If contractors are buying new heavy construction equipment or renting it from a major rental company, chances are that it includes connected technology. Major manufacturers are shipping virtually all of their new equipment with embedded telematics; Berg Insights estimates that there will be 4.6 million such systems active by 2021.
Manufacturers are already using the data from connected construction equipment for quality improvement, predictive maintenance, and value-added digital services that are available to equipment owners through subscription services. Likewise, major equipment rental companies like Caterpillar, Sunbelt, and United Rentals are using telematics data to improve the rental experience and reduce operation costs.
However, there’s more value that connected construction equipment can deliver to construction companies and the ecosystem with which they do business. Here are eight emerging use cases.
1. Equipment theft prevention and recovery
According to the latest theft report published by the National Equipment Register in the United States, construction equipment theft is a $400 million problem (and perhaps as high as $1 billion) in the United States alone, with only 21% of stolen equipment recovered. The most commonly stolen equipment types are:
- Mowers, riding or garden tractors;
- Loaders, including skid steer, wheeled and backhoes; and
- Tractors.
Connected equipment is much easier to find via location data that can be sent to the manufacturer and subsequently shared with the owner or an insurance company (with appropriate consent from the equipment owner). In addition, geo-fencing applications become much easier to use with seamless information flows from the equipment itself. These applications can help companies detect crime as it is happening.
2. Accident reconstruction
Heavy equipment is involved in some of the most serious, costly construction accidents. Information about the movement and condition in equipment at a particular point in time could assist with accident reconstruction and help companies, insurers and public agencies to establish best practices that reduce the incidence of future accidents.
3. Insurance underwriting
Connected equipment data can also support insurers in their effort to provide accurate underwriting and fair premiums to the construction industry. Underwriters might want to use location data and movement, equipment utilization, operating behaviors or other data points to more precisely characterize risk.
4. Automated claims documentation
Documenting construction claims can be painful and time-consuming. When it comes to equipment usage, contractors are depending on operators to record everything right. Usage data that comes directly from a piece of equipment can be incredibly valuable in proving what was used and when it was used. Connected equipment can generate precisely timestamped data on when ignitions were turned on and off and when pieces were operating.
5. Predictive maintenance
Nearly 35% of fleet operations and fleet management professionals cite equipment and vehicle maintenance as one of their top two expense areas, according to a global survey published by Teletrac Navman. In addition to the predictive maintenance initiatives driven by OEMs such as Caterpillar and John Deere, there is a whole ecosystem of software providers and aftermarket servicing facilities that could deliver valuable insights to construction companies based on equipment performance data and trouble codes. With the equipment owner’s permission, trouble codes could even trigger service calls from their independent servicer of choice.
6. Fleet management and optimization
Many construction companies have mixed fleets that include owned equipment from different manufacturers and rented equipment from multiple sources. Coordinating across all of these different companies can be a challenge. With connected construction equipment, it’s possible to have software that provides one interface and one set of optimization algorithms for missed fleets. These could cover everything from equipment deployment, route planning, fuel purchase planning and maintenance scheduling.
7. Fueling services
While large jobsites have economies of scale when it comes to fueling, smaller sites experience a lot of inefficiency from refueling. There are a number of emerging consumer apps that offer on-demand fueling. Wouldn’t it be convenient to have smart fueling services that deliver fuel to a jobsite just when it’s needed?
8. Location-based supplier outreach
The equipment that’s located on a particular site is a strong indicator about the type of work being performed and the size of a project. Large suppliers are looking to build algorithms that detect the type of work being performed in the local area by identifying active construction equipment and suggest products and services to help the job get done.
Looking to the Future
We’re at the cusp of a new wave of innovation in the construction industry, made possible by connected construction equipment. These new insights, apps, and services promise to improve safety and efficiency, drive profitability and reduce risk.
