An Introduction to Telematics Systems in Construction Equipment
Telematics systems are a revolutionary technology that are increasingly being installed in construction equipment by equipment manufacturers. These advanced systems combine GPS technology, monitoring sensors, and on-board diagnostics to track, log, and report data via cellular networks on the performance and operation of construction equipment. With easy access to data via a web portal, construction companies can gain insights on various machine systems, such as GPS location, fuel consumption, idle times, and machine alerts. Equipment owners are utilizing this data to improve productivity and reduce operating costs.
Asset Allocation: The Key to Maximizing Efficiency
Telematics data can help construction companies analyze how much each machine is being used on active sites. This analysis can help companies determine whether they are allocating too much or too little equipment to a jobsite. By using telematics data to understand where and how much equipment is being used, construction companies can adjust their fleet size to meet their needs and reduce rental or ownership costs. The key to maximizing efficiency lies in the proper allocation of assets.
Maintenance & Repair Schedules: Accurate Scheduling Saves Time and Money
Telematics systems provide data on various systems, such as fuel consumption and fault codes. By integrating this data into a maintenance management program, construction companies can schedule and perform preventive maintenance and repairs accurately. Telematics systems can also alert companies when equipment isn’t operating at peak performance, which could indicate a component failure that needs to be addressed. Identifying problems early can help extend the life of equipment and reduce repair and labor costs. Accurate scheduling saves time and money in the long run.
Operator Performance: Safe and Efficient Operation of Equipment
Telematics data can help construction companies identify bad habits of equipment operators, such as prolonged idling time, speeding, erratic movements, and overloading. Monitoring telematics data can help identify overworking or misusing of equipment by operators. Correcting this behavior can lead to reduced labor costs, avoid accelerated wear on equipment, and result in safer worksites. Safe and efficient operation of equipment is critical to the success of any construction project.
Reduce Theft: Protect Your Assets
Telematics systems with GPS tracking and geo-fencing can alert construction companies when equipment leaves a jobsite or is being operated outside of scheduled work hours. Some systems even allow companies to remotely shut down the engine if unauthorized use is detected or prevent it from being started during set hours. With telematics and GPS technology, construction companies can track and locate all their equipment from one location and provide the local authorities with its location in the event equipment goes missing. Protecting your assets is essential in the construction industry.
Reduce Fuel Consumption: Lower Costs and Increase Efficiency
Telematics systems can help construction companies reduce fuel consumption by monitoring idle time versus work time on equipment. Implementing best practices to reduce idle times can result in better fuel efficiency, extend engine life, and reduce repair and maintenance costs. Lowering costs and increasing efficiency is key to staying competitive in the construction industry.
Fuel Tax Refunds: Save Money on Off-Road Fuel Use
Construction companies that use fuel for off-road purposes are eligible for refunds on the federal and state level excise taxes on gasoline and diesel fuel. Telematics data can easily provide records of how much fuel was used off-road, combining GPS tracking data and fuel consumption information. Saving money on off-road fuel use is a great way to increase profits.
Insurance Premiums: Reduce Costs
Some insurance providers offer discounts or reduced deductibles if equipment has GPS tracking with geo-fencing alert capabilities installed. Monitoring and correcting unsafe operating behavior by employees can reduce the number of accidents on jobsites, which could help save on insurance costs. By taking advantage of these discounts, construction companies can save money and invest in other areas of their business.
Job Estimates: Accurately Predict Costs
Telematics data can lead to more accurate job costing and estimates by providing machine hours and fuel usage to determine operating costs that can be combined with labor costs for more accurate billing. Analyzing past data on previous projects can help construction companies better predict the cost of a specific task or job on future projects. Accurately predicting costs can help construction companies bid more competitively and win more jobs.
Manage Operating Expenses: Control Costs
Construction companies can use telematics data to keep track of the operating costs of their equipment. Telematics data can help identify areas where operating costs can be reduced, such as by reducing idle time or correcting operator behavior to extend component lifecycles and reduce the frequency of preventive maintenance. Controlling costs is essential in any business, and telematics can help construction companies do just that.
Improve Productivity: Work Smarter, Not Harder
By having a better understanding of how, when, and where construction equipment is being used, telematics data can lead to increased productivity on the jobsite. Operator performance can be coached when equipment isn’t being operated under normal parameters, and overworking or underutilizing equipment can be better managed by understanding telematics data. Knowing where each piece of equipment is at all times and how much each one is being used will allow companies to better deploy their equipment to the sites where they are most needed. Working smarter, not harder, is the key to success in the construction industry.
In Conclusion: Embrace Telematics for a More Profitable Business
Telematics systems are proving to be valuable tools for construction companies in improving productivity and reducing operating costs. The benefits of telematics systems include asset allocation, maintenance and repair schedules, operator performance, reducing theft, reducing fuel consumption, fuel tax refunds, insurance premiums, job estimates, managing operating expenses, and improving productivity. By utilizing telematics data, construction companies can make more informed decisions about their equipment and increase efficiency on the jobsite. Embrace telematics for a more profitable business.
