In an era when efficiency and cost-effectiveness are paramount for construction companies, telematics technology emerges as a game-changer, especially in the management and maintenance of assets.
Telematics, a method of monitoring assets by combining GPS technology with on-board diagnostics, can track the location, movement, status, and behavior of equipment and vehicles within a fleet. This technology translates to myriad benefits, with perhaps the most significant in the maintenance arena: Telematics creates a pathway to major cost savings in asset maintenance as well as streamlining the maintenance process, making it more effective and less time-consuming.
That last point is particularly notable. Instead of having to stay mentally alert on which construction equipment is due for service (which tends to be reactive based on overdue service), telematics software can track the hours on a machine and proactively notify heavy equipment managers when there is an upcoming interval.
RAPIDLY MATURING MARKET
The rapid maturation of the telematics market illustrates the growing popularity of this technology. The global construction and heavy equipment telematics market size is projected to reach $1.498 billion by 2026, from an estimated value of $676 million in 2021, at a staggering CAGR of 17.2 percent. The increase in demand for telematics solutions in off-highway equipment, along with government mandates on the safety and security of off-highway equipment, are the driving factors expected to substantially boost the use of this technology for construction and heavy equipment.
First, a quick note about the two distinct types of telematics:
OEM telematics: This technology is installed directly by manufacturers of machines and construction equipment. These systems are specifically designed for these machines and offer extensive functions regarding technical data and sensor technology, particularly as it relates to machine performance and maintenance.
Retrofit telematics: These products are installed after the purchase of the machine or equipment and can be added at virtually any point in the equipment’s lifetime. These systems are often cheaper than OEM telematics and offer similar features.
Both versions of telematics have their strengths and weaknesses. As a result, the two technologies are waging a battle for supremacy when it comes to maintenance telematics. Regardless of the version, telematics in general remains somewhat misunderstood, especially in terms of the benefits it offers. Here’s a look at how construction companies can leverage telematics to optimize their equipment maintenance process and improve their bottom line.
REDUCING MAINTENANCE COSTS
Predictive maintenance: Telematics systems enable predictive maintenance, which can drastically reduce costs. By monitoring vehicle health in real-time, telematics can predict equipment failures before they occur. Sensors can track everything from engine performance, fuel usage, and tire pressure to oil pressure, brake wear, and battery health. The data allows fleet managers to identify potential issues early and perform maintenance only when needed, preventing unnecessary routine checks that often lead to excessive spending.
Optimizing field usage and reducing idle time: Fuel is one of the biggest expenses in vehicle operation. Telematics can monitor driving behaviors that lead to excessive fuel consumption, such as idling, hard braking, and rapid acceleration. By analyzing this data, companies can imple¬ment training programs to encourage more fuel-efficient driving habits among their operators, leading to sizable cost savings.
As a corollary, it’s important to include the increase in uptime. The ability to program alerts with sufficient lead time is a key feature. Seeing that a 250-hour service is approaching when a piece of equipment hits 200-225 hours allows time to schedule the work at the most efficient and least disruptive time.
Enhancing vehicle utilization: Telematics data can help companies ensure that vehicles and equipment are used efficiently and not sitting idle. By understanding usage patterns, companies can balance the workload across their equipment, potentially reducing the total number of assets needed and thereby lowering the maintenance costs associated with each asset.
IMPROVING THE MAINTENANCE PROCESS
Automated maintenance scheduling: Telematics systems can automate the scheduling of maintenance tasks based on real-time data and historical performance, reducing the risk of downtime due to unexpected breakdowns and extending the lifespan of the asset.
Customized maintenance plans: With detailed data on each asset’s usage and condition, telematics allows companies to create customized maintenance plans instead of relying on generic schedules. As a result, assets that are used more often can receive more frequent maintenance, while those with lighter usage can have less frequent servicing.
Keep in mind that maintenance is not just engine service but also safety intervals such as DOT inspections, calibration of equipment, crane inspections, dielectrics, and other specialty type schedules that may be specific to a type of equipment.
Streamlined maintenance records: Telematics simplifies the documentation process, keeping accurate and easily accessible records of maintenance history, asset usage, and performance data. This centralized information system enhances decision-making regarding vehicle repairs, replacements, and overall fleet management. Ultimately, this ensures compliance with regulatory requirements and will provide relevant material in the event of any warranty recovery claims.
Enhanced supplier and workshop communication: Sharing telematics data with suppliers and workshops facilitates more effective communication regarding vehicle maintenance needs. This ensures that the right parts are available when needed and maintenance can be performed promptly, reducing asset downtime, and improving the efficiency of the maintenance process. Tying in your service providers can provide a tremendous safety net to your asset maintenance and the redundancy to ensure that assets don’t exceed maintenance intervals, key inspections, or calibrations.
For construction companies and fleet managers, the adoption of telematics in vehicles and construction equipment presents a substantial opportunity to reduce costs and enhance the effectiveness of the maintenance process.
As the construction industry continues to evolve, leveraging telematics will be key to staying competitive, ensuring operational efficiency, and maximizing profitability.
Jason Perez is the CEO of YARDZ, a leading asset-management platform. He can be reached at jason@yardz.com. Follow him at www.linkedin.com/in/thejasonperez.