Why Contractors Should Consider Transitioning Their Fleet to Electric Vans

Author: Brett Knox
September 10, 2024 - 4 MIN. READ

As sustainability and cost-efficiency become increasingly important in the business world, more contractors are considering transitioning their fleets from traditional gasoline-powered vehicles to electric vans (EV vans). This shift is not just a response to environmental concerns, but a strategic decision that can provide long-term financial benefits, improve operational efficiency, and help future-proof the business. Here are several reasons why contractors should consider the transition to EV vans: 

1. Cost Savings on Fuel and Maintenance 

One of the most significant advantages of EV vans is the reduction in fuel costs. While gasoline prices fluctuate, the cost of charging electric vehicles is consistently lower, especially for contractors who can charge their vans overnight at lower electricity rates. Additionally, EVs have fewer moving parts than traditional internal combustion engine vehicles, leading to lower maintenance costs. There’s no need for oil changes, fuel filters, or timing belts, and the brakes last longer due to regenerative braking systems in EVs. 

According to the U.S. Department of Energy, electric vehicles can reduce fuel costs by up to 50% compared to gasoline vehicles, and maintenance costs by up to 40% over the vehicle's lifetime. These savings can make a big impact on contractors operating large fleets.  

2. Environmental Benefits 

Transitioning to EV vans aligns contractors with sustainability goals, which are becoming increasingly important for both clients and regulatory bodies. EVs produce zero tailpipe emissions, reducing the carbon footprint of a contractor's fleet and helping to meet regulatory standards aimed at cutting greenhouse gas emissions. This can be a competitive advantage as more companies and municipalities are prioritizing sustainability when choosing contractors. 

Furthermore, electrifying a fleet can improve a company’s image, attracting eco-conscious clients and enhancing the brand’s reputation as an environmentally responsible business.  

3. Government Incentives and Tax Breaks 

Many governments offer financial incentives to encourage businesses to adopt electric vehicles. These incentives include tax credits, rebates, and grants for purchasing electric vans, as well as subsidies for installing EV charging infrastructure. In the U.S., the federal tax credit for electric vehicles can be as high as $7,500 per vehicle, depending on the make and model. 

In addition to federal programs, many states and municipalities offer their own incentives, further lowering the cost of transition. Contractors who switch early can take full advantage of these benefits before the incentives begin to phase out as EV adoption increases. 

4. Operational Efficiency 

EV vans provide operational advantages that make them well-suited for contractors. The instant torque of electric motors, even with a full load, allows for smoother driving in urban environments with frequent stop-and-go traffic. Moreover, many modern electric vans come with advanced telematics systems that enable fleet managers to monitor vehicle performance, track energy usage, and optimize routes for maximum efficiency.  

One of the biggest considerations for contractors is the battery range of the EV.  The newest Ford e-Transit has a range of 125 to 159 miles.  If you have technicians, parts runners or other employees that don’t drive long ranges, this could make economic sense.  Allow them to charge overnight at their home or your branch so they’re fully charged each morning.  If their routes have DCFC (Level 3 chargers) available, they can recharge their EV to 80% in approximately 30 minutes.  

Another new innovation coming in 2025 is Ram’s new Ramcharger.  Although initially expensive, it provides 145 miles of battery-only range but has a v6 engine that acts as a generator to recharge the batteries.  As you drive the truck, it recharges the batteries so you get a range of 690 miles on a tank of gas.  We think this is the perfect technology for contractors because you get all the benefits of an EV but you’ll never run out of power as long as you have gasoline in the tank. 

5. Future-Proofing the Business 

As governments worldwide introduce stricter emissions regulations, businesses will eventually be required to reduce their carbon footprints, especially in transportation. Cities like London and Paris have already implemented low-emission zones, and similar policies are being adopted across the U.S. and Europe. 

Transitioning to EVs also ensures that contractors are not left behind in technological advancements. As the EV market grows, innovations such as vehicle-to-grid (V2G) technology will allow EV fleets to become energy assets, potentially selling electricity back to the grid during peak times. 

6. Improved Driver Experience 

Electric vans often offer a more comfortable driving experience compared to traditional vehicles. EVs are quieter, produce less vibration, and have smoother acceleration. This can lead to less fatigue for drivers, especially on long routes or during a full day of work. A more comfortable and efficient vehicle can help improve employee satisfaction and retention, which is particularly important in industries where skilled drivers are in high demand. 

The Bottom Line 

Transitioning to electric vans offers contractors numerous benefits, from significant cost savings and sustainability advantages to enhanced operational efficiency and regulatory compliance. As EV battery range continues to improve and more incentives become available, now is the perfect time for contractors to consider electrifying their fleets and position themselves for success in an increasingly eco-conscious and cost-sensitive market. 

By making the switch, contractors not only future-proof their business but also contribute to a cleaner, greener future for all. 

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