Smaller operators especially seen to be more likely to invest in telematics if stronger line is taken with electronic work diaries
Making electronic work diaries mandatory is likely to see a strong fleet telematics system uptake among smaller trucking companies as a result, according to ACA Research.
The industry market research and strategy firm believes the move will see minds made up amongst two of the most populous trucking company groupings, that with 3-5 vehicles and that with 6-25 vehicles.
ACA Research finds that of the 60 per cent of the 3-5 cohort that reject the idea of investing in telematics systems, only 24 per cent would remain staunchly opposed if EWDs were made law.
For the 6-25 cohort, this would see 45 per cent against shrink to 14 per cent.
The trend holds, though to a greater degree, amongst firms with only 1-2 vehicles and much less with fleets above 25 vehicles, 83 per cent of which already have such systems.
It would seem that the smaller end of the market is seeing its rejection on IT in trucking being forcibly eroded.
One year ago, most small to medium fleet managers ACA asked were undecided on the benefits of technology to manage compliance and would not take it up.
Now, those with only 1-2 vehicles would see a rise in plans to install telematics rise from 4 per cent to 28 per cent in such a scenario.
“Recent data from ACA Research reveal that only 40% of Australian road freight transport companies have a telematics system fitted in their fleets, with a further 52% indicating that they had no plans to install EWDs,” ACA research director Steve Nuttall writes in a report on the sector.
“However, if EWDs were to become mandatory, this could lead to a 20% uplift in installation of fleet telematics systems.
“While the recent legislative changes facilitate the use of EWDs on a voluntary basis, there is little doubt that EWDs will be a significant driver of growth in the future uptake of the telematics industry. ”
Nuttall sees IT as continuing its growth trend in trucking as the industry tracks developments in the rest of the economy.
“Telematics is part of a broader shift towards a higher level of automation across the road freight transport industry,” he says.
“This encompasses all aspects of the industry from warehousing, to distribution, to back office systems, to vehicles and to the management of the infrastructure.
“The technology, which underpins this increasing level of automation, is developing at an exponential rate and is already being either trailed or used by Australian businesses.
“For example, driverless trucks have been operating in some mine sites for some time now.
“The evidence suggests a tipping point has been reached and the changes that are taking place in the industry are only likely to happen at a faster pace.”
More details on the ACA Research report can be found here.