Author: Grace Suizo

With more baby boomers heading into retirement, industries that have benefited from these individuals’ decades of experience and expertise — including the utility fleet sector — are now left to hire and retain new talent.

That won’t be easy, according to Jennifer Maher, CEO and executive director of TechForce Foundation (www.techforcefoundation.org), whose mission is to champion students to and through their education and into careers as professional technicians. “There has been a critical shortage of qualified technicians for at least 20 years, so as the rest of the baby boomers retire within the next 10 years, things can only worsen. A report that we published late last year indicated that for this year alone, the vehicle industry – auto, diesel and collision – needs more than 137,000 new-entrant technicians.”

But it’s not just the retirements that will make matters worse, Maher said. “There simply are not enough young people seeking a technician career by any means – formal or informal education and training – to fill the void. Our school systems in this country have either reduced or eliminated vocational training in favor of a four-year degree. In effect, they have abandoned working with your hands as a viable career path, which is absurd not only because of the tech shortage, but also because a tech career offers a solid, middle-class lifestyle.”

So, what can utility fleets do to address this problem – and what should they opt not to do?

“The worst thing utility fleet managers can do is take a wait-and-see attitude. When you don’t have enough qualified techs to service the fleet, no matter which one, there is going to be a loss in productivity and efficiency,” Maher said. “The entire industry – associations, manufacturers, service facilities, et cetera – has to come together to solve the problem. For the sake of the industry, even competitors will have to check their self-interests at the door.”

A Tough Task
It’s no surprise that fleets seek to hire experienced candidates to replace those employees who have retired or left the company for other reasons. But some losses make more of an impact than others, and replacing those workers typically isn’t easy. 

For example, John Adkisson, transportation manager for PPL Electric Utilities, said that it’s a major loss when employees who can work on hydraulic aerial devices or specialized equipment – and who can train others to do the same – leave the company. “We usually make sure techs come from technical schools or have a body of knowledge from prior job experience, but the hydraulic training is coming from in-house,” he said.

To address this issue, PPL hired a former hydraulic mechanic in October 2017 to serve as an in-house instructor and share his knowledge with others. “Eighty percent of his time is spent training; the rest is on actual maintenance. When there is an opportunity for the specialized hydraulic work, the less-seasoned techs use that time for on-the-job training,” Adkisson said.

Proactive Approach
Nebraska Public Power District (NPPD) has taken a proactive approach to attracting prospective employees by working with several area technical colleges over the past four years to increase the pool of qualified candidates for its fleet. Initially, however, there wasn’t much interest from the students.

“A lot of these students going into vocational tech schools already have a preconceived notion of what they want to do when they leave,” explained Matt Gilliland, director of transportation and facilities for NPPD. “They go into it to work at Caterpillar or end up at Deere. When you hear ‘utility,’ it’s easy to automatically jump to the conclusion of line-type work rather than the fleet service.”

To spark greater interest, NPPD decided to bring fleet equipment into the schools and hold utility demonstration events. During these events, staff from the utility go into classrooms and provide 10- to 15-minute presentations about how the equipment operates, what they work on and some of the challenges they face.

“That builds excitement, and then we have the candidate pool,” Gilliland said.

NPPD employees also serve on the advisory boards of these colleges, which has allowed them to provide input on some of the curriculum and order of class schedules. That also presented the opportunity for an internship program. “Typically it starts with some shadowing, they get some familiarity,” Gilliland said. “We have the opportunity then to have a second person on board for jobs that require two people. Eventually, as they mature in the internship, they typically work on their own.”

NPPD offers one to two paid internships per year, ranging from 20 to 40 hours per week during its regular Monday to Friday, 7 a.m. to 4 p.m. schedule. Hours are flexible to accommodate students’ class schedules. Gilliland said the program has worked out well, with students moving on to take positions with other utilities as well as vendors that service utilities.

For other fleets interested in implementing a similar program, Gilliland suggested contacting local tech schools to find out about their current internship programs, how they work, and whether they’re done on a semester or quarterly basis.

“Then just have an open dialogue about what you and the company want to get from that internship and what the school can provide, then jointly create that opportunity,” Gilliland said.

About the Author: Grace Suizo has been covering the automotive fleet industry since 2007. She spent six years as an editor for five fleet publications and has written more than 100 articles geared toward both commercial and public sector fleets.

*****

Starting at the Grassroots Level
Whether a fleet will be able to adequately fill the roles of seasoned employees when they leave the company will depend on several factors. It’s helpful to have a plan in place and take advantage of available resources.

“If we’re going to solve the qualified technician shortage problem, we need to work at the grassroots level, offering tangible and relevant experiences to adolescents as they start to think about their careers,” said Jennifer Maher, CEO and executive director of TechForce Foundation.

Local community colleges and training schools are good places to begin recruiting candidates, in addition to hosting on-site job fairs where students and parents can gain a better understanding of what fleet businesses do and how they do it.

Maher also noted the Technology & Maintenance Council’s annual National Technician Skills Competition – also known as TMCSuperTech – which attracts contestants from all segments of the industry, many of whom have won state, regional and corporate skills championships.

“If a fleet manager wants to hire the techs with the most potential, these competitions provide ready-made opportunities to start a conversation with them,” Maher said.

TechForce recently unveiled its revamped website (www.techforcefoundation.org), designed, built and managed by Autoshop Solutions. The new site includes the FutureTech Resource Hub, a one-stop-shop portal through which future technicians can find after-school programs, clubs, events, technical schools, scholarships and training that help develop their skills and pathway to the technician profession. Additionally, the site includes the new Industry Hub, through which industry recruiters, managers, working technicians and educators can find helpful resources to support and connect with future technicians.

Manufacturers have stepped up their technology efforts to meet rigorous fuel-efficiency and emissions standards. In doing so, many next-generation engines will need higher-performing diesel engine oils to protect them. This requires changes in engine oil composition to withstand more heat without sacrificing engine protection.

A new generation of diesel engine oils was rolled out in December 2016. One of those oils is CK-4, a high-temperature, high-shear (HTHS) oil that can be used in both new and existing engines. It is available in the same viscosity grades and oil types currently being used in fleet operations.

According to the American Petroleum Institute (API), CK-4 can be used in high-speed, four-stroke-cycle diesel engines designed to meet 2017 model-year on-highway and Tier 4 non-road exhaust emission standards, as well as previous model-year diesel engines.

As much as possible, minimize exposure between new and old engine oils to ensure the benefits of CK-4 as well as continued OEM warranty support, advised Mark Betner, heavy-duty product line manager for CITGO (www.citgo.com).

A second oil type that debuted in December – FA-4 – has limited backward compatibility and is better suited for 2017 model-year engines and beyond. This “low-HTHS” oil is offered in lower viscosity grades and is not recommended for use with fuels having greater than 15 parts per million sulfur, according to API (www.api.org).

What Are the Benefits?
Benefits of the new CK-4 and FA-4 oils include increased fuel economy and lower emissions.

“Lower-viscosity engine oils will improve fuel economy and reduce greenhouse gases over [previous] engine oils,” Betner said. “FA-4 engine oils in an FA-4-compliant engine will offer even greater fuel economy and reduce greenhouse gases.”

In addition, “Today’s lighter weights can deliver the equivalent or even better wear protection than a CJ-4 15W-40 oil, along with significantly improved oil drain performance,” according to Len Badal, global Delo brand manager for Chevron Lubricants (www.chevronlubricants.com).

Betner agreed, noting the advanced technology of these two engine oils provides significant improvements in deposit control, shear stability and oil aeration control. “These engine oils will also have a 60 percent better oxidation resistance compared to API CJ-4, which aids in extended service intervals,” he explained.

Badal mentioned that off-road equipment would reap significant rewards from CK-4. “CK-4 oils deliver many benefits that directly address major issues with off-road equipment, including extended drain intervals, reduced engine wear and ability to extend rebuild intervals,” he said. “Off-highway equipment operators stand to gain a lot of benefits from the new API CK-4 oils, with a direct impact on reliability, productivity and profitability.”

Based on reduced fuel consumption, and extended oil drain and engine rebuild intervals, potential cost savings are expected.

Fleets surveyed by CITGO reported improved fuel efficiency after converting to its new API CK-4 oils, with improvement ranging from 1.6 to 3.2 percent after 50,000 miles.

What’s the Next Step?
Identify the units in your fleet that will be most impacted, and always check the owner’s manual for the proper lubricant recommendation.

One particular area of concern is for fleets comprised of various makes and models. Some automakers have indicated that neither one of the new engine oils should be used in certain vehicles at this time.

Nebraska Public Power District is one utility that has been proactively addressing that issue. Matt Gilliland, NPPD’s director of transportation and facilities, said he has been communicating with internal staff and servicing vendors to address the diversity of units in the organization’s fleet.

About the Author: Grace Suizo has been covering the automotive fleet industry since 2007. She spent six years as an editor for five fleet publications and has written more than 100 articles geared toward both commercial and public sector fleets.

*****

OEM Specs for API CK-4 and FA-4 Oils
Major diesel engine and truck manufacturers recently provided their own OEM specifications that connect with the new API CK-4 and FA-4 categories for their new model GHG 2017 diesel engines, with several also citing backward compatibility as well as upgrades to support longer oil drain intervals. These initial specs are mainly focused on CK-4 but should include more FA-4 data in the future.

Source: Len Badal/Chevron Lubricants

Deciding whether to outsource maintenance and repair work or perform it in-house can be a daunting task for fleet managers. To gain some industry insight, UFP recently spoke with Holly Giffrow-Bos, fleet supervisor for East Central Energy (ECE), and Dan Remmert, manager of fleet services for Ameren Illinois Company (AIC), about what’s worked for their operations and what to consider if you’re leaning toward outsourcing part or all of your maintenance and repair work.

According to Giffrow-Bos, about 15 to 20 percent of ECE’s fleet jobs are outsourced. These typically include body work, warranty work and any kind of heavy-duty engine or transmission replacement work. The electric distribution cooperative, headquartered in Braham, Minn., has a fleet of approximately 180 units.

Due to the level of training and the resources required to perform body work, Giffrow-Bos said ECE “never got into it because of the expense of having that specially trained person and equipment.” The fleet also doesn’t have a lot of jobs that require body work.

In general, ECE handles all diagnostics, repairs and preventive maintenance in-house. This work, too, comes at a significant expense; each of the cooperative’s in-house technicians must be trained on all vehicle makes and models used by the fleet, as well as a range of different tasks.

“They have to know hydraulics to mechanical to electronics, hydraulic over electrical,” Giffrow-Bos said.

AIC – a Collinsville, Ill.-based utility with a fleet of approximately 3,300 assets – outsources about one-third of its fleet maintenance and repair work, according to Remmert. This includes some warranty and glass repair jobs, as well as high-tech tasks if AIC’s mechanics haven’t undergone the training needed to do the work. Location also factors into AIC’s outsourcing decisions. If the utility only has 20 vehicles in a small city, Remmert said, “it doesn’t really make sense to have a mechanic there.”

Technician and Facilities Considerations
For a fleet to keep any of its work in-house, fleet managers need to ensure they have enough qualified technicians to handle the work.

“You’ve got to have a solid training program,” Remmert said, and that includes ongoing training.

One reason ECE tries to keep its fleet repair and maintenance work in-house is because the cooperative is located in a rural area. “I’ll do a lot more training with the four technicians I have because we just don’t have many options out there within a short distance to do sublet work,” Giffrow-Bos said.

Every fleet that employs technicians also has to have a place for them to work, so consideration must be given to facilities when deciding whether or not to outsource work.

“For example, for CNG, you actually have to make sure that the building can handle the fire marshal regulations around natural gas or you have to search out vendors that have those abilities,” Remmert explained.

And for fleets thinking about building a facility, “that’s a long-term planning commitment,” he continued. “You have to get the building plot, you have to get the approvals – there are a lot of factors.”

So, for those fleets that simply don’t have the appropriate workspace, it may seem easier to partner with an outside vendor to get the work done. But keep in mind that it’s not always a one-stop shop. As Remmert noted, many vendors are specialized. If a vehicle needs two or three different repairs, it may have to be sent to two to three different shops before it can be driven again, which can sorely affect the vehicle’s uptime.

Downtime can still be a challenge even if a job is only being outsourced to one vendor, Remmert said. “A lot of times my truck is sitting there at a vendor because I’m not their most important customer. They won’t get to that truck until two weeks from now. We find that especially with some high-technology stuff. They may only have one mechanic trained on that component and he’s backlogged and I’m waiting.”

With an in-house program, a technician typically can respond right away in the event of an emergency, and the quality of work may exceed that of an outside vendor’s work.

“[Vendors] don’t always treat your vehicles as if they were their own, so you don’t get the quality of workmanship that you might get from somebody you employ,” Remmert said.

Controlling Costs
Today’s fleet managers are always keeping their eyes on the operation’s finances. If a fleet chooses to outsource, Giffrow-Bos said, that reduces overhead costs because fewer employees and less inventory will be needed.

However, contracting with a vendor often means giving up control in certain ways.

“If a job goes out to a vendor and you really don’t know the condition of that vehicle, you start relying heavily on that vendor,” Remmert explained. “I think you have better control with an in-house model. Also, you can control the parts cost. If the job goes to a small vendor, a lot of times I’m paying retail price for that parts cost, where if I had an in-house model, I’m buying at very strategically low prices because of sourcing bids I have with my major parts vendors. I have versatility.”

To put it simply, deciding whether or not to outsource some or all of your maintenance and repair work is a complex task. For most fleets, it’s about analyzing all of the important factors – including cost, quality and turnaround time – to find the balance that works best for the organization.

About the Author: Grace Suizo has been covering the automotive fleet industry since 2007. She spent six years as an editor for five fleet publications and has written more than 100 articles geared toward both commercial and public sector fleets.

Are you unsure whether to purchase aftermarket or OEM replacement parts for your fleet’s vehicles? Using a mix of both has proven to be an effective strategy for Ameren Illinois Company (AIC), Fairfax County Water Authority (Fairfax Water) and Oklahoma Gas & Electric (OG&E), according to fleet representatives from the three utilities.

Safety, performance, availability and quality are among the factors that make OEM parts the best option for certain aspects of fleet operations.

“On critical components, it’s better to get the original equipment parts instead of taking a chance on questionable quality of the aftermarket materials,” explained Dale Collins, CAFM, fleet services supervisor for Virginia-based Fairfax Water, which maintains more than 400 fleet units. “Folks can easily replicate good-quality wiper blades, but not more sophisticated electronic parts.”

Several years ago Fairfax Water replaced the original brake pads on its heavy-payload pickup trucks with aftermarket pads that did not hold up well. The utility now relies on the durability of factory OEM brake parts that they have found to be superior to aftermarket products. Fairfax Water also depends on original equipment parts for engine management due to past performance issues with some of its construction equipment, and it uses OEM parts for auto body and crash repairs in critical areas of the vehicle in order to maintain “crashworthiness,” or the ability of a vehicle to protect occupants during an impact.

Similarly, AIC sticks with OEM parts when it comes to electronic and emission components and large component rebuilds such as engine transmissions. According to Dan Remmert, manager of fleet services for the Collinsville, Ill.-based utility, OEMs are usually quicker to implement upgrades on emission-related items than aftermarket parts manufacturers.

“With the OEMs, there appears to be less lag on new-model parts,” he said.

Aftermarket Appeal
OEM parts certainly meet various utility fleet needs, yet there are a number of reasons underlying the popularity of aftermarket parts. For one, these parts can help utility fleets save money.

According to Remmert, cost savings is the reason AIC turns to the aftermarket for its preventive maintenance parts, including filters, bulbs and even batteries. In terms of volume, more than 80 percent of the utility’s parts are aftermarket purchases.

Fairfax Water also depends on aftermarket suppliers for tune-up parts, filters, chassis parts, brake parts, wiper blades, bulbs/vehicle lighting and other items.

Beyond cost savings, the aftermarket can provide solutions when OEM parts fail to do the job.

“A few years back we had some pickups that had fuel gauge problems because of how the fuel sending unit was designed,” recalled Paul Jefferson, fleet manager for OG&E. “I read an article about how the aftermarket had already identified [the problem] and so we switched.” OG&E uses aftermarket parts mostly for brakes and suspension, filters, electrical tune-up parts, wipers and batteries, and sometimes for engine components for the pickups and sedans in its fleet of nearly 2,000 units.

Fairfax Water had an experience similar to OG&E’s. “Oftentimes the aftermarket tends to do a better job at re-engineering a weak area in an OEM part,” Collins said. “Years ago we went through a lot of belt tensioners. The bearing itself wasn’t sufficient to support the load, so the aftermarket responded and put in a more robust bearing, which solved a lot of the problems.”

Streamlining of vendors is another reason utility fleets turn to aftermarket parts. For example, in the past OG&E would buy aerial baskets from one manufacturer, digger derricks from another and small baskets from a third. The units would end up with different strobe lights, brake controllers, taillights and other components. Now the fleet minimizes the number of vendors it works with by sticking to one standardized part.

AIC also has increased its reliance on the aftermarket because of the utility’s desire to standardize and streamline its work with vendors.

“If all things are equal, I’m going to go with the aftermarket and get a bigger spend with one guy than some OEM and deal with so many more vendors,” Remmert said. “The desire is to do more with less.”

Remmert enjoys having a single source for sales support as well. “I deal with one guy and he can handle the whole territory,” he explained. “OEMs seem to be more independently owned, so you’ve got multiple contacts, if any sales support at all.”

Plus, AIC has been able to leverage the aftermarket’s non-catalog items. “We use a lot of widgets that typical suppliers wouldn’t stock,” Remmert said. “[Aftermarket parts suppliers] actually go out and find those parts. I haven’t had that kind of luck with an OEM.”

Warranty and Safety Considerations
Charlie Guthro, vice president of operations for ARI, one of the largest fleet management companies in the country, has some insight for utility fleets that are trying to make the choice between OEM and aftermarket parts.

“When faced with the decision of needing to replace a part, fleets should consider whether there is the potential to recover any of the cost under the terms of any existing warranties,” he said. “Generally, warranties are only available on OEM parts.”

Guthro also advised fleets to give ample consideration to the safety of aftermarket parts. “While aftermarket parts can often offer the greatest value, fleet managers should check to be sure the parts do not affect the safe operation of the vehicle or other upfit parts,” he said.

About the Author: Grace Suizo has been covering the automotive fleet industry since 2007. She spent six years as an editor for five fleet publications and has written more than 100 articles geared toward both commercial and public sector fleets.