Fleet Advantage released results of its latest industry survey, which takes an annual look at practices and insights from truck fleet operators and for-hire carriers. Among the largest takeaways, survey data shows more fleets are acquiring new trucks by leasing and shortening their asset lifecycles before replacement, compared to the previous years’ data of an average of seven years.

In 2015, 22% of fleets said they were operating their trucks on a three to five-year lifecycle, with the majority being five years (14%). This number jumped to 48% this year with 12% on a three-year lifecycle (0% in 2015), clearly demonstrating a movement to shorter lifecycle operations.

As further evidence, the percentage of fleets operating trucks on a six to eight-year lifecycle fell from 44% to 32%. Fuel economy gains were subsequently experienced. In 2015, 68% of respondents said they experienced a consistent increase in fuel economy with 2011 to 2015 model year trucks, whereas this number jumped to 84% for model years 2011 to 2016.

The key factor driving this shift comes from understanding economic versus functional obsolescence and the costs associated with fuel, which has historically represented nearly 70% of the total cost to operate a truck. As an example of the cost savings associated with a shorter lifecycle, fleets that operate on a three-year lifecycle see a per-truck savings over 10 years of $17,040, compared with those operating on a seven-year lifecycle.

In addition to shorter lifecycles, leasing activity is on the rise. In 2015, 20% of respondents said they leased their trucks. This number more than doubled to 48% in 2016. Procurement of new trucks via leasing went from 36% in 2015 to 48% in 2016. With more fleets trading in their vehicles (up to 40% from 22%), it is clear the industry is opting for shorter term leasing, which provides more flexible options when managing equipment and upgrading to new trucks every three to five years.

However, the 2016 fleet survey also showed fewer fleets opting for full-service leasing. Last year’s survey indicated 18% of respondents utilized full-service leases, but that number dropped down to just 4% this year.

“Because of its proven impact on lowering fuel costs, as well as service and repair, it’s not surprising to see a large jump to short lifecycles combined with leasing for private fleet operators and for-hire carriers,” said Brian Holland, president and CFO of Fleet Advantage. “Fleets that shift to a shorter asset lifecycle quickly see these gains to their operational bottom line, and our business intelligence platforms are crucial in helping other fleet professionals see the value for their business. We believe the results of this survey validate the shift that has already taken place in the industry.”