The advent of smart phones has contributed a lot towards the increased usage of telematics data by machine owners.

– E. Moses

Vice President – Division & National Head, Kobelco Construction Equipment India

How do you assess the technological trends in the construction equipment industry?

Globally, the CE industry has progressed in many ways with the induction of several new technologies in developed markets. The main driving force has been the strict emission and safety regulations in place in such markets as well as market forces spurred by customer expectations and the willingness to pay for Value additions which improve productivity and operational efficiency.

In India, the lack of similar legislations over the past couple of decades has extended the life-span of older technology driven machines because of their cheaper prices. Customers tend to adopt the attitude that such machines are also capable of “doing the job” albeit with some limitations or a higher operating cost. They are tempted to think that the lower Owning cost/ investment almost compensates for the projected “future savings” in fuel cost as well as a lower output.

Another factor which has encouraged this preference for cheaper equipment, comes from the Rental segment, which accounts for a sizeable share. Usually, the rental rates are fixed on hourly basis but the fuel is provided by the hirer at his own cost, which means that the Owner is not impacted by the higher fuel consumption. Ironically, primarily for this reason, a machine with premium features like lower fuel consumption but higher Owning cost, does not attract the rental operator. Lack of reliable life-cycle Operating cost data makes the case weaker for the premium machines.

How have you been able to leverage the advantages of Telematics, IoT, Big Data in your range of machines?

Telematics was introduced on our machines in India almost a decade back but the Users took some time to understand its utility in better managing their fleet. The advent of smartphones has contributed a lot towards the increased usage of telematics data by the machine owners. They are able to track their machine data from any location and can see the machine location as well as various useful performance data like machine utilization, idle times, fuel consumption, operating modes used, service maintenance alerts, etc.

Our telematics (Geoscan) is also enabled with self-diagnostic features which alerts the support technicians through error codes based on which they can address them even remotely. IoT is also a common feature in most modern machines as various components can communicate with each other and deliver the best combined efficiency in productivity.

A large pool of data is generated from each machine and this is duly processed and analyzed at the back-end. Meaningful summaries and trends are shared with the Owners for improving efficiencies and overall performance and upkeep of their units.

How have these technologies positively impacted your site management as well as productivity, reliability and efficiency of construction machines?    

Our engineers are well-trained to interpret the machine performance data and help the users get the best from their machines. This covers Operating practices, maintenance trends, reduction in fuel consumption, minimizing ‘idle’ time, extending the service life of main components, etc.

Our customers have started opting for a closer association with our Dealer partners for the regular upkeep of their machines well beyond the warranty/extended warranty periods as they see multiple benefits of doing so. They have witnessed a higher machine uptime, faster restoration in case of any issue, scheduled and pro-active maintenance leading to consistent productivity, periodic trainings in Operation & daily maintenance, improved Safety, higher resale value, etc. There is a clear trend to collaborate in the long term for a win-win outcome.

What are the customer preferences in terms of technology in CE?

Customer preferences have been growing over the past few years as more and more features are introduced by one or the other OEMs in the Indian market. These features bring obvious advantages which benefit the Owner in various ways, some of which have improve fuel savings or the operating cycle, which, in turn, increases the machine output. Also, there are durability features which improve machine uptime and increase the service life of components. All these combine to substantially reduce the Operating cost on the one hand, and improve the earning potential by raising revenues. The cumulative impact of these pluses over the life-time of the equipment make it a clearly preferred choice, compared to cheaper machines without many of these features.

Easy access to online information on what is being offered in other markets is improving customer awareness and interest in those which benefit them directly. Fuel saving (Fuel being the largest single cost factor at over 50% of operating cost), faster operating cycles, and enhanced durability are definitely the sought-after features.

What do you think are the major challenges in replacing the legacy systems with new technologies in construction equipment? Is cost a deterrent? 

Historically, we have been followers of international trends with our own local tint. We still have some catching up to do and this is also due to the delayed implementation of emission, safety and other regulations. The process is now being hastened but there are challenges. OEMs who continue to offer machines with legacy systems have enjoyed an upper hand with their cheaper offerings and garnered higher market shares – which is like a “double advantage”.

Things are expected to change in the not-so-near future but the accumulated advantages enjoyed over the years will allow such manufacturers to adopt the minimum/ threshold level of compliance so that they can continue to have an edge. The price sensitivity of customers may soften the impact of the new regulations and might even allow them to thrive, although with a reduced advantage.

For the premium segment players, the present challenges may be marginally set off but they will have to work a lot on improving customer awareness of the various “Value additions” that they offer and how they translate into much higher benefits over the life of the equipment through higher fuel savings, increased output and greater durability and reliability. Like they say in Hindi – “Mehngaroye ek baar, saataroyebaarbaar”. Simply put, it implies that one who invests in a costlier equipment with better features may feel the pinch at the time of purchase but gains over its lifetime. Those who make the other choice, have many regrets after the initial saving.

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