Telematics Data: The equipment management money saver
Budgeting for a piece of equipment requires more than just considering the sticker price. From routine upkeep, like oil changes and monitoring track tension, to surprise breakdowns requiring undercarriage service, maintenance costs can add up very quickly. It’s no longer enough to simply purchase equipment and hope for the best.
Today, the power of collecting and analyzing data helps managers and contractors get the most utilization and ROI from their equipment. To put it simply, investing in an advanced telematics solution can be an equipment management game-changer.
By aggregating equipment data and utilizing predictive analytics, telematics provides greater insight over fleet maintenance and management – enabling managers and contractors to better identify and address the cost inefficiencies that often come with owning equipment.
Whether it’s catching an overheated dozer before it blows a gasket or spotting an underutilized piece of equipment before it starts collecting dust, a telematics solution can positively impact a contractor’s bottom line in more ways than one. Here’s a look at five areas of fleet management where data can help contractors make cost-saving decisions and alleviate some of the financial pain points tied to equipment ownership.
1. Increasing Utilization
One of the biggest challenges contractors face when growing their businesses is ensuring each piece of equipment is being used to its fullest potential. As the size of a fleet grows, so does the difficulty associated with managing it. Using telematics, contractors and fleet managers can track idle and run-time, so they can make more informed decisions concerning when to rent, sell or buy equipment. Instead of letting a machine collect dust in the corner of a lot, for instance, contractors can pinpoint what pieces of equipment could be rented out for extra cash. Assumptions once made about the utilization of a fleet can now either be confirmed or refuted by cold, hard data – resulting in greater ROI for contractors.
2. Proactive Maintenance
The old saying, “If it ain’t broken, don’t fix it,” doesn’t quite work for the construction industry. Contractors too often face unexpected breakdowns – such as an oil leak from an overworked engine – and end up eating those maintenance costs. However, telematics solutions allow contractors take a more proactive approach to equipment maintenance. With real-time visibility into equipment health, like oil levels, tire pressure and operator habits, telematics lets contractors see maintenance problems before they happen. So for example, if a contractor notices a piece of equipment has been utilized more hours than normal this month, they can service early or be on the lookout for any maintenance issues that might be on the horizon.
3. More Accurate Bids
Keeping track of costs and reporting throughout the duration of a project is no easy task. Not only are contractors charged with the responsibility of counting how many pieces of equipment are used, but also when, where and for how long. With telematics, you can skip the paper reports and manual data entry. Instead, project managers and equipment owners and operators replace messy and inaccurate logging with digital records. By monitoring equipment utilization and identifying a fleet’s location via geofencing, telematics can help provide contractors with the insights needed to accurately track costs and deliver more competitive bids.
4. Building Back-end Efficiencies
In addition to increasing the accuracy of equipment data, telematics solutions can also cut down on the time it takes for contractors to complete IFTA reports and hours of service logs. Rather than jumping between stacks of spreadsheets, contractors now have the luxury of using precise digital records to aggregate equipment into a single online platform. This boost in efficiency frees up contractors to focus on more important things such as moving their projects forward.
5. Meeting compliance standards
Starting December 18, 2017, a new law from the Federal Motor Carrier Safety Administration (FMCSA) goes into effect. Known as the, Electronic Logging Device (ELD) Mandate, fleet owners will be required to install devices in their commercial motor vehicles to record hours of service (HOS) digitally. Contractors who have yet to prepare for such standards should consider telematics as a possible solution to meet the ELD Mandate compliance. On top of automating mandatory reporting, telematics can open the door to this list of benefits, and more, including helping contractors and fleet managers avoid costly non-compliance fines.
While upfront costs may account for the biggest portion of a contractor’s budget, equipment ownership costs extend well beyond the initial purchase. To avoid some of the costs that come after signing on the dotted line – such as sudden breakdowns and inefficient operations – contractors should consider adopting a telematics solution that provides them with greater insight into the analytics, health and utilization behind their fleets.
XYZ Reality receives £20m to develop Assisted Reality
Founded in 2017, XYZ Reality aims to "revolutionise" the construction sector with its Engineering-Grade Augmented Reality (AR) solution, Holosite.
Designed to enable an on time and on budget delivery of construction projects, by eliminating building errors, HoloSite has been available to select customers through an early access programme and has already been used on projects totalling a value of over £1.5bn in the last year.
With approximately 98% of construction megaprojects facing cost overruns or delays and 7-11% of project costs being spent on correcting errors, XYZ Reality’s purpose-built integrated AR solution directly addresses these issues.
With its safety certified AR hardhat, cloud platform and in-built proprietary software, Holosite accurately positions high fidelity 3D design models on construction sites, enabling teams to build it right, first time. The technology system has been used on complex construction projects including data centres, pharmaceutical facilities and airports.
This funding will be used to accelerate the company’s ambition of transforming projects by preparing for HoloSite’s commercial launch in the USA and continuing investment in strengthening research and development. The company is also growing its London team to include key hires across technology, manufacturing, sales and marketing.
David Mitchell, Founder and CEO of XYZ Reality, said developing its engineering-Grade AR solution helping construction teams identify errors in real-time is just the start.
"The next phase is Assisted Reality, where our spatial computing technology will have the intelligence to automatically detect and report issues in the field. And ultimately, the goal is builders building from holograms. Our vision of developing world changing products aligns with Octopus Ventures’ mission of investing in companies that are powering the next industrial revolution. We look forward to building history.”
The latest round of funding is led by Octopus Ventures, one of the largest and most active venture investors in Europe, known for its commitment of investing in companies and founders that are changing the world. Octopus Ventures has a strong track record, spanning investment in health, fintech, consumer, B2B software, and deep tech. This includes WaveOptics, one of Octopus Ventures’ early investments in Augmented Reality, which was recently acquired by Snap Inc.
Rebecca Hunt, early-stage investor at Octopus Ventures, said: "We’ve always invested in entrepreneurs leading industry change and XYZ is doing just that. It's solving a massive problem that costs the construction industry billions every year, using its Engineering-Grade Augmented Reality solution to spearhead a shift in the sector’s approach. The founding team of David, Umar and Murray have deep domain and technical expertise, which we believe makes XYZ uniquely placed to drive this transformation.”
XYZ Reality also announces a new partnership with Mace, for the construction of a hyper-scale data centre in Europe. With speed to market being particularly essential for mission critical builds, HoloSite’s AR technology will have a significant role in supporting an accurate and time effective build for Mace, which last week appointed Jon McElroy its new Managing Director for International Technology.
Mace Technical Director, Stephen Henley, said: “Mace has built a reputation of redefining the boundaries of ambition, always bringing efficiency, innovation and responsibility to our projects. With the implementation of XYZ’s groundbreaking AR system, we continue to be committed to delivering projects faster, safer and better than ever before.”
Five years ago, Heather Bellini of Goldman Sachs Research expected virtual and augmented reality to become an $80 billion market by 2025.
But according to new research by global tech market advisory firm ABI Research, nearly 28 million augmented and mixed reality smart glasses will ship in 2026, while the total global AR/MR market will surpass $175 billion in the same year.
"Major tech players across hardware, software, and services look familiar in the consumer space, contributing to strong and consistent overall growth," says Eric Abbruzzese, Research Director for ABI Research. "Those big tech names, with active investment and product ranging from already available, to announced, to all-but-announced, are creating a consumer AR market that will be dynamic and welcoming rather than struggling and immature."