Increase Profitability With Equipment Performance Benchmarking
Date Posted: November 15, 2019
Posted In: Ideas,
From Construction Business Owner: Every minute a piece of equipment sits idle on your jobsite, it’s robbing you of time and money. Excavators, dozers and other machines are the workhorses of construction sites, and they cost—whether they’re working hard or sitting idle. That’s why it is essential to optimize the use of your equipment if you want to maximize profits.
The reasons behind low equipment utilization vary by jobsite, but the common denominator is that underutilization can create cost overruns and move a project off budget. Some typical reasons equipment sits idle are:
- Rental equipment is kept on the job longer than necessary
- Equipment is hoarded because procurement processes are too much of a hassle
- A lack of visibility across operating groups or projects creates a poor line of sight into the field
Too often, contractors have a blind spot around equipment utilization. And it’s understandable—you can’t manage what you can’t measure. Fortunately, blind spots can be resolved by leveraging digital tools, including low-cost sensors, GPS technology and equipment telematics, as well as today’s new generation of high-powered, cloud-based software and services.
Technology makes it possible to manage both owned and rented equipment more efficiently and provides valuable information about location, use and performance. These tools create a single digital record, which leads to more informed decisions. This can reduce days past due on rentals, pull unnecessary equipment off your rental books and increase the utilization of owned machines.