Navigating the Future: Top Challenges Facing Fleet Managers in 2025

As the fleet management landscape evolves, challenges continue to emerge that demand agility, strategic thinking, and innovative solutions. In this article, we explore the most pressing challenges fleet managers are facing today and the hidden complexities they might not have considered. From navigating stringent CARB regulations to grappling with EV adoption and workforce shortages, fleet managers must stay ahead of the curve to ensure operational success.

This article was inspired by a recent episode of The Fleet Success Show podcast. Watch the full episode here:

1. CARB Regulations: Unintended Consequences Create New Barriers

California Air Resources Board (CARB) regulations are designed to push fleets toward sustainable practices, but their implementation has created significant obstacles for fleet managers. One of the most glaring challenges is the restriction on purchasing certain diesel vehicles unless fleets also commit to buying electric vehicles (EVs). For many fleet managers, this requirement introduces unnecessary costs and operational complications.

The Hidden Complexity: Fleet managers may not realize how these regulations can restrict vehicle availability. For example, medium and heavy-duty trucks equipped with air brakes are difficult to source because manufacturers prioritize their carbon emission credits over customer needs. Some dealerships even require fleets to purchase an EV they don’t need just to secure the vehicle they do need. These hidden barriers can significantly disrupt procurement strategies and increase total costs.

What’s Next: Fleet managers should expect continued regulatory shifts. To navigate this, proactive planning and deep familiarity with exemption processes will be crucial. Partnering with consultants who understand both the legal and operational aspects of CARB compliance can help mitigate disruptions.

2. The True Costs of EV Adoption

The transition to EVs is often positioned as a cost-saving measure, but the reality is more nuanced. While EVs promise reduced fuel costs, early data indicates higher-than-expected maintenance costs and total cost of ownership (TCO). Additionally, only 20% of government fleet use cases are currently covered by OEM-provided EV options.

The Overlooked Challenges:

• Higher Maintenance Costs: Early EV data shows increased costs per mile compared to traditional vehicles. This trend undermines the promise of reduced operational expenses.
• Limited Vehicle Options: Many fleet needs, especially vocational vehicles or SUVs like the Chevy Tahoe, lack EV alternatives. This forces managers to adopt workaround solutions, which may not always be ideal.

What’s Next: Battery health data suggests that EV powertrains could last up to 500,000 miles, a promising sign for long-term durability. However, fleet managers must carefully analyze use cases and vehicle replacement cycles to fully realize EV ROI. Comprehensive EV transition modeling—assessing range, payload capacity, and infrastructure requirements—is key.

3. Technician Shortages: A Workforce Crisis

The shortage of skilled technicians is one of the most critical challenges facing the fleet industry. As demand increases, some fleets are poaching students directly from trade schools, creating a cycle that jeopardizes the education pipeline. This short-term solution comes at a cost: fewer graduates and a shrinking skilled labor pool.

The Overlooked Challenges:

• Retention vs. Recruitment: Fleets often focus on recruiting technicians without considering long-term retention strategies, leading to high turnover.
• Educational Fallout: Trade schools depend on graduation rates for sustainability. Poaching students undermines their ability to train the next generation of technicians.

What’s Next: Fleet managers must collaborate with trade schools to build sustainable talent pipelines. Incentivizing students to complete their education—perhaps through tuition assistance or apprenticeship programs—can bridge the gap between education and employment while ensuring a steady supply of skilled technicians.

4. Risks of Partnering with Fleet Startups

The fleet industry is seeing a surge of new technology and EV startups, but not all are built to last. As startups rise rapidly, many fail to sustain operations when market conditions shift. Fleet managers who partner with these companies risk being left without support or critical technologies.

The Overlooked Challenges:

• Sustainability Risks: Startups without proven track records may fold under financial or operational pressure, leaving fleets in limbo.
• Service Gaps: Smaller startups may lack the infrastructure to support fleets nationwide, creating service challenges for geographically dispersed operations.

What’s Next: Fleet managers should prioritize partnerships with established, financially stable providers. Conducting thorough due diligence and evaluating vendors’ long-term viability can prevent disruptions. Flexibility in vendor agreements will also be critical to mitigating risks.

Looking Ahead: Proactive Solutions for Fleet Success

The challenges outlined above underscore the importance of strategic planning and expert guidance in fleet management. Whether it’s navigating complex regulations, managing the transition to EVs, addressing workforce shortages, or selecting reliable vendors, the stakes have never been higher.

Fleet managers must:

• Develop detailed EV transition plans, considering both current vehicle use cases and future regulations.
• Build partnerships with trade schools to address technician shortages while promoting long-term workforce sustainability.
• Evaluate all vendor relationships with a focus on financial stability and proven performance.
• Stay informed about regulatory changes and leverage exemptions where applicable.

Overcome Challenges Before They Become Problems

Navigating these challenges can feel overwhelming, but you don’t have to do it alone. RTA’s consulting team specializes in helping fleets overcome these hurdles with expert advice, actionable strategies, and customized solutions.

Reach out to our team today to future-proof your fleet and ensure operational success. Learn more and schedule a consultation.