Businesses may be losing £2.4 billion a year collectively due to vans being off the road for repairs.
In a new study, van operators said that each of their vans spend four days a year on average off the road. With the cost of lost work estimated at £800 a day, that works out at an average of £3,200 lost revenue a year. Given that there are around 763,000 private sector vans in operation, that adds up to a total of £2.4 billion.
To cover their commercial needs, the research found that 36% of businesses have had to rent a van on a short-term basis in the past year, increasing the cost of vehicle downtime even more. Furthermore, 47% of businesses also incur fines or penalties when their vans are out of action for a week.
In addition to the cost implication, the reputation of a business is at risk when vehicles are off the road. Indeed, 63% of van operators said it would be difficult to keep their promises to customers if their vans were out of service for a week.
“Minimising time off the road could have a positive effect on the individual fleets as well as the UK’s economy,” Tim Bailey, the Fleet Director of Northgate, which commissioned the research, said.
“As we see the economic importance of vans grow, it is crucial that businesses understand the implications that van downtime can have on drivers’ productivity and on the fleet budget. Whether it’s caused by mechanical problems, incident damage or scheduled maintenance, van operators need to be prepared for downtime scenarios before they become too costly for the business.”