HOW TECHNOLOGY IS TRANSFORMING ASSET UTILIZATION
of this approach are numerous .
To start , they will no longer waste time and effort conducting routine maintenance checks on equipment that ultimately doesn ’ t require any service . Technicians are only called to the field on an as-needed basis . Further , necessary repairs will be relatively minor , as the ongoing monitoring of fleet performance will catch maintenance issues as they ’ re brewing — not after they ’ ve exploded into costly breakdowns .
3 . Join the sharing economy Underutilization represents a large lost opportunity for contractors ; machines should make about 25 percent of their purchase price annually . That means if a contractor has a million dollars ’ worth of highquality equipment sitting around , that person is draining up to a quarter million dollars per year of income .
Armed with the usage data made possible by telematics , contractors can avoid this lost value by dipping their toes into the emerging contractor-to-contractor sharing economy . Participating doesn ’ t require contractors to rent out large amounts of equipment ; these platforms allow them to list individual pieces for other reputable contractors to choose from . The ability to realize a constant ROI from their equipment won ’ t just transform how and what they buy ; it will also enable them to own new warrantied equipment . For instance , if a contractor has always wanted a 60-foot boom lift but couldn ’ t afford the purchase because he ’ d only use it two months of the year , he can now finance that lift , use it for two months , and lend it for the rest of the year . That lift would cost him nothing in cash flow ; instead , he would gain equity in the asset and have cash left over .
When searching for a telematics solution that will melt the iceberg , at the end of the day , it needs to make a contractor ’ s job easier . If it comes with a complicated interface and a steep learning curve , it ’ s not the right choice . It should also provide the data to improve fleet efficiency .
Contractors simply cannot afford to not use telematics . By incorporating these strategies into their fleet management , they ’ ll unlock countless opportunities to gain efficiency and revenue for their companies .
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