Clean Energy and the USS Intrepid

Hello Fleet Professionals!

Last week my business partner (Don Taylor) and I journeyed to the Big Apple and northern New Jersey to visit some clients and to attend a joint NAFA New Jersey and New York Chapter meeting. Whenever I plan a trip to the region, I always make an effort to attend a meeting of one of these chapters. They each have a long tradition of hosting meetings that offer a terrific educational opportunity and great networking. So when they join forces it's something extra special. Add in a sponsorship by Mercedes-Benz Fleet Operations and you've got a one of a kind meeting in a one of a kind venue!

For those of you not familiar with the USS Intrepid or New York City, let me take a moment to explain. The Intrepid is one of the most successful ships in naval history. It started it's service during World War II and is now a national historic landmark docked on the Hudson River in New York City. Not only does the ship offer incredible views of the New York Skyline but it also serves as the Intrepid Sea, Air and Space Museum.

The opportunity to see this great ship is more than enough of a draw for most people. The hosting Chapters also provided two outstanding speakers for the assembled group of roughly 150 fleet professionals. The first speaker was Andrew Littlefair, the President and CEO of Clean Energy. If the company sounds familiar it should. T. Boone Pickens has been talking about it for the last year, especially through the election cycle. Mr. Littlefair addressed the group about clean air technologies and covered everything from windmills through hydrogen, nitrogen and other sources of energy. The second speaker was Christine Todd Whitman, former Governor of NJ and former Presidential Cabinet Member. She spoke to us about the government policies surrounding alternative forms of energy and clean air. To say that this was a serious and extremely sobering meeting would be an understatement. To listen to the speakers we are headed towards more government regulation of emissions and how we manage our fleets.

By now you're probably thinking that I'm going to give you a blow by blow of the speeches and the history of the ship. Not true. I bring this meeting and these topics up for a simple reason: they are examples of what's good about NAFA and what we have to look forward to over the coming years in our fleets. Both of these topics I have been writing about for the last several months in these blog entries.

First let's talk a little about the meeting and the people that put it together. These are all hard working fleet professionals who freely volunteer their time to share the wealth of information that we all own individually. They have devoted countless hours of their personal time, time away from their families and their jobs to lead their peers for the betterment of all. They are great examples of what everyone of us can achieve professionally if we set our minds to it.

Secondly, our jobs will continue to get more difficult in the coming years. Clean air, Cafe emissions and the environment are all serious and important issues but is this the time to put further requirements on corporations when the entire economy, and the car industry in particular, are still reeling from the worst economic crisis in recent history? As much as any of us may want to complain about it this is where we are so we must deal with it.

So what can we do about this? Make no mistake we are all in this together. There is strength in numbers so the first place to start is your local NAFA Chapter. If you're a Chapter Leader, start looking at meetings that are "hard-core" fleet topics that allow for the exchange of ideas and thinking outside the box. Topic speakers are great, but how about round table discussions that could be used to generate ideas and ways of dealing with the plant shutdowns, financing issues and the environment, just to name a few. You might be surprised how much take away you'll have from that kind of a meeting if you do it right!

Don't stop there! Take some of those ideas back to your office and try some of them out. Look at unbundling some of those services, the ones that really drive up your costs and those that directly affect your depreciation, like remarketing.

If you are a regular reader of these entries, you have probably picked up on a common theme. We are living and working in a very interesting time. The rate of changes we are experiencing are coming at us more and more quickly. At the same time government involvement in business is also growing. The only tools we have to combat these forces are our experience and our network of contacts, that make our presence even more valuable for our employers. Use every tool at your disposal to make yourself the most indispensable asset your company has - and keep doing it!

Keep your chin up, and let me know what you think!

Cheers!

Any New Ideas?

Hello Fleet Professionals!

It's been over a week since we returned from the NAFA I&E in New Orleans. Can you believe how quickly the time has flown by? So after attending all those terrific sessions, listening to the keynote speakers and participating in many hours of networking what are you doing? Have you taken a moment to evaluate your experiences and discussions? You probably haven't had the time. Like most of us, you returned to hundreds of e-mails and telephone messages each one no doubt of great urgency, and before you know it the conference and those lessons or tips you wanted to implement have become a distant memory. Sound familiar?

One of the sticking points I came away from the conference with was how much we all need to change what we are doing. That came out in almost every conversation I had with people and in some of the sessions as well. But what are we really doing to meet this challenge? Years ago we operated in an unbundled environment. Many of us leased through a leasing company and then used independent vendors for many of the ancillary services we used. Those days seem to be behind us. Why do I say that? Mainly because when I speak with fleet managers around the country I'm told they single source through one lessor for all their services. They tell me they don't have time to use multiple vendors and many have even said it's just easier! So in these days of financial troubles how's that working for you? Have you experienced a slowdown in your fleet operations because your source hasn't been able to secure the funding needed to get the job done? I've been hearing that a lot lately.

After listening to the lessor panel at the NAFA I&E I'm wondering if anyone is thinking about unbundling now? During the panel, the leasing company representatives all did their best to skirt the issue about the financial markets. Oh they touched on it, but seemed to go to great efforts to tell everybody to maximize fuel usage (that's important too) keep up with maintenance and make sure you're using the right kind of vehicles in the right applications. There was lots more, but it was generic "keep it in the box" advise. You could see from the looks on the attendees faces that they were not happy. Luckily for the many in the room, a few brave folks got up to the mike and started asking some of the tough questions. And when the panel wasn't initially forthcoming these fleet managers called them on it. That's when the presentation got interesting. But here's the bottom line: we're in a very tough economy right now. The lessors are financial institutions that are offering their customers the ability to keep their fleets off the balance sheets and it just got a lot more expensive to do that!

So what are you, the experienced fleet professional going to do about that? How are you going to add value to your operation, and your company? How are you going to save your job? Of course I have a few suggestions!

1. Take a good hard look at the services you provide for your fleet. What are they costing you and do they provide the value you expect?

2. If you single source your operation, you should start looking at alternative ways of securing your fleet or you'll end up like many did this year: not ordering a single new vehicle. Talk to your Treasury Department. Even if you don't want to go the purchase route, they may have access to better sources of capital so you can self fund your leases.

3. Keep a close eye on your depreciation. Used vehicles values are changing on a daily basis these days. Make sure the method you are using to dispose of your vehicles has it's focus on your vehicles and not the process the vendor uses to maximize the number of vehicles it sells.

4. Start measuring everything and report your progress to your management.

A few people that I spoke with at NAFA shared the best advice I've heard so far. Whether you are a fleet manager or a service provider, this is the time to show what you are really made of. You can continue to do things the way you have always done them and use the excuse that you're too busy to look at alternatives. That attitude today will lose you customers and if you're a fleet manager, probably your job. However, if you work even harder (I know that's going to be hard) and look at innovative, unbundled solutions to do your jobs, your efforts will be rewarded.

So take some time this week to think about what you learned at the NAFA I&E. Take some time to remember the conversations you had there with other fleet managers and service providers. Then invest some valuable time looking at some alternatives like unbundling services. Not only will it improve your bottom line, it might just save your job!

Keep your chin up! And please let me know what you think. Cheers!

New Orleans is a Great Place for a Conference

Hello Fleet Professionals!

I just returned from the annual NAFA I&E, or as us "old timers" call it The Conference. It never ceases to amaze me, regardless of how involved I may personally be in the conference, that when you get into town the time you are investing seems to be long. Then before you know it the show is over and you're on your way home. That's a testament to the hard work of the committees and staff to organize a program that not only keeps us busy but provides us with choices.

2009 has been a challenging year for the auto business and that was really reflected in this year's I&E. It's obvious to see that the Curriculum Committee made conscious decisions to address much of what is happening in the world today. Attendance was somewhat down and it appears that donations may have been down as well. As a consequence the conference had a smaller feel to it. I don't mean that in a negative way. For many years, it seemed as if the show was getting larger and "glitzier". This year our conference reflected the world and that's a good thing. Call it a reality check.

One of the benefits of a smaller conference is that you have more time to spend with the people that are there. In that respect, this conference rates high. From the moment I got to the hotel on Friday evening until the time I left on Wednesday there was non-stop networking. That's my favorite part! And that was not only with people that I've known for many years but also with many that I met for the first time. In fact there's nothing like watching a first time attendee during a conference. There's a sparkle in their eyes that takes me back to my very first conference in Boston, way back in 1985!

One of my favorite changes this year was the use of the "big rooms" for some of the speakers. Keeping us in the larger meal rooms for several of the panels was an inspired choice. So many times we are crammed into large rooms for the panels (OEM and Lessor) and it's standing room only. This year was much better.

My biggest disappointment was the elimination of the Chapter Recognition Awards this year. I don't know who's decision it was to do away with the awards this year but it is a huge mistake. In this era of cost cutting and diminishing interest in volunteerism, NAFA decided to eliminate the one form of recognition available for the average member and affiliate. What are they thinking? Our chapters are the lifeblood of the association. Without the chapters, there would be no NAFA. The Board of Governors need to reconsider this decision. The members and affiliates that spend endless hours working at the chapter level deserve recognition just as much as those hard working individuals that are honored by education awards, distinguished services awards and the like.

So the bad news this year, in addition to the Chapter Recognition award elimination, was that the conference was smaller and that many didn't attend this year that normally would attend. Some of this was due to budget restraints, but since last year many have retired, moved on or been laid off. But there's good news too. For one thing, the conference was smaller, so we got to spend more time together, the meeting spaces were better, and the sessions (at least the ones that I attended) were consistently good.

NAFA has been a big part of my life for 25 years. It's good to see that the leadership recognizes that adjustments need to be made in the annual conference to keep it relevant.

Until next time, keep your chin up! And let me know what you think.