State Farm, Others Revamping Fleets And Business Practices To Save Money

May 1, 2008

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As gas prices rise, companies are driving for bigger energy savings in every corner, USAToday reports.

Companies and business people are rethinking their sales strategies, buying smaller vehicles or hybrid vehicles, and postponing the replacement of fleet vehicles. They’re consolidating trips and replacing some altogether with e-mails or conference calls.

More companies may consider looking at State Farm as a model. With one of the largest fleets in the country, State Farm has perhaps more reason than anyone to revamp its fleet, and it is doing so.

Today, 22 percent of State Farms’ 14,000-vehicle fleet consists of hybrid or flex-fuel vehicles, such as a Toyota Camry, Dodge Caravan, Ford Escape, Toyota Prius or Chevrolet Impala.

Companies are realizing that replacing current technology with more sustainable technology can save millions of dollars in the long-term.

Building maintenance supply company W.W. Grainger says its manufacturing and industrial customers are clamoring for the energy-efficient lights, high-efficiency water faucets and even waterless toilets it sells through its catalog and Web site, Reuters reports.

Of executives who oversee facilities of 500,000-square-feet or more, 84 percent say they will invest in energy-efficiency plans this year, up from 56 percent last year, according to a survey by Johnson Controls. And what companies may lose in cash, they expect to gain in goodwill or customer loyalty.

FedEx said in February that it was using money-saving strategies such as old-fashioned fuel surcharges, equipment upgrades and the elimination of left turns because they waste fuel.

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