Government Fleet Logo
MenuMENU
SearchSEARCH

The Top 5 Issues Facing Public Sector Fleet Managers

The key challenges ...

by Harold Marlar
February 22, 2019
The Top 5 Issues Facing Public Sector Fleet Managers

test caption

test credit

4 min to read


Ad Loading...

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.

Ad Loading...

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.

Ad Loading...

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

Women working in technician roles and another woman leading a team.
OperationsMarch 3, 2026

Women in Fleet: Leadership, Innovation, and Industry Evolution

Fleet leadership has moved beyond the shop floor into a role shaped by higher expectations and constant change, and women have helped drive that evolution. But how has that shift happened, and what does effective leadership look like in operations today?

Read More →
image showing several awards with the Government Fleet logo.
Operationsby Nichole OsinskiMarch 3, 2026

Deadline Extended: Government Fleet Awards

Submissions for most awards close Monday, March 9; review award categories, confirm eligibility and requirements, and wrap up your entry before the deadline.

Read More →
SponsoredMarch 1, 2026

3 Ways Fleet Tech Builds Public Trust

Managing a state or local fleet comes with levels of accountability private companies don’t have. Read how modern fleet technology helps elevate visibility and safety to strengthen community trust.

Read More →
Ad Loading...
SponsoredMarch 1, 2026

Modernize Motor Pool Operations Without Increasing Cyber Risk

Still managing your motor pool with spreadsheets and manual approvals? Loyola University replaced outdated processes with automated fleet management, eliminating overtime and saving up to $50,000 annually. See how they did it.

Read More →
Operationsby Staff WriterFebruary 27, 2026

Insight and Advice from Past Winners | The February Dispatch

Revisit a handful of February pieces that still feel relevant, from what top fleet leaders kept consistent over time, to what electrification progress looks like when it’s built on coordination and buy-in, to why associations continue to be a real advantage for public sector fleets.

Read More →
Fleet manager of the year with text 'Leadership Insight.'
Operationsby Staff WriterFebruary 26, 2026

Reflection and Insight from Public Sector Fleet Manger of the Year Winners

This year's Public Sector Fleet Manger of the Year judges relfect on their own industry expereince and share some leadership insights.

Read More →
Ad Loading...
SponsoredFebruary 26, 2026

MOVING ON FROM DEBATE: A Guide for Fleet Managers Who Just Want To Get Electrification Done

Fleet managers are done with the debate—and focused on execution. Learn how to build a practical electrification strategy that aligns infrastructure, operations, and financing while keeping costs controlled and deployment scalable with support from Blink Charging. Discover how smart planning today positions fleets for long-term performance and ROI.

Read More →
Drone-in-a-box docking station with a quadcopter on top, branded SkyfireAI, positioned outdoors on a concrete surface.
Operationsby News/Media ReleaseFebruary 25, 2026

Ohio Advances Nation’s First Statewide Drone First Responder Program with Selection of Nine Public Safety Agencies

Ohio is moving forward with a first-of-its-kind statewide Drone First Responder pilot, giving nine public safety agencies new tools to improve emergency response times and situational awareness.

Read More →
The BBM logo and the Fleetsource logo.
Operationsby Staff WriterFebruary 25, 2026

Bobit Business Media Expands Fleet Technology Platform with Acquisition of Roadz Partner Portfolio

By combining media authority with marketplace enablement, BBM aims to create a more connected environment where fleets can confidently evaluate solutions and technology companies can accelerate responsible growth.

Read More →
Ad Loading...
Operationsby Jeanny RoaFebruary 25, 2026

Electrifying Progress and Building Community: Joseph Mattox's Road to the Public Fleet Hall of Fame

Driven by Community and Sustainability: Mattox’s Approach to Modernizing Municipal Fleet Operations

Read More →