The First Word With Phil Russo: Never A Better Time To Be A Fleet Manager

In his recent State of the Union Address, President Obama declared that innovation will lead the way toward a cleaner environment and a United States less dependent upon foreign oil supplies for its energy. I think this presents a tremendous opportunity for fleet managers and for NAFA.

For those who missed it, Obama’s remarks included the following statements:

"Nowhere is the promise of innovation greater than in American-made energy. Over the last three years, we’ve opened millions of new acres for oil and gas exploration, and tonight, I’m directing my Administration to open more than seventy-five percent of our potential offshore oil and gas resources."

"But with only two percent of the world’s oil reserves, oil isn’t enough. This country needs an all-out, all-of-the-above strategy that develops every available source of American energy – a strategy that’s cleaner, cheaper, and full of new jobs."

"We have a supply of natural gas that can last America nearly one hundred years, and my Administration will take every possible action to safely develop this energy. Experts believe this will support more than 600,000 jobs by the end of the decade."

"What’s true for natural gas is true for clean energy. In three years, our partnership with the private sector has already positioned America to be the world’s leading manufacturer of high-tech batteries. Because of federal investments, renewable energy use has nearly doubled. And thousands of Americans have jobs because of it."

"I will not walk away from the promise of clean energy...I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here."

"(It’s time to) double-down on a clean energy industry that’s never been more promising."

So how does this present opportunities for fleet managers?

First of all, the President will be reminded by NAFA that fleets were the first adopters of clean energy initiatives. For some twenty years now, NAFA has been working with legislators and rule-makers to ensure regulations could actually be implemented in real-life fleet scenarios. NAFA will continue to work with elected leaders in Washington, as well as with our partner associations, to help President Obama realize his goal of increased use of clean energy. This is our opportunity to promote the role and value of fleets in general, and fleet managers specifically, to the highest authorities in the country.

Second, because fuel is the second largest fleet expense behind depreciation, its management requires careful scrutiny to take every opportunity for minimizing costs and mitigating risk. Of course, this is made more difficult by the sheer number of available clean energy sources. This means today’s fleet managers must know about and scrutinize every energy source to determine which is best for their operations. Looked at another way, this is your opportunity to prove your expertise to your employer by showing you are on top of this issue and know about every energy source and how it can apply to your fleet operations. (A great place to start your education on this subject is NAFA’s Fuel Management Guide, which covers every fuel type, both conventional and alternative. It’s available in the NAFA Store at www.nafa.org/store.)

Finally, regardless of what energy source is ultimately chosen by a fleet, use of clean energy naturally means changes for how that fleet operates. And with changes come opportunities. A new source of vehicle energy could mean a new type of vehicle put in service. A new energy source could change how your drivers do their work, how and where they fuel up, and how your business is conducted. It may mean that current cargo space is sacrificed for fuel tanks. It certainly will mean that those who operate their own garages will need to re-train their staffs and re-tool their garages.

In short, clean energy will mean change and you as the fleet manager have the opportunity to drive that change within your organization. To paraphrase President Obama, fleet managers are going to have to be innovative to make clean energy work.

There’s never been a better time to be a fleet manager.

I’d love to know what you think. Contact me at prusso@nafa.org

P.S. Already implemented some great ideas or innovations? Time's running out to get the recognition you deserve! Enter your idea in NAFA’s annual award contests. The Sustainable Fleet Awards recognize successful "green" initiatives you’ve implemented, while our Goill Quality Idea Award recognizes innovation in other facets of fleet management. Go to either www.nafa.org/sustainablefleetawards or www.nafa.org/goillawards for more details, but don't delay. Submission periods end February 15 and February 17.

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