What’s Going on with Semiconductors?
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts What’s Going on with Semiconductors? A year ago, only specialist engineers had heard of semiconductors. Today, it’s an everyday headline. While few of us actually know what they do, most of us know that semiconductors are causing huge delays, in everything from phones to cars to vans. What is going on with semiconductors and where do we go from here? A semiconductor is the building block on which circuits themselves are built. Without them, we can’t make laptops, cars, vans, planes, phones, smart speakers, remote controls, the list goes on! To put it in context, before the crisis, semiconductor manufacturers made 150 per person on the planet, in just one year! The shortage has been anticipated for some time. Around this time last year, millions of optimistic children had some ambitious demands on their letter to Santa. And my son was no exception. The PS5 was a demand that Santa simply couldn’t meet; even the Christmas lights needed semiconductors! Besides Santa’s failure, my household budget meant my son would not have had a PS5 anyway, even if we had no semiconductor shortage. He has since claimed my PS4. As a dad of 3, I have no time to play it anymore, so he is welcome to it. If Santa can’t keep up with demand, how can we? Especially when one of the largest semiconductor plants in the world closed in March following a huge fire! We’re approaching that time of year again! The kids are demanding PS5’s and businesses are demanding vehicles, there’s no end in sight. Or is there? Well, this year again, Santa won’t be much help. His elves are hardworking, but the productivity increase is too great for them alone! China and Europe are wading into this market and bringing huge production to bear. Although, this may not be in time for Christmas. Next summer though, I think semiconductors will slip right back into the headline wilderness. Reach Out! Let’s make fleet management a little less puzzling. Whether you’re just getting started or looking to take your operations to the next level, we’d love to hear what’s on your mind and help you piece together the perfect fleet strategy. FAQs Here’s some of the most frequently asked fleet management questions. Ask A Question Why are semiconductors important for the automotive industry? Semiconductors are essential for modern vehicles, powering critical systems like engine control units, advanced driver assistance systems (ADAS), infotainment, and electric vehicle batteries. Without them, the technology that makes cars safer, more efficient, and smarter wouldn’t be possible. Why is there a global semiconductor shortage? The shortage has been driven by a combination of factors, including pandemic-related supply chain disruptions, increased demand for electronics, geopolitical tensions, and the slow, complex nature of semiconductor manufacturing. This has significantly impacted vehicle production worldwide. How is the semiconductor shortage affecting fleet operators? Fleet operators are facing longer vehicle lead times, higher prices, and reduced availability of certain models. Many are adapting by extending lease terms, focusing on maintenance to extend vehicle life, or exploring alternative mobility solutions.
How to Manage a Fleet for Non-Fleet Managers
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Manaigng Your Fleet for Non-Fleet Managers Whether you’re in HR, finance, or part of an SME, we want to help you manage your fleet more effectively. We aim to provide a general overview of the basics of how to manage fleet for non-fleet managers. This paper has been written to help you to devise a fleet strategy for all types of employee needs. It is by no means exhaustive but should serve as a framework for those with little fleet experience; a framework you can follow to ensure success. At the end of this paper, you will find additional resources and contacts you may find useful. The typical company car costs around £8,000 a year to run. It is a cost second only to payroll for some companies. It is a cost that needs as strong a strategy. This paper is designed to help you ensure that you have a sound strategy, whether managed in house or externally. You are more likely to win the lottery than be jailed under the Corporate Manslaughter Bill, due to a Driving at Work incident. Though, this does not mean you should be complacent. The ‘teeth’ have always been in the Health and Safety at work legislation. Breach it, you could be in very hot water. Abide by it and you can actually save quite a lot of money! But with so much conflicting information, what do you need to do? Driving at work is one of the most dangerous things an employee can do. Under the legislation, whether they are using your car, their car, a horse, or a skateboard, you have an obligation to ensure both employee and vehicle are ‘fit for the purpose’. What is a Company Fleet The UK is one of the largest company fleet markets in the world and probably the best established. In essence, the “company fleet” is vehicles owned or leased by the company for employees to use to carry out their job. However, in the UK it is much more than that. In the 70s, employers used cars as a way to recruit talent, to overcome set pay rules imposed during hyperinflation. Since then, cars have increasingly been used as a recruitment and retention tool. One thing for sure is that the company fleet is a huge part of modern business. Huge potential benefits that go way beyond just transporting staff, but huge costs and even potential legal issues if you get the strategy wrong. Looking to Solve Your Fleet Puzzle? That’s what we’re here for. Let us know what you need and we’ll find the missing piece. Get in Touch The Differing Company and Employee Needs When you look at operating a vehicle fleet, you need to devise or indeed revisit the business case. Too many companies still have the same strategy they had 10 – 15 years ago simply because it’s always been done that way. Though, as companies and transport evolve, so should your vehicle policy. Job Need Most companies require company vehicles. However, how that is addressed should be tailored, not blanket. It normally depends on a whole raft of variables, but we’ll concentrate on the 2 main drivers: utilisation and purpose. Employee Need All employees need vehicles normally, even if they are just commuting. You may be surprised to know you can help with this. The best solution again depends on utilisation: No Work Use Consider introducing a salary sacrifice scheme. It costs you nothing and has huge benefits to recruitment, retention and for the environment. Nominal Work Use For occasional work use, you may be better served with: A pool car fleet: spare cars you allocate as needed Hire cars: companies like us can arrange this for you Worst case: letting employees use their own car The latter can be expensive for you and the employee. It is jam-packed with duty of care issues, see the Grey Fleet section on the website for more info. Moving Equipment If you need to move equipment, it could be goods or equipment with people, you have to choose appropriate vehicles. However, you don’t always need to have permanent vehicles. If vehicles are likely to be used for more than 8 days a month, we’d always suggest you buy or lease. Travelling less than this? Look at hire vehicles, you’d be amazed how even specialised vehicles can be sourced cost-effectively. High Mileage Essential Users: Anyone covering more than 10,000 business miles a year should be in a company car. The car should be “fit for the purpose” so lumbar support, adequate room, and sat nav will be required. Other considerations: These include the compromise of work and own use. Some employees need 7-seaters. Is this practical for company use? 3-door vehicles? Will this be problematic if collecting customers? Should you set a maximum CO2 or minimum MPG on the vehicles? There are many, many considerations. Funding Your Fleet: What Are Your Options? Choosing the right way to fund your fleet can make a big difference to your business’s cash flow and flexibility. From outright purchase for full control to contract hire for low upfront costs, and finance leases for ownership with flexibility, each option has its pros and cons. You might even find a blend of approaches works best for you. Find Out More About Funding Options Here Constructing a Policy When you look at vehicle policies, car policies especially, you’ll be amazed by how political things can become. You could be forgiven at times for thinking it’s a poisoned chalice. Usually, the people designing the policy are not eligible for cars. The negativity those eligible can understandably frustrate. However, take into account the genuine needs of all stakeholders, employees, employer, and customers. Then, a sensible solution can often be reached with all but the most petulant drivers. You can’t please all of the people all of the time, but
Duty of Care: The Great Risk Hijack!
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Duty of Care: The Great Risk Hijack Some things are real. For instance, COVID-19, and Global Warming. Other things are less so… like the Loch Ness Monster, sugar making kids hyper, or my memory of my rugby playing ability… The latter are in fact fictions! In part because it serves the interests of some, but crucially, not all. As is with Duty of Care! In 2007, the Government passed the Corporate Manslaughter Bill, which sanctions companies for breaching a duty of care. With it, all sorts of ancillary suppliers to the fleet industry went on a rampage of fiction and scaremongering; blinded by the pound notes in their pockets instead of yours. The Fact Remains Now as it Did Then You are more likely to win the lottery than be jailed under the Corporate Manslaughter Bill, due to a Driving at Work incident. Though, this does not mean you should be complacent. The ‘teeth’ have always been in the Health and Safety at work legislation. Breach it, you could be in very hot water. Abide by it and you can actually save quite a lot of money! But with so much conflicting information, what do you need to do? Driving at work is one of the most dangerous things an employee can do. Under the legislation, whether they are using your car, their car, a horse, or a skateboard, you have an obligation to ensure both employee and vehicle are ‘fit for the purpose’. What Does That Mean Well, it does not mean you need to buy electronic licence checking, training, or telematics. Although, some of those may be good ideas… The HSE dictate to meet your obligations. You must have a robust policy, a process to review and amend it, and an audit of its communication. You have to take reasonable steps, like checking someone has a licence. Insisting on them having more training than the law requires? No need. It could be useful for some, but not a legal requirement. Reach Out! Let’s make fleet management a little less puzzling. Whether you’re just getting started or looking to take your operations to the next level, we’d love to hear what’s on your mind and help you piece together the perfect fleet strategy. FAQs Here’s some of the most frequently asked fleet management questions. Ask A Question What is the Duty of Care for fleet operators? Fleet operators have a legal and moral obligation to ensure their drivers’ safety and well-being. This includes maintaining roadworthy vehicles, providing driver training, conducting regular risk assessments, and promoting safe driving practices to reduce the likelihood of accidents and liability issues. Why is Duty of Care important for businesses with fleets? Meeting Duty of Care obligations not only protects your drivers but also reduces the risk of costly legal claims, improves fleet efficiency, and enhances your company’s reputation. Failing to comply can lead to significant financial penalties, legal action, and damage to your brand’s trust. How can businesses effectively manage their Duty of Care responsibilities? Effective Duty of Care management involves a combination of regular vehicle checks, driver training, risk assessments, real-time fleet monitoring, and a clear incident response plan. Partnering with a fleet management expert can help streamline this process and ensure ongoing compliance.