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LEAD STORY CONSTRUCTION EQUIPMENT

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investments as well as increasing industrialization investments in To take advantage of the electrification trends, CE OEMs must
infrastructural sectors has made the global pervious concrete quickly invest in R&D and pilots to define their alternate fuel strategy,
paving market a catalyst for new constructions all over the world. since they could see profit pools decline by as much as 25% if they
If global trends are anywhere to go by, today, contractors that do not pursue innovation. At the same time, they should take note
specialize in grading, excavation, paving, or other work that can of emerging business models that incorporate new technologies,
often involve remote locations and dispersed teams need a such as site-charging infrastructure, battery swapping, and battery-
connected and collaborative approach. This approach includes as-a-service, since these may reshape the CE value proposition.
working with up-to-date information flows that enable seamless OEMs that take the lead with electrification may gain a first-mover
communication among team members—whether in the advantage. Demand-forecasting tools are becoming increasingly
back office, the job trailer, or out in the field. Selecting the right important as markets get disrupted and rapidly evolve. To thrive
compaction equipment might seem like an easy task but taking amidst these changes, CE OEMs must be able to estimate future
the time to look at how each feature impacts the overall operation demand by using data-driven, analytical models that allow them
can have big payoffs. From cross-mounted engines to compact to make rapid adjustments to production and supply chains.
footprints, it’s these features that feed a contractor’s productivity, Improved demand-forecasting models drive benefits in multiple
uptime and, most importantly, profits. areas, including revenue generation, cost control, and capital
optimization. Using such models would represent a big change
Future beholds for many CE OEMs, since they have traditionally relied on forecasts
As a sector, construction is considered a major driver of both that are based on experience and tribal knowledge.
noise and emissions pollution. While CE machines are one of Creating modern infrastructure and replacing older inefficient
the lowest sources of pollution in this industry, their high visibility at systems will be driven with a much higher regard to climate change
construction sites, as well as their critical role, has created a lot of in the future. Increasing urbanization will also drive market growth
interest in finding alternate energy sources for them, especially in – by 2050 close to 70% of the world’s population are expected
urban environments. Today, only a small fraction of CE fleets is fully to live in urbanized areas, up from a little over half (55%) today.
electrified, but this figure should increase as OEMs and operators Going ahead, the industry will be shaped by a combination of
invest heavily in electrification. Several tailwinds will aid the adoption infrastructure investment that supports climate change; Digitization;
of electric equipment, such as the lower total cost of ownership as and Regulations on emissions, noise, and transport. Construction
battery prices drop, the improved performance of newer battery equipment manufacturers need to fasten their seatbelts if they
technologies, enhancements in charging infrastructure, and stricter want to turn the tides in their favor by deploying automation and
emission-control regulations. developing eco-friendly products.

46 CONSTRUCTION OPPORTUNITIES|FEBRUARY 2022