The cyclical nature of the construction industry makes maintaining margins a constant challenge. In lean times like today, margins are squeezed as more companies bid for fewer jobs. The rising costs of capital and materials, along with the shortage of skilled operators, also chip away at potential profits.
One way to combat these pressures is through effective equipment management. Equipment management can do a lot to reduce costs, boost efficiency and substantially improve your bottom line.
Regardless of the number of machines you run, the equipment management equation is pretty simple— it boils down to monitoring and using your equipment to ensure that it delivers the maximum amount of work for the lowest possible cost.
It sounds simple, anyway, but achieving that goal requires focusing on several key factors:
Traditionally, equipment management data has been collected with checklists, spreadsheets and human memory—all of which can be tedious, expensive, error-prone and slow to get acted upon. But now, there’s a better way to get the facts you need to manage your equipment for maximum value.
Technologies built into today’s construction equipment make it easy to gather accurate, up-to-the-minute information about your equipment. Where it is. How well it’s working. When it’s due for service. If there’s something wrong with a machine system. If it’s being misused somehow.
And that information, in the form of electronic equipment data, can be transmitted right to you via VisionLink®, web or mobile. You don’t need to have someone go get it. And you don’t have to spend precious time crunching numbers because a lot of the analysis is done automatically by advanced VisionLink software.
In the end, what you get is useful information that lets you make decisions faster. Decisions based on facts, not guesswork. Decisions that can help you improve your business.
The benefits of equipment management help your company achieve four important business objectives:
Control Costs — When you can see what your real costs are, you can take steps to bring them down. Monitoring technologies can help by:
Accurate cost tracking can also give you the foundation for analyzing repair and maintenance and determining the optimum time for major overhauls or replacements.
Improve Operations — When you know exactly where your machines are and when they’re due for maintenance, you can make better, more informed operational decisions. Equipment management helps you:
Equipment management helps you:
Manage People — Any equipment management program has to take into account the knowledge and habits of the people most aware of the needs of the machine—the operators. As the first line of defense for your equipment, operators need to be fully aware of how their actions impact your fleet.
Information from Cat® Product Link™ can:
Attention to training and company culture can also yield measurable results in how well your people take care of all your business assets and how motivated they are to help your company build long-term success.
Reduce Risk — The National Insurance Crime Bureau reports that the construction industry loses more than $1 billion annually from equipment and tool theft, a figure that grows by approximately 20% each year. And the National Equipment Register notes that only about 10% of those stolen assets are ever recovered.
Theft is just one of the risks that equipment management technology helps you avoid. Cat technologies also help reduce your risk by:
Cat EM Services (Equipment Management Solutions) can show you how easy it is to put the latest technologies to work for your business. Plus, EM Services offers specialized advice and targeted services that will help keep your business a step ahead of most of your competition.
Visit www.cat.com/EMServices or contact your Cat dealer to learn how EM Services can help you get more value from your equipment on every job, every day.