We are in the process of reviewing the products introduced over the past 12 months for our Top 100 New Products of 2024, and we are reminded again that that process of improvement has radically shifted in recent years. Manufacturers used to tout bigger engines, larger hydraulic pumps; now, it’s technology packages that enable those engines and pumps to work more efficiently.
As a manager, “next generation” has come to mean something similar to the latest iPhone. It will be more expensive, and most of the improvements are not in the hardware. Construction equipment is morphing from a hardware decision to one about software. Indeed, Jonathon Spendlove, manager of precision construction at John Deere, likens machines to “a platform for software-based solutions.”
Ray Gallant, VP sustainability and productivity services at Volvo Construction Equipment, recently told a group of engineers that the industry is at a unique moment of history where not one innovation is causing a shift, but rather three are converging at one point in time: sustainable power, digitization, and automation.
It’s enough to make a manager’s head swim because they’re not discussing merits of a phone’s messaging app. They are determining the value of a range of technologies and software that promises efficiency benefits for their organization; but at a price, either upfront or through subscription services.
The future promise is clear. Eventually, construction sites will feature numerous machines able to “see” each other, report the quantity of work they are performing each hour and shift, and either function without an operator or with an operator performing minimal actions. Look at some of the mines around the world, or a nearby farm—technology is changing operations. That’s the goal of every OEM investing in technology solutions or in partners that specialize in technology solutions.
Not every equipment manager is looking for the latest gee-whiz solution, however. Some are simply seeking ways to move more dirt, more safely, where fewer workers are available to run the equipment. They are not looking to reinvent their fleet, but they would invest in technology that has immediate and profitable benefits.
For manufacturers, that means tailoring tech to their customers’ current needs. For fleet managers—of all sizes—that means having a firm grip on operational costs, fleet values, and machine performance, and at least some willingness to consider a technology that is not as easy to understand as an engine or pump.
