Rising material costs and supply chain disruptions are cutting the profitability of large construction companies. Winning in this environment means finding new ways to improve efficiency and get the most from every asset. Heavy equipment OEMs and dealers are in a unique position to help their customers lower the hourly operating cost of their equipment and reduce the total cost of ownership through asset lifecycle management enabled by the industrial IoT, specifically, construction equipment telematics.
Adding asset lifecycle management services creates new revenue streams for OEMs and dealers. Here are three ways in which data from heavy equipment telematics, visualized in construction fleet management software such as Fleet or in dedicated equipment maintenance software, supports these service offerings.
1. Driving proactive maintenance and repair
According to Global Market Insights, Inc., the construction equipment aftermarket is projected to exceed $30 billion by 2027. In other words, providers of parts and services can generate substantial additional revenue. Telematics data can drive a steady stream of maintenance and repair business.
Heavy equipment telematics devices automate the collection of engine hours and usage hours, which OEMs and dealers can use to drive just-in-time preventive maintenance for customer-owned equipment. This data can be visualized in iOn or sent via application programming interface (API) into dedicated maintenance software.
Preventive maintenance alerts configured in iOn notify both service providers and customers when maintenance is due and offer a smart way for dealers and OEMs to stay in front of their customers.
In iOn, OEMs and dealers can also view diagnostic trouble codes (DTC) reported by a vehicle’s onboard diagnostic system and configure fault alerts that notify them, and the customer, when a fault is reported. Fault alerts allow service teams to immediately reach out to the customer to schedule service. Prompt response to fault codes minimizes equipment downtime and helps customers avoid more expensive repairs down the road.
Either in iOn or in integrated maintenance management software, service triggers can initiate a GPS location of the equipment so service technicians can find the asset faster, which results in better customer service. These triggers can even initiate a maintenance work order.
2. Informing asset replacement schedules
Among the most difficult decisions owners and operators must make is when to repair, rebuild or replace a piece of heavy equipment. As equipment ages, it depreciates faster and costs more to maintain and operate, which eventually renders it unprofitable. Disposing of an asset at the right time optimizes its resale value and delivers the maximum return on investment.
OEMs and dealers have the opportunity to work proactively with customers to help them protect the resale value of their equipment and plan for purchases of new equipment that offers better fuel efficiency and the latest features. Here again, data from construction equipment telematics and fleet management software is key.
Metrics such as engine hours, fuel consumption and historical maintenance costs are essential to heavy equipment lifecycle cost analysis. Even utilization rates factor into repair, replacement and disposal decisions. Underutilized heavy equipment not only makes less money for construction companies, it also may deteriorate faster if gaskets and seals dry out.
3. Enabling procurement planning
Proper procurement planning ensures that construction companies have the equipment they need to perform work on schedule. But right-sizing and right-typing a construction fleet isn’t always easy.
Utilization data, available via reports in iOn, can help dealers and OEMs tailor their communications with customers around new equipment purchases.
If a particular asset is deployed at a high frequency, utilization data can be leveraged to convince the customer that acquiring another unit would help prevent equipment-related downtime. Visibility into underutilized assets is equally valuable. If a certain type of equipment is underutilized, OEMs and dealers can adjust their sales approach and market equipment that better aligns with the customer’s business needs.
For construction companies, staying on top of maintenance and repairs and making data-informed lifecycle decisions is difficult, time-consuming work. By leveraging construction equipment telematics and an industrial IoT solution such as iOn, OEMs and dealers can add value to these companies through asset lifecycle management services. It’s a win-win scenario that helps contractors maintain their profitability and positions OEMs and dealers as trusted partners focused on building long-term relationships with their customers.
Discover how CalAmp enables the industrial IoT through heavy equipment telematics and the enterprise-grade CalAmp iOn application.