Over the next 10-20 years, more stringent government regulations will dramatically impact the commercial vehicle supply chain. Safety, efficiency and environmental regulations administered by the National Highway Transportation Safety Administration and the Environmental Protection Agency pose unique challenges for R&D teams within truck and bus OEMs as well as S&T challenges for the Department of Defense.
[INSERT INFOGRAPHIC HERE]
The average price per semi-truck is $142,000. This price is forecasted to increase 2.1% over the next 3 years. Key pricing factors include engine, efficiency and drivetrain features and the condition. Long distance (NAICS 48412) and local freight (NAICS 48411) fleets must balance upgrade and price tradeoffs to maintain a sustainable bottom line and accurately forecast margins. Today it costs, on average, $4,000 per truck to upgrade to an all ADB configuration. This requires an additional $500,000 to upgrade all trucks within a medium sized fleet. Maintenance and repair costs are also increasing. In 2015, freight carriers spent on average 7.6% of revenue, or $14.1B, on maintenance and repair.
The Department of Defense (DoD) faces its own unique challenges. As we adapt technology to different threats in austere environments around the world, mobility and reliability have become strategic priorities for the Warfighter. Vehicle force protection measures and heavy up-armoring have completely crushed tactical vehicles. The tradeoff to keep the Warfighter as safe as possible has greatly degraded vehicle performance and stability. Up-armoring can add an additional 35% or more of the vehicles GVWR. For example, this tradeoff can increase brake wear by 500%. The DoD also faces an aging fleet of heavy tactical vehicles without rebuild programs established. They must make cost vs. tradeoff decisions on when, how and what upgrades should take place.
As most companies react and adapt their current technology to past, current and proposed future regulations, Sphere Brakes has taken a proactive approach and provides a multi-faceted and complete solution to these demands.