Facing Disruption in the Equipment Manufacturing Industry
In the heavy equipment manufacturing industry, disruption is the new norm, writes Todd Hinz in a recent article for BDO U.S. Rapidly developing technologies and constantly shifting policies mean that the change never ceases. So how can players in the construction industry keep up?
Hinz suggests a number of tactics for equipment manufacturing businesses seeking to remain successful in today’s volatile environment. He recommends that they concentrate on being forward thinking and seeking ways to make operations leaner. Successful companies are those that can operate agilely, both domestically and abroad.
As one of the biggest buyers for heavy equipment manufacturers, construction companies are key. They are seeking to adopt new technologies in order to make operations more efficient. There are a wide variety of new applications being developed every day. Hinz touches on the following:
- Drones that allow inspectors and surveyors to perform their jobs offsite and more efficiently.
- Automation retrofitting that enables traditional equipment to perform some tasks automatically.
- Robotic drills and self-driving trucks have valuable applications in the mining industry. Autonomous trucks, in particular, have been very successful. Not only can they work 23 hours per day, but to date there are zero injuries attributed to this equipment.
In order to incorporate new technologies into their operations, construction companies are adjusting their financing and business models. The lead time for new equipment has increased drastically, so more companies are seeking to purchase quality pre-owned equipment. Equipment rental, too, is growing in popularity. In order to meet the demand of the customers, machinery manufacturers need to consider these changing desires.
Overall, the outlook is positive for companies in the machinery manufacturing industry. That said, they should avoid getting too comfortable. Continually seeking to improve operations and offer what customers seek is the key to remain afloat in the midst of this new age of constant disruption.
To learn more, visit bdo.com.