Despite bearish predictions by some, the U.S. Commerce Department released that the U.S. economy grew 2.1% in Q4 2016. That’s a positive, but what about the months and years ahead? Last month, Stephen Hetzel, a government purchasing industry expert from BidPrime, shared his projections on the impact a Trump presidency will have on government purchasing in this video report.
We all understand the impact public sector procurement has throughout the economy. From sole proprietors to Fortune 500 companies, the buying habits of U.S. governments are significant. If the U.S. reaches even close to the 4% annual growth which Trump is targeting, business and consumer confidence will rise further. Correspondingly, government purchasing will grow. When this plays out, watch the dominoes fall…
What does all of that have to do with fleet management and services? On their website, Spireon provides an excellent description of the industry:
“Put simply, fleet management is the optimization of costs, risks and efficiency in fleet operations. Many organizations rely on fleet managers to control costs, maximize profitability, and mitigate risks of their fleet vehicles. Fleet managers touch many aspects of fleet operations, but fleet management can be summarized into five main fields: 1) Operational Cost-Effectiveness, 2) Vehicle Maintenance, 3) Driver/Workforce Management, 4) Vehicle Safety & Compliance and 5) Operational Efficiency.”
With growth, noted in the beginning of this analysis, comes the increasing requirement to move goods, services, and people. All of that has to be effectively managed. Governments, not unlike the private sector, have the same needs to monitor, measure, and report. Growth? In a report released by MarketsAndMarkets, Fleet Management Market worth 27.90 Billion USD by 2021, the title is sufficient to grab our attention. Within, they note, “The fleet management market is estimated to grow from USD 9.54 Billion in 2016 to USD 27.90 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 23.9%.” For certain, intriguing and encouraging projections.
The St. Louis Business Journal recently provided one fresh example of the investment in fleet management effecting a local business. As rightfully noted, buildup within fleet management has a resulting significance within other industries, and vice versa.
So, what’s been going on in terms of government bid requests and purchases within the fleet management spectrum? Over the past 12 months, U.S. governments have submitted 447 requests for “fleet“ services, solutions, and equipment. Upon expanding our examination to the previous 3 years, the U.S. public sector tendered 390 solicitations specifically for “fleet management“ tools.
Small sample of some of the data:
Sample active bids / RFPs
Fleet & Fleet Management
As the economy grows, with the rate to be determined, fleet equipment, services, and solutions, along with fleet management, will be in demand. U.S. governments have recognized the need for some time and the current bid request activity proves that point. Is your business poised and positioned to take advantage of the public sector opportunities and partake of the immense future in the industry?
For a review of the bid requests, associated documents, and applicable historical data, please visit BidPrime or call us at 888.808.5356.