichole OsinskiFebruary 1, 2026

Fleet Performance Comes Down to People, Data, and Budgets

When it comes to the public sector, outcomes are usually driven by three areas fleet leaders can actually control, but it’s combining these into one operating model where operations see the most success.

Read More →
SponsoredFebruary 1, 2026

Why One Car Wash Wasn’t Enough For This Fleet

Limited wash locations can increase travel time, fuel costs, and admin work for fleets. Here’s how one government fleet expanded access and simplified operations.

Read More →
fleet image of check report and words cheat sheet.
Operationsby Staff WriterJanuary 30, 2026

Leading Fleets Lessons, Autonomous Policing, and the BEV Reality Check | The January Dispatch

To keep you in the loop, this episode is a quick reset on what mattered during the past month, from how to turn award season into a practical self-audit to what “leadership” looks like.

Read More →
Ad Loading...
image with the words read learn earn and a BBM star.
Operationsby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches New Rewards Program for Industry Professionals

The new rewards initiative, B2X Rewards, is a gamified incentive program designed to increase engagement across BBM’s websites, eNewsletters, events, and TheFleetSource.com.

Read More →
Government Fleet's weekly cheat sheet for the end of January.
Operationsby Staff WriterJanuary 29, 2026

Cold Weather, EV Reality Checks, and What Fleet Leaders Are Doing Next | GovCast Shorts

On the go and want a snapshot of our top industry news? Check out Government Fleet's new video short of what's been happening.

Read More →
Image of man applying for leading fleets.
Operationsby Nichole OsinskiJanuary 28, 2026

Your Leading Fleets Application Can Do More Than Win an Award

Hear directly from this year's judges on what separates standout submissions and use their tips to submit a clearer, stronger application.

Read More →
Ad Loading...
A DASH electric bus parked on a city street in Alexandria, Virginia.
Operationsby News/Media ReleaseJanuary 27, 2026

City of Alexandria's DASH Partners with ABM to Support EV Bus Charging Infrastructure

DASH is expanding its electric bus operations in Alexandria, Va., with new in-route charging infrastructure.

Read More →