At the same time, multimillion-dollar jury verdicts tied to vehicle crashes have reshaped how roadway incidents affect budgets, insurance programs and reputations. A single serious accident can trigger medical costs, equipment damage, litigation and long-term insurance market consequences.

The financial implications are significant. However, construction businesses that develop an effective fleet safety program can help reduce preventable crashes, stabilize insurance costs, protect workforce availability and strengthen a company’s legal position if an accident occurs. Distracted Driving Awareness Month each April highlights the importance of roadway safety. It also provides a timely opportunity for contractors to review how driver and vehicle safety fit into their broader risk management strategy.

Prevention First: The Foundation Is a Written Fleet Safety Policy

Increasing insurance limits does not reduce risk. Prevention begins with a written fleet safety policy tailored to the company’s operations that is consistently enforced.

A comprehensive fleet safety policy should address:

• Authorized drivers and clear documentation of who may operate company vehicles
• Motor vehicle record review at hire and periodically thereafter
• Cellphone and device usage, including prohibitions on handheld use
• Scope of vehicle use, including restrictions on off-hours or personal use
• Accident reporting and internal notification procedures
• Training requirements and disciplinary action for violations

Clear definition of authorized drivers is particularly important in construction environments. A foreman may ask someone to reposition a truck on a jobsite without realizing that individual is not licensed or approved to drive a commercial vehicle. Without documentation and controls, that seemingly small decision can create significant liability exposure.

Personal use policies require similar clarity. Allowing weekend use of your fleet without guardrails can expand exposure beyond what leadership intended. Even if returning vehicles to company premises nightly is not practical, defined parameters and written acknowledgment from drivers are critical.

Signed documentation and consistent record-keeping demonstrate that the company not only has a policy, but also trains its employees and enforces it. In the event of litigation, those records can become central to a defensible position.

Hiring and Onboarding: Safe Drivers, Not Just Skilled Tradespeople

Contractors rightly prioritize hiring experienced professionals. However, putting a highly skilled worker with poor driving habits behind the wheel can undermine broader safety goals.

Reviewing MVRs before hire and at regular intervals helps identify high-risk drivers early. Onboarding should include driver-specific safety training and reinforce that operating a company vehicle is a privilege tied to performance and accountability.

Mandatory training is required for drivers with repeated violations or preventable incidents. Ridealongs, observation and coaching based on real-world scenarios often deliver better results than a one-size-fits-all classroom session. If improvement does not occur, drivers may be subject to further consequences, including termination.

Distracted Driving and the Role of Telematics

Distracted driving remains one of the most persistent roadway risks, particularly for crews operating under schedule pressure or navigating unfamiliar routes. Safety professionals often categorize distraction into three types: visual (eyes off the road), manual (hands off the wheel) and cognitive (mind off driving). Addressing those risks requires both clear policy and consistent oversight.

For many contractors, telematics systems are initially implemented to track vehicle location, manage asset utilization, optimize routing and improve fuel efficiency. GPS visibility helps reduce unauthorized vehicle use, streamline dispatch and support preventive maintenance scheduling. In an industry where time and equipment availability directly affect project margins, those operational gains are often the primary driver for adoption.

In addition to these operational benefits, telematics can play a critical role in managing driver behavior. Systems that monitor speeding, hard braking, rapid acceleration and seat belt usage provide objective data that safety leaders can use for coaching and corrective action. When paired with clear expectations and training, that data helps identify patterns before they lead to a collision.

Successful programs are built on transparency. Contractors should clearly communicate what data is collected, how it will be used and what thresholds trigger intervention. Used appropriately, telematics supports both operational performance and driver safety, two outcomes that ultimately reinforce one another.

Vehicle Maintenance: A Critical but Overlooked Control

Mechanical failure can compound driver error or create independent liability.

Routine preventive maintenance schedules, documented inspections and pre-trip checklists help reduce breakdowns and crashes. Drivers should be trained to conduct basic walk-around inspections before leaving for a jobsite, checking items such as:

• Tire condition and pressure
• Lights and signals
• Brakes and fluid levels
• Securement of cargo and equipment

Cargo introduces additional exposure. Tools, materials and leased equipment must be properly secured not only during transit, but also in the aftermath of an accident. If a vehicle is towed, unsecured loads can cause secondary damage and increase costs.

Crash Management: Training for the Worst Day

Even the strongest prevention program cannot eliminate every incident. Structured crash management is essential.

An accident safety kit placed in every vehicle can provide step-by-step guidance during a high-stress situation. Typically, the kit includes a laminated card outlining:

• Immediate safety steps, including checking for injuries and calling police
• Guidance on moving the vehicle to a safe location if drivable
• Instructions on collecting insurance information and witness contacts
• Reminders on what not to say, including avoiding admission of fault
• Internal reporting contacts and timelines

Drivers are often shaken and concerned about their job or license status in the aftermath of an accident. Clear instructions help them stay focused. Calling law enforcement promptly ensures an official report is generated. When safe, drivers should collect photographs of all vehicles involved and relevant roadway conditions.

Many vehicles now contain electronic data that may help document the circumstances of a crash. Prompt notification to internal leadership and the insurance carrier allows preservation of that data and early claim management.

Training is critical. Distributing a kit without instructions limits its effectiveness. Annual safety meetings should include practical discussion of crash response procedures, with scenario-based exercises that reinforce expectations.

Aligning Fleet Safety With Culture

Driver and vehicle safety programs are most effective when integrated into a broader safety culture.

Leadership behavior sets the tone. Supervisors should model focused driving by avoiding calls or texts to drivers while they are on the road. Positive reinforcement often produces better results than discipline alone.

Empowering employees to speak up when unsafe driving behavior is observed reinforces shared responsibility. From the interview process forward, communicate that safety expectations apply on and off the jobsite to build consistency.

For construction businesses operating across multiple states, coordination with insurance carriers can support policy development, telematics strategies, post-accident planning and appropriate coverage selection. However, the priority remains reducing the likelihood and severity of crashes in the first place.

Contractor leadership cannot afford to treat roadway exposure as an operational risk. A structured, enforced, and culturally aligned driver and vehicle safety program protects not only drivers and the public, but most importantly, the long-term viability of your business.

SEE ALSO: FLEET MANAGEMENT TECHNOLOGY SUPPORT DRIVER SAFETY WHILE BUILDING CUSTOMER TRUST

The post Fleet Safety as a Business Strategy for Construction Companies first appeared on Construction Executive.

The answer may be to pull back on purchasing assets and equipment and instead balance a hybrid model that relies on both rental and ownership. The solution entails using data to determine when it’s time to own and when doing so is a costly mistake.

The Benefits of a Hybrid Model

Numerous benefits exist for construction leaders turning to this type of hybrid model. The goal is simple. Balance core owned assets with short-term rentals. In doing so, an organization can:

• Reduce capital expenditure, keeping more money available for bigger investments and meeting the higher cost of labor
• Optimize fleet utilization; keep equipment in frequent use, rather than sitting and waiting
• Ensure the feasibility of big projects or more specialized work without having to plan for outright investment in new, limited-use equipment

The most challenging aspect of this process is knowing when to rent and when to buy. The cost of short-term rental can be prohibitive if using equipment for the long term or consistently extending a short-term contract.

How to Use Data to Make Better Decisions

Heavy equipment ownership should be based on data-backed decisions, not guesses about what purchase will yield the best ROI. The solution is to capture data that provides highly accurate insight into the use and effectiveness of any equipment. One solution is the use of telematics. These software programs provide exceptional insight into how to use equipment by gathering information such as:

• Real-time location
• Engine hours used
• Maintenance requirements
• Fuel and maintenance costs

Tracking Utilization

Telematics can provide a range of benefits to an organization. For example, utilizing software that offers GPS tracking and IoT sensors allows business leadership to consistently monitor utilization rates for each individual piece of equipment. This allows the measurement of how many hours each piece of equipment is actually being used. It allows tracking of idle time and pinpointing both overuse and underuse of assets.

If equipment is underused, it may not be worth the outright purchase depending on how frequently it’s needed. Overuse is a concern as well. Necessary equipment that goes down, even for a short amount of time, can be costly with added delays.

Improving Allocation

Utilizing telematics software, it’s possible to know the exact location of equipment. This also incorporates data about the usage status of the equipment, even paring the days and times a piece will need to be accessible for each project.

Managers can then more effectively and affordably move machines where they are not only needed but also where they’re needed most. This enhances outcomes and ensures employees have the right equipment for the job.

Optimizing Maintenance

Some construction companies are plagued with the ongoing need to keep equipment operating to push deadlines and meet project goals. Yet, skipping or missing maintenance can jeopardize the functionality, safety and even the future accessibility of that equipment. For some companies, downtime for maintenance and repair forces the consideration of purchasing new equipment. Still, that can be an expensive and avoidable mistake.

With telematics, it’s possible for companies not to plan maintenance by timing, but to make repairs when needed, stay ahead of breakdowns and enhance long-term outcomes. That includes monitoring factors such as:

• Changes in hydraulic pressure
• Fuel-burn rates
• Engine diagnostic data

Utilizing Data to Decide When to Buy or Rent

In some situations, companies will need to consider the feasibility of purchasing additional pieces of equipment or renting. For example, turning to local scaffolding rental companies for projects tends to be less expensive than trying to manage and move equipment from one area to the next. It’s local, convenient and readily available without worrying about not having it available when a project needs to change.

Other types of larger equipment can be tempting to purchase in order to have on hand anytime; however, before making such a decision, companies can use telematics and other data to determine:

• If there is an ongoing need for the equipment, which will make it a long-term, financially sound decision
• Whether equipment is necessary for a highly specialized project, and whether purchasing it outright could create capital that’s frozen in that equipment without really producing value
• If investing in total ownership is the best route for long-term growth

Using data to make such decisions minimizes locking capital up for too long in the wrong equipment, allowing businesses to maneuver more readily around ever-changing project designs and demands. Prioritize equipment access over total ownership. What is going to help improve cash flow and profitability?

Investing in modern equipment can be wise, but doing so with careful attention to an organization’s current and likely future use needs is more important than outright purchasing. With so much flexibility in ownership methods, including the wide availability of rentals, it makes sense for companies to make data-based decisions that ultimately keep cash flow moving. With access to software and IoT sensors so readily available, making critical decisions is far easier than ever.

SEE ALSO: THREE WAYS FLEET TELEMATICS ARE OPTIMIZING CONSTRUCTION IN THE NEW NORMAL

The post How Contractors Can Maximize Equipment Value Without Over-Owning Assets first appeared on Construction Executive.

The mobile nature of fleet makes change management that much harder—and not just because managers have to pin everyone down at some point to explain what is changing, why and how it will affect employees’ day-to-day responsibilities. Change management challenges can be broken into two main categories: employee buy-in and stakeholder concerns.

Here are a few of the top pain points to consider within these categories and how to overcome them to build a strategic change management plan:

Minimizing Pushback to Change

For the most part, resistance to change is natural—and quite common—especially if the change is disruptive, challenging to adapt to or seems unnecessary. Accounting for the human element in change management can make or break the successful implementation of the change in question, which means managers need to move their team from resistance to acceptance in the change curve as quickly as possible.

Poor Communication

While managers may see a need for change to improve an aspect of—or even the whole—operation based on high-level data insights, drivers and technicians could very well fall into the “if it ain’t broke, don’t fix it” mindset. This means it’s important to clearly explain why the change or changes are happening and what the benefits are. Otherwise, managers may run into misunderstandings and pushback. Plus, ineffective communication to the team could cause feelings of being blindsided or being out of the loop, which can lead to disengagement and a lack of buy-in and adoption.

“Change management is a big challenge because there can be some older or less tech-savvy [technicians or operators] who just aren’t interested in learning a new system, or maybe they still have a flip phone, so they’re not used to using a smartphone or even a tablet,” explains Elisa Moore, Customer Success Specialist, Onboarding, at Fleetio. “Or maybe the things that the fleet manager wants to get out of the software, the people on the ground, it doesn’t change anything for them, so they’re not as invested.”

To mitigate this issue, clearly communicate the reason for the change, including:

• How it will affect employees’ daily activities
• What employees can anticipate during the rollout of the change
• What benefits are expected

Be sure to engage in feedback with employees during and after the rollout of the change to identify and address specific concerns.

Resistance to Change

Operators and technicians may be resistant to new processes or technologies due to things like fear of job displacement, increased workloads, lack of familiarity with new systems or software or simply not wanting to break from routine. Introducing change can trigger uneasiness or a perceived loss of control.

Once the fleet determines that a change needs to be made, get the team involved early. Ask questions and seek feedback on how they think the change might affect them or their job to better identify the best way to roll out the change for minimal pushback and workflow disruptions.

Operational Disruptions

Any major change can cause both expected and unexpected disruptions and, if you don’t have a solid plan in place, the transition period can cause increased downtime and/or general productivity loss. This can prove frustrating for employees who just want to get their job done, and frustrated employees can quickly become disengaged and at risk of quitting.

To adapt to this challenge, implement changes gradually and strategically for reduced disruptions. Improving communication in the fleet can help with this, as it allows employees to raise issues, which managers can quickly address to keep the change implementation on track. Having open dialogue with the team during a change rollout also has the added benefit of increasing employee buy-in and helping ensure the change is making a positive impact.

Addressing High-Level Challenges

Dealing with the human element in change management isn’t the only hurdle to overcome. There are some high-level concerns that should be addressed, whether that’s cost, leadership buy-in or preparing the team to work with more advanced technologies.

Cost Concerns

Change can often come with a hefty price tag, especially when talking about implementing new technology, like a fleet maintenance or optimization platform, or electrified assets. Fleets have to balance investments with their budgets, which can lead to a phased or delayed rollout that compounds the complications of change management.

ROI is a key metric to present when it comes to advocating for a costly—but needed—change, so be ready to answer the following questions with cold, hard data to make a strong case:

• How soon can we recoup our investment?
• When can we expect to see returns/savings after implementation?
• What is the projected return/savings on a quarterly or yearly basis once the change is in place?

Leadership Buy-In

Leadership buy-in can be just as hard to gain as employee buy-in. Fleet managers may struggle to get support for necessary technology or process upgrades. Unaligned priorities—between a sustainability-driven C-suite and a cost-focused fleet manager, for instance—can derail change initiatives. Not only do managers need to ensure leadership is fully committed to the transition, they also have to set expectations for things like fleet-wide change adoption and ROI.

Effective communication across leadership groups is often a hurdle, so on top of the numbers, it’s important to present a strong case for why the change is needed and even how it can tie into other initiatives through money saved, time saved or profitability enhancements.

Technology Competency Gaps

Making the move toward using advanced technologies, like electrified vehicles and equipment, digital fleet solutions or other automated business systems requires upskilling staff to some degree. Operators and technicians may need training on EV operation, inspections and/or maintenance—and legacy systems, like outdated scheduling and billing software, for instance, may not play nice with more modern fleet management tools.

Provide ongoing training and support. Take advantage of onboarding packages, continued customer success offerings and advanced technology certifications and/or training for operators and technicians. Set milestones when and where applicable, and follow up with the team to see what additional support they might need.

Assess Results and Adapt

When making an operational change, there’s the aftermath of implementing that change to consider. Measure how the change has affected daily operations to better understand what’s going right, what’s going wrong and how to make improvements going forward. Establish key performance indicators applicable to the change, such as lower fuel costs, uptime improvements or PM compliance improvements. Without doing this, it can be rather hard to know if the change or changes are working.

And, sure, quantifying the benefits of change may take a little time, but in the long run it can justify the change to stakeholders while highlighting operational benefits.

SEE ALSO: FLEET TELEMATICS: THE UNSUNG HERO OF CONSTRUCTION

The post How Construction Fleets Can Overcome Change Management Challenges first appeared on Construction Executive.

THE PATH TO ELECTRIFICATION

Electrification holds the largest CO2 mitigation potential for construction machinery while simultaneously delivering significant environmental, health and economic benefits. But while a combination of regulations and incentives such as those in the Inflation Reduction Act have led to an increasing numbers of U.S. consumers and businesses embracing electric-vehicle technology in passenger cars, buses and trucks, there has not been the same progress with heavy-duty construction machinery.

Admittedly, there are challenges to electrifying construction vehicles. Compared to passenger cars, large machines such as excavators need to work much harder and for much longer between charges, which means they need extremely large batteries to match the productivity of their diesel equivalents. These batteries are still very expensive, making the current purchase price of an electric machine much higher than its diesel equivalent.

More investment is also needed in providing infrastructure for the electrification of construction sites. Not all worksites have enough charging energy to support a fleet of electrically powered excavators. Sufficient power and stability in the electrical grid is a challenge to electrification in all sectors.

However, technologies to decrease energy consumption and carbon emissions from construction vehicles are available. Today’s excavator systems are only 30% efficient, meaning that 70% of the energy the engine produces is wasted instead of helping the excavator bucket move earth. Whether the vehicle has an electric motor or combustion engine, the energy consumption of the vehicle can be reduced significantly by cutting down on idling and hydraulic system losses and by introducing energy recovery systems. Digital-displacement hydraulics is one technology already available that can make a significant impact on energy efficiency.

DIGITAL DISPLACEMENT

Digital displacement technology, such as Danfoss’ Dextreme system, reduces hydraulic-system losses, leading to increased productivity and lower fuel consumption. Replacing a conventional hydraulic pump with a digital-displacement pump can reduce fuel usage by an average of 15%—and with further system optimization, even up to 30% or more. The radial piston pump uses digitally controlled valves to adjust displacement. Each piston is activated individually and provides a fast and accurate response to system demands, resulting in superior machine control.

By only using the pistons that are needed to meet the load, the pump provides exceptionally high efficiency. To reduce energy losses at the system level, the pump also contains multiple independent fluid outlets, dynamically allocated to each actuator so that fluid is supplied at the pressure needed by each actuator with minimal throttling.

The technology adds a completely new toolbox to hydraulic systems. It can simplify the hydraulic circuit and, by removing system components, allow for engine downsizing due to its responsiveness. The system is controlled by software, allowing original equipment manufacturers to build customization for each machine directly into the software.

Digital displacement can also reduce the required battery size for electric machines, helping to accelerate the path toward electrification for large excavators and other off-highway machines.

The construction industry has the potential to be a large contributor to greener and more sustainable urban areas. As cities are now prioritizing decarbonization, construction OEMs and contractors will need to adopt energy-efficient solutions that lower carbon emissions while reducing energy consumption and operating costs. The technologies are available, and with improved infrastructure and continued technological innovation, the construction industry can help our cities meet their decarbonization goals.

The post Combating Construction Carbon: How Heavy Machinery Can Further Sustainability first appeared on Construction Executive.

Tire prices in general have been rising since at least 2021, according to the federal reserve bank of St. Louis’ producer price index by industry, adding additional strain to fleet budgets. These increases continued throughout 2023 and are projected to keep going into this year. On top of that, tire shortages have been reported every year since the pandemic started, which can further affect prices as well as cause service delays.

Effective tire management gives construction businesses a measure of control, both in proactively addressing potential tire issues and being able to respond quickly when a potential issue becomes more of an immediate problem.

BEING PROACTIVE

For construction fleets, proactive tire management is paramount to reducing service costs, but to really get the most out of an asset’s tires requires analyzing related data, such as tread depth, air pressure, mileage and age, which can be a cumbersome task when done manually.

Still, monitoring these key tire health metrics is a worthy endeavor, as it can help fleets identify potential issues before they escalate. Staying ahead of tire wear and tear can also improve safety on the road and at the jobsite, and mitigate the risk of blowouts.

Naturally, blowouts aren’t completely unavoidable. An action that should fall squarely under the umbrella of tire management is response planning. This helps ensure no additional damage to the asset is done, but it also allows operators to get back up and running faster to avoid major job delays. Standardization is a great way to speed up tire replacement and repairs.

“We like to use the same types of equipment […] If we buy a Volvo loader for the farm, we like to buy a Volvo loader for construction and for maintenance so that we’ve got those parts on the shelf,” says Herman VanDenBogaert, fleet and raw materials purchasing manager at Cherrylake, a landscaping and construction company based out of central Florida. “That cuts down on time to repair. If an operator says they need a tire, we already have one mounted to a wheel here in the shop—we just take the whole thing out there, jack it up, switch it out and bring the other one back.”

SOFTWARE

Fleet-management software offers construction fleets a more automated solution to tire management. With FMS, fleets can maintain detailed service histories for their tires, including installation and rotation dates, as well as mileage at time of service. Not only can fleets use this information to monitor tire health, they can use it to track performance and durability trends so they know what holds up best to the daily grind. The data also provides cost saving opportunities by shedding light on poor performing tire brands or types. Armed with this insight, construction fleets can make informed decisions when purchasing tires, selecting options that offer the best return on investment over their lifecycle.

Access to robust fleet data facilitates proactive—and effective—maintenance scheduling and issue prioritization to reduce tire-related downtime. While managers can’t be everywhere construction assets are all the time, FMS empowers operators to update tire information and submit issues using the software’s native mobile application. Managers can view the submission in real time to assess whether the issue is critical or something that can be safely put off until the end of the shift.

Fleets can dive even deeper into tire-maintenance and management records to see how and when tires are serviced, down to the exact axle and position they’re installed on. This makes it easier to see unnatural wear trends that could indicate a larger issue and can highlight inefficiencies in tire balancing and rotation and alignment schedules.

Tire management in FMS can also help improve tire inventories to ensure fleets servicing assets in house have the parts available when they need them. Technicians can add tires directly from the inventory to digital work orders, which automatically adjusts inventory quantities. An auto-reorder threshold can even be set so that tires are reordered when stock quantities reach a specified number.

Opting to use FMS for tire management affords construction fleets additional benefits, as well. FMS provides integration and public application programming interface features that automatically consolidate data from connected solutions, including telematics and other fleet and business solutions. Because FMS automatically aggregates data on the back end, managers and other stakeholders can quickly view snapshots, as well as detailed reports, of key metrics, including inspection compliance rates, tire issue alerts and more.

FMS provides a consolidated dashboard that can be customized to show the metrics most important to the daily workflow, such as asset status, work-order status, open purchase orders and critical issues. Fleets can also take advantage of user permissions in FMS to ensure clean data while reducing data overload.

Although it can be a bit of a burden when done manually—or using siloed data—tire management doesn’t have to be so tiresome. Implementing proactive tire-management practices and leveraging FMS to automate data capture, consolidation and aggregation can help fleets minimize downtime, reduce maintenance costs and improve tire ROI.

The post Proactive Tire Management to Avoid Blowouts first appeared on Construction Executive.

Fuel Management Made Easy

Fuel-management systems take the guesswork out of manually tracking data via automated data collection. When using a fuel-management system, managers are automatically notified of issues and exceptions, including over-fueling, fueling at unapproved vendors and fueling outside geofencing parameters, allowing fleets to improve fuel-issue monitoring in real time. Additionally, fleets can use fuel-management systems to identify routing inefficiencies for reduced fuel use.

Another benefit of using fuel-management systems is tracking true versus operational idle time. Tracking true idle time can help decrease it, thus decreasing unnecessary fuel use, while tracking operational idle time provides insights into active time spent on jobsites, as well as fuel expenses for job types, for improved cost management.

Maximize the Benefits of Fuel-Management Systems

Improving fuel economy and surfacing mechanical issues, preventing fuel theft and monitoring driving habits are all benefits provided by fuel-management systems. To reap the maximum benefits, it’s important to understand how specific metrics affect the fleet.

In order to improve fuel economy and surface fuel-impacting mechanical issues, it’s necessary to establish an asset’s baseline for comparison. Data collected by fuel-management systems allow managers to quickly track odometer readings and the number of gallons purchased to monitor an asset’s fuel consumption over time and, when compared to the asset’s baseline fuel economy, determine how closely it’s performing to expectations. If the vehicle’s fuel economy drops below baseline, managers can use historical fuel-related data (including service histories) captured by fuel-management systems to determine the cause and take action to improve the asset’s fuel economy.

Sourcing and monitoring fuel theft and misuse in real time can save fleets thousands of dollars per year. Fuel-management systems use fuel capacity and location alerts to monitor when the volume of fuel purchased is greater than the listed fuel capacity of an asset. When integrated with GPS or telematics solutions, fuel-management systems alert managers when a vehicle’s GPS location is different than where it was fueled, helping to catch problematic activity in real time. Plus, due to the scale at which fuel-management systems are able to collect and disseminate data, fleets can more easily pinpoint causes of increased fuel consumption, such as driver behavior. Behaviors such as speeding and harsh acceleration play a major role in reducing fuel economy. Tracking driver behavior in fuel-management systems provides managers with real-time alerts around dangerous driving for quick resolution.

Integrating fuel-management solutions such as fuel cards and/or telematics with fleet-management software (FMS) provides more accurate, timely data accumulation and deeper insights into the fleet’s fuel usage, allowing for better monitoring of fuel spend as it relates to daily operations, including fuel used while on jobsites to determine true cost of projects, fuel spend by operator to determine asset or fuel card misuse and fuel spend by asset to determine potential mechanical issues and replacement cycles.

Consolidate Fuel and Fleet Data for In-Depth Insights

Fuel-management systems provide a more automated way of collecting data and increase data accuracy for more actionable, in-depth insights. When using a fuel-management system in FMS, fleets can import historic fuel data and easily track fuel economy. Data collected in FMS is categorized and sorted automatically for easy report generation that can be filtered by specific criteria, including by asset, date, driver assignment and fuel type.

Automated fuel-data collection reduces instances of errors associated with manual documentation, improving data reliability and it significantly cuts down the time it takes to manually retrieve, sort and analyze fuel data. Having to manually reconcile fuel receipts can be time-intensive, especially if drivers are late getting receipts in or if they lose one. Fuel management in FMS not only captures that data automatically, but it also allows drivers to take pictures of and submit receipts via a mobile app should the business need that documentation separately.

Fuel Management in Fleet-Management Software

FMS automatically tracks data related to every aspect of fleet, including maintenance and repairs, inspections, mechanical issues, usage, productivity, downtime and fuel activity, plus expenses related to each. By collecting, consolidating and aggregating this data automatically in real time, FMS is able to provide insights for quick analysis so managers can home in on fuel issues on a more granular level. Fleets can use FMS to surface and source increases in fuel costs by comparing fuel reports to service histories, inspection histories, preventive maintenance compliance rates and exception reports to find the true total cost of fuel use per asset.

Additionally, construction fleets can use fuel management in FMS to gain a more accurate analysis of fuel expenses in relation to job types, assets and within the fleet as a whole to help improve fuel management and increase the business’s bottom line. While FMS helps fleets monitor and control fuel expenses, it also uses complete fleet data to calculate total cost of ownership for fleet assets so managers and stakeholders can better determine acquisition and replacement cycles and gain a clearer understanding of overall fleet health and productivity.

The post Gain Better Control of Fuel Spend With a Fuel-Management System first appeared on Construction Executive.

Why Adding Asset Management to Day-To-Day Operations is Crucial

Tools may be forgotten on a jobsite and larger machinery may need preventative maintenance or complete repairs. When a company’s assets need to be managed, who is aware of the correct next steps in getting those tools back in the right hands? What systems are in place to ensure that assets are tracked and visible for a company that focuses on completing the job at the highest standard at the most efficient pace?

The physical tools and tracking of these assets are vital to the construction industry. More often than not, construction companies spend more manual time dealing with asset management—physical and digital—than realized. This means the control of every last asset is not given the priority it should.

A vast majority of companies across the globe in all industries are dealing with old, outdated databases like a simple Excel sheet that is just insufficient for properly tracking assets. This is often attributed to a hesitancy to change and remain in the status quo—or just not understanding the importance and best practices in keeping track of what may seem like a minor detail when it is not just a little detail.

As we push further into the digital age, there is no excuse for not capitalizing on technology that manages every last asset a contractor has. Unfortunately, most businesses aren’t treating asset management as their own asset. Even the best-managed companies question inefficiencies and sunk costs in day-to-day operations due to inadequate asset management capabilities.

Flexibility Enables Working Smarter, Not Harder

Reliable and successful asset management programs are powerful and flexible cloud-based platforms designed to help the world work smarter. These programs give users a powerfully simple way to track the entire life cycle from acquisition to retirement out of the field in the warehouse. By integrating these technologies and software, users can configure the technologies to work the way a company needs.

By integrating flexible technology into everyday workflow, companies can shape it to fit specific asset management needs. Each company is unique, and so are its assets. Asset management software can track anything and is highly configurable to how you currently manage your equipment. It’s proven that better asset tracking leads to better business performance—keeping assets in excellent condition and knowing where they should be—and prevents losses and damage.

Benefiting from the Big Picture

Any company has the whole business landscape at its fingertips by integrating asset tracking software. Users will notice the following benefits.

• Staying on track: Schedule maintenance for equipment and accelerate replacement and repair workflows.
• Tracking tools: Detailed records and custom fields tell contractors what they need to know about tools and equipment.
• Asset kitting: Bundle equipment together to rapidly check it out to crews for each job.
• Tracking maintenance: Extend the life of equipment and keep it under warranty with scheduled maintenance notifications.
• Custom reports: Detailed asset history and job costing reports to stay on top of reorders and avoid duplicate purchases.
• Custom user roles: Provide an uncluttered view of what’s essential and limit access based on responsibilities.
• Manage assets from anywhere: Add mobile apps to the Android or iOS devices already in use every day.
• Workflows supported: Enhance workflows with custom actions for faster and easier asset updates and management.
• Consolidate asset history: Full audit trails provide enhanced accountability and forecasting for every asset.
• Enable role-based access: Get enhanced data security and simple onboarding for every job function in the organization.
• Show record-level attachments: Get faster asset identification, more access to vital asset data, and better employee self-service.

Integrating technologies and being able to see the whole picture, down to every tiny detail, will pay in saved time. In turn, giving enhanced accountability with real-time updates directly to teams in the field to know what they have, where it’s supposed to be, how it’s being used and whether it made it back.

The post Digital Asset Tracking Saves the Construction Industry Time and Resources first appeared on Construction Executive.

However, most organizations don’t understand their company’s travel spend at a granular level because the details are trapped in various systems, such as the consumer travel sites used for booking. Since reconciling that information is so difficult, companies may understand the total dollars spent on hotels during a calendar or fiscal year, but not the details, such as who traveled the most or which properties were booked most often.

Especially when inflation rises, businesses become concerned about the value received for dollars spent.

Following are some tips companies can use to optimize their hotel spend to make their travel budget go further.

Business travel is returning, so now is the time to get ahead of spend allocation

When gas prices rise, so does hotel and other travel-related pricing. In response, organizations may limit who can travel, where, for how long and for what purpose. Though a lot of business has been transacted online since the COVID-19 pandemic hit, in-person meetings are becoming more common again, and there’s an entire universe of businesses working in the field, such as construction companies, that need to book hotel nights for crew members so the job can be completed on time and on budget.

According to Deloitte, while the amount of business travel is increasing, it isn’t expected to return to 2019 levels throughout 2022. Travel managers and teams can use the extra time to explore their options for the best pricing.

A pure cost-cutting strategy is probably unwise

While it’s always prudent for companies to manage their costs effectively, some cost-cutting measures can backfire, such as requiring employees to stay at lower-cost hotels or motels. The problem with that approach is that people tend to prefer staying in a hotel that is on par with or better than their personal living environment. Moreover, downgrading employees from three-star hotels to two-star or one-star properties conveys a lack of concern for employees’ welfare. The same is true for lowering per diems.

A better approach is to use a centralized system that consolidates all the necessary data from various lodging providers and provides insights into travel spend so businesses can make informed decisions about how to optimize it.

Regional travel can replace national or international travel

Business travel fell sharply during 2020 and 2021 as commercial buildings sat unused and white-collar employees worked from home. In a remote work setting, employees can usually work from anywhere they choose, assuming their productivity and availability warrant it.

During the pandemic, many organizations have hired new employees who aren’t located anywhere near a corporate office, and, as a result, there may be clusters of employees living relatively near each other, such as in Phoenix, Scottsdale and Sedona, Arizona. Some companies have started hosting regional get togethers versus national or international ones to reduce travel costs.

In fact, companies can send employees from various regions to local job sites and conferences, which is enabling many organizations to have a wider national presence.

Business travel can be transformed into a perk

Many employees would happily combine a business trip with leisure to explore a destination or to visit friends and family. Some companies are happy to let their employees extend their stays so long as the employee reimburses the company for expenses that fall outside the business trip, such as staying an extra day at a hotel used for business travel or keeping a rental car a few extra days. According to the 2022 Global Business Travel Association’s business travel index (BTI), global business travel in 2022 will top $1 trillion, which is still shy of 2019 at $1.41 trillion. Full recovery isn’t expected until 2024.

“Bleisure” is a win-win HR strategy because the company can offer bleisure travel as a “perk” without incurring any out-of-pocket costs. Employees like the idea because they have the freedom to enjoy a location without paying for a flight.

Another business benefit is that when employees extend a stay, they tend to travel to or from the location on a personal time off or vacation day. However, if the trip is strictly business, employees tend to travel on business days.

Avoid popular travel sites that offer consumer-level discounts

Most Americans know how to book travel online using a popular site like Travelocity or Hotels.com. While those types of websites are easy to use, they don’t provide the kinds of volume discounts that large businesses can often negotiate themselves.

Small-to-medium businesses tend to lack the travel volume they need to negotiate the same deep discounts that larger companies enjoy, so they often turn to consumer travel sites for convenience. Irrespective of volume or company size, businesses often struggle to optimize their lodging expenses because the data they need to achieve that is siloed in the individual consumer travel platforms.

B2B lodging performance networks, like Hotel Engine, provide deeper discounts than consumer travel sites because their audience—businesses—book more travel than individual people do.

Moreover, that buying power is aggregated, so the discounts apply to all travelers using the network, not just the largest companies. Another benefit is centralized reporting of all business travel so businesses can better understand the trends, such as total number of bookings, total booking costs, most frequently used hotel chains and the most frequent travelers in the company—the kind of data companies need to optimize their travel spend.

Bottom line

The last two years have been a great departure from “business as usual” given health and travel concerns. However, business travel is returning out of necessity. Now is the perfect time to explore alternatives, particularly those which simplify and lower the cost of travel.

The post How Rising Gas Prices Impact Business Travel and What You Can Do About It first appeared on Construction Executive.

It now looks possible that plant machinery will shift toward electric power in the future. With more and more businesses looking to reduce their carbon footprint, battery power can be a huge leap in the right direction for construction firms.

Current equipment

Battery power is not a new thing when it comes to the construction industry, as some equipment, such as mobile elevating work platforms, have been in use indoors for some time now. However, the more heavy-duty equipment has tended to stick to diesel as the main source of power.

This doesn’t mean that the construction industry hasn’t been trying to make the move toward more sustainable forms of power. There are some hybrid machines available that work off a combination of traditional fuels and electricity, but these do have their limitations as they currently still need to be plugged in, leaving a hazardous wire trailing behind them.

Moves toward electricity

The construction industry is aware that it needs to do more to reduce its carbon emissions, and it is clear to see that the combustion engine will soon be seen as nothing more than a dinosaur. It therefore stands to reason those developments are now being made to drag the construction industry into the 21st century by starting to take advantage of the huge leap forward that has been made in the world of lithium-ion battery technology. This means there will soon be more and more battery-powered excavators to take the place of the traditional ones.

Of course, there have been huge leaps forward in the diesel engines that are currently in use. Advances in diesel engine technology have meant that many of the latest machines are now almost emissions-free to fit in with regulatory requirements, but almost is never quite enough.

These machines are also incredibly disruptive thanks to the amount of noise that they make, so making the change can’t come soon enough for some.

This move toward electricity may seem a long way off, but the reality is not that far into the future. Many construction businesses are now aiming to be more sustainable for the benefit it can have on the planet and the competitive edge that it can provide.

A vision of the future

More plant machinery manufactures are starting to show that they are leaning in this direction, with many showing off their latest developments. One of the problems up until now has been battery-powered plant machinery has not been powerful enough and therefore does not compare to its diesel equivalent.

However, manufacturers are now boasting that they have finally matched the power of a diesel engine which could be used in rammers, wheeled loaders, vibratory plates and tracked loaders, not to mention excavators.

Companies such as Takeuchi, Wacker Neuson, Caterpillar and Hyundai are now all working hard to produce this electric powered machinery as part of their commitments toward a more sustainable future.

These pieces of equipment will not only benefit the planet and the green credentials of a business, but also the ways in which they work. By being quieter than a diesel engine, they can work comfortably in urban workplaces and near to residential areas.

One of the biggest concerns that many construction firms have had regarding battery-powered equipment is the issue of charging and battery life. It is no longer as simple as pouring in a new tank of fuel and carrying on, but many manufacturers are now claiming that charging can be done in a matter of a few hours and that machines could continue medium-duty work for more than six hours with just a one hour top up during the lunch break.

While many of these things are still at the prototype stage, some companies, including Bauma, Bobcat and JCB, are now going into serial production, meaning these pieces of equipment could become a reality on construction sites very soon.

These are likely to be shipped to other parts of Europe first, but it looks as though quieter and more environmentally friendly construction is not far away.

Other forms of power

While batter power seems the most realistic alternative to diesel engines in the short-term, there are other forms of power that show signs of being used. We are used to seeing solar panels popping up in all sorts of places, and solar generators could become a powerful solution to many problems.

With construction sites often lacking somewhere to plug in and charge electric machinery, the power of the sun can be harvested to do this no matter where the company is working. A site can be completely off-grid and still be able to power equipment.

However, in some parts of the country, sunshine cannot always be relied on, which is why hydrogen cells are also being explored as an option. This technology has been around for some time but has never really been put to full use. It is something that could power a static plant, while mobile machinery still seems a little out of reach at the moment.

Many big manufacturers are aware of the need to commit to zero-emission technology, and electric-powered plant machinery seems less like a futuristic vision and more like something just on the horizon.

The post Transitioning From Traditional Fuel for Future Construction Machinery first appeared on Construction Executive.

General Liability

Several interconnected risks, such as supply chain delays, inexperienced workers and an increased use of subcontractors, are at the forefront of general liability claims in the construction industry. Supply chain delays can result in the use of alternative materials, notably when projects are urgent in the case of a disruptive event. For example, the freeze in the southern part of the United States in 2021 showcased this disruption. Due to the inability to get materials commonly used for repairs because of delays in the supply chain, companies had to use replacement materials to fix damaged building structures. This example brings up a lot of unknowns concerning how long replacement materials will hold up, the final cost and meeting project deadlines.

At the same time, the construction industry is still grappling with labor shortages—only to find that the COVID-19 pandemic exasperated the shortage. According to the Home Builder Institute, the construction industry needs more than two million more workers over the next three years to keep up with booming demand for new houses amid the labor shortage. Companies are now in the position to put less-experienced workers on projects, often adding additional delays and complications. Subcontractors and supervision needs are also heightened as workdays are longer to keep projects moving. Different rules and regulations of subcontractors and potential injuries as a result of hiring inexperienced workers can all add extra liability for the insured. To better manage these general liability risks, employee training and tracking, digital resources—such as drones, AI and sensors—as well as workflow management practices should be implemented.

Auto

Bluetooth connections, self parking and motion-detecting cameras are some of the greatest innovations for the automotive industry, but an over-reliance on technology could be adding new distractions for drivers and increasing the risks for construction workers. Operating automobiles has many uncontrollable variables such as weather and fellow drivers, speeding and using cell phones while driving are not new concerns. Now, with new technologies built into cars, drivers may feel safer, provoking them to take a bit more risk while driving. For example, the COVID-19 pandemic has intensified the idea of working on the go, and people are now using their cars as mobile offices, jeopardizing construction workers’ safety of getting from site to site and when physically working on roads. Cell phone blocking technology, geo-mapping to monitor vehicle usage, and limiting physical use of technology while driving can help manage risky driving behaviors.

Workers’ Compensation

The construction industry did not shut down during the COVID-19 pandemic, however, the pace and sequence of jobs changed. Like other industries, the construction industry continued to be challenged by longer working hours in addition to having to implement new workflow processes and change work sequence as result of the pandemic. This put additional physical stress on workers, as many jobs originally completed by two people may now need to be completed by one person to maintain social distancing. Supply chain delays also cause a sequencing and re-sequencing of projects, as projects are delayed while waiting on needed parts. Restarting activities after an interruption has been known to increase stress on workers’ mindsets. These new risks can add pressure to workers in an already physically and mentally demanding industry. To help minimize the impact of these risks, employers can use technology in prefabrication, training and advancements in construction tools.

The construction industry will continue to be a fast-paced and high-risk industry. General liability auto, and workers’ compensation claims will continue to challenge companies due to the complications caused by the COVID-19 pandemic. Managing risks and paying close attention to emerging trends can help business leaders prepare for potential exposures. While disruptions in the supply chain and labor shortages are not projected to ease up anytime soon, companies should begin to plan and prepare to navigate the anticipated challenges in 2022.

The post General Liability, Fleet Management and Workers Compensation: Major Construction Risks to Watch This Year first appeared on Construction Executive.