Fleet Management: The Link Between Technology and Profitability
The construction industry in the 2010s was in essentially the same place as the U.S. manufacturing industry was in the early 1990s: trapped between the declining margins of a competitive environment and a lack of efficient processes needed to grow. Manufacturing used the same basic methods and processes for planning, tracking, producing, shipping, and selling products that had been in place since the 1960s. Paper and human reporting were everywhere. Critical data arrived at decision makers' desks too late to be useful. Operational control was more black magic than science, and communications were glacially slow.Then, in the mid-90s, manufacturing companies began to make investments in computer-driven data and communications systems, and the industry’s “Information Revolution” began. Efficiency increased, as did productivity and profit margins. Capital and operational expenditures were leveraged by enormously scalable technology solutions, and variable costs fell dramatically. Fast forward to the present. With the right choice of technology and process change, construction companies can experience similar increases in efficiency, productivity, and profits. It all starts with effective fleet management.
The construction industry in the 2010s was in essentially the same place as the U.S. manufacturing industry was in the early 1990s: trapped between the declining margins of a competitive environment and a lack of efficient processes needed to grow.
Manufacturing used the same basic methods and processes for planning, tracking, producing, shipping, and selling products that had been in place since the 1960s. Paper and human reporting were everywhere. Critical data arrived at decision makers' desks too late to be useful. Operational control was more black magic than science, and communications were glacially slow.
Then, in the mid-90s, manufacturing companies began to make investments in computer-driven data and communications systems, and the industry’s “Information Revolution” began. Efficiency increased, as did productivity and profit margins. Capital and operational expenditures were leveraged by enormously scalable technology solutions, and variable costs fell dramatically.
Fast forward to the present. With the right choice of technology and process change, construction companies can experience similar increases in efficiency, productivity, and profits. It all starts with effective fleet management.
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