Harness technological advancements in heavy equipment for a competitive advantage.
Investing in tech-enabled heavy equipment can drive efficiency, increase profitability, and help you outperform your competition. Below, we’ll take a deeper look at the benefits of tech-enabled equipment and discuss what you should consider before making a purchase.
Growth of Tech-Enabled Heavy Equipment
Although architecture, engineering, and construction (AEC) are some of the biggest industries worldwide, they have historically been slow to innovate and digitize. However, the AEC tech ecosystem has recently experienced an investment surge, propelling heavy equipment technology forward. Tech-enabled heavy equipment refers to machinery integrated with advanced technologies, such as telematics, IoT, and data analytics, to enhance performance and efficiency.
According to McKinsey & Company data, global investment in AEC tech grew to $50 billion between 2020 and 2022. This influx of capital has accelerated the adoption of smart technologies in heavy machinery. One 2022 study surveying over 500 architecture, engineering, and construction professionals found that 74% of respondents plan to implement new technologies to overcome challenges in their field.
What is Fleet Telematics Technology?
Fleet telematics is one of the fastest growing forms of heavy equipment technology. According to the Fleet Advisory Hub™ insights program, over 60% of U.S. fleet operators have adopted telematics at some level.
Fleet telematics integrates telecommunications and informatics to monitor and manage heavy equipment fleets. It uses GPS systems, onboard diagnostics, and other data-gathering tools to track vehicle locations, performance metrics, and driver behavior in real time. This data is then transmitted to a central system where it can be analyzed and used to make informed decisions.
What Are the Advantages of Tech-Enabled Equipment?
Improved Productivity
When it comes to improving productivity, knowledge is power. Telematics-enabled equipment provides equipment owners with real-time tracking and monitoring capabilities, allowing for optimized fleet management and increased productivity.
Dakota Smith, Head of Operations at Bevel Financial, emphasizes the benefits of tracking heavy equipment data using telematics, saying, “This data-driven approach enables businesses to maximize equipment utilization, identify inefficiencies, and make informed decisions about resource allocation, ultimately leading to improved operational performance and cost savings.”
Reduced Downtime and Repair Costs
Telematics-enabled equipment provides a proactive approach to equipment maintenance. It offers continuous monitoring capabilities to help prevent unexpected downtime caused by mechanical failures. By continuously tracking diagnostics like engine health, tire pressure, battery status, and fluid levels, telematics enables proactive maintenance scheduling. This helps keep equipment in optimal condition and reduces costly repairs.
Increased Equipment Lifespan
Proactive maintenance and real-time monitoring extend the lifespan of heavy equipment, providing a higher return on your investment. This increases the equipment’s long-term value and may lead to more favorable financing terms, improving overall business asset management.
Informed Purchasing Decisions
Heavy equipment purchases are a considerable investment, so evaluating the quality of used equipment before expanding your fleet is essential.
“Telematic-enabled equipment provides potential buyers with detailed machine history reports, enabling them to make informed decisions about used equipment purchases based on actual usage data, maintenance records, and operational insights,” says Smith. “This comprehensive information not only helps buyers maximize the residual value of their investment but also gives finance companies greater confidence in the quality of the collateral, reducing risk and potentially leading to more favorable financing terms.”
Considerations Before Purchasing Tech-Enabled Equipment
Bevel Financial Senior Manager Jason Whetshine advises business owners to base equipment purchasing decisions on data, saying, “You don’t buy a car without looking at Carfax, so why would you buy a piece of equipment without looking at the telematics?”
Heavy equipment telematic systems collect and analyze vast amounts of data, providing buyers insights into real-world performance across various makes and models. This wealth of information allows potential buyers to compare equipment based on actual usage metrics, efficiency rates, and reliability data rather than relying solely on manufacturer specifications or anecdotal evidence. Buyers can use this information to identify which models or configurations perform best in conditions similar to their operational requirements.
Choosing the right financing partner to secure a loan for your investment is equally important. Look for lenders who understand the unique benefits and considerations of telematics-enabled assets, as they’re more likely to offer competitive terms that reflect the equipment’s true value and potential.
Your Financing Partner For Tech-Enabled Heavy Equipment
At Bevel Financial, we’re experts on tech-enabled equipment and its applications. This deep understanding allows us to provide more accurate valuations and tailored financial solutions for your next heavy equipment purchase. Contact us today to secure business financing for your next investment.
