Four Trends Driving Service Effectiveness

June 11, 2024
Technology and data enable dealers and manufacturers to better serve fleets.

The construction equipment industry is undergoing a significant transformation, driven by technological advancements and the increasing recognition of data's value. Original Equipment Manufacturers (OEMs) are facing challenges such as global competition, price deflation, and rising commodity costs, which are squeezing profit margins more than ever before. Additionally, the widening skills gap significantly drives up service costs.

According to a recent benchmark report focused on industrial machinery published by Aquant,  within leading construction equipment companies, the costs associated with bottom performers are only 20% higher than those of the top performers. However, the lowest-performing organizations have the most expensive workforce gap, with their bottom performers costing 128% more than the top-performing employees.

The good news is that OEMs have the power to change this. According to Aquant’s report, if all employees had the knowledge and skills to perform like the top 20% of the workforce, service costs could be reduced by 28.

There are four key service trends poised to transform construction equipment management. These trends underscore the importance of prioritizing data management through AI solutions. By doing so, construction teams can stay ahead in a rapidly evolving industry and shift their service business from a cost center to a profit center.

1. How improved data sharing enhances symbiosis between dealers and OEMs

The relationship between dealers and OEMs in the construction equipment industry is becoming increasingly interdependent. Enhanced data sharing is at the forefront of this evolution. Dealers and OEMs are moving toward a more collaborative approach, where data from all work orders—not just warranty claims—are shared.

About the Author

Assaf Melochna

Assaf Melochna’s experience incorporates strong leadership skills built upon a strong technical foundation. He is an expert in service, and has business and technical expertise in enterprise software. Assaf started Aquant with his co-founder Shahar with the vision of helping service companies transform the way they deliver service. Prior to starting Aquant, Assaf spent 10 years at ClickSoftware where he served in various positions in solution consulting and product innovation. Assaf brings a unique approach from his experience as a Major in the intelligence forces (IDF) where he specialized in turning massive data to knowledge, and knowledge to actions.