Teletrac Navman Survey Finds 67% of Construction Firms to Increase Fleet Size
Wednesday, August 30, 2017
Posted by: AEMP
Telematics will stimulate a global construction market expected to grow by 85 percent, to $15.5 trillion worldwide by 2030.
Teletrac Navman, a global software-as-a-service provider that leverages location-based technology for GPS fleet tracking and fleet management solutions, has released findings from its first Telematics Benchmark Report: Global Construction Edition.
The Teletrac Navman survey provides a view of telematics trends affecting the global construction market and found managing costs (46 percent), growing revenue (30 percent) and business expansion (26 percent) were top business challenges, as the industry faces increased pressure to meet growing demand for its services.
In fact, the global construction market is expected to grow by 85 percent, to $15.5 trillion worldwide by 2030, according to a recent PwC report, Global Construction 2030.
Read more: https://www.pwc.com/gx/en/industries/engineering-construction/publications/pwc-global-construction-2030.html
Teletrac Navman's survey also revealed technology disruption, economic optimism and labor shortage, in addition to several other key trends.
Technology is beginning to disrupt construction, with a majority of companies looking for ways to improve efficiencies and reduce accidents.
- A variety of emerging technologies are top of mind, including fatigue monitoring (27 percent), machine vision technology (19 percent), drones (16 percent) and big data analytics (14 percent). Only 9 percent cited autonomous/self-driving vehicles, despite the hype.
- More than 80 percent of organizations are already using telematics or plan to do so in the next year, citing equipment tracking as the most common use (75 percent), followed by tracking speed (61 percent) and driver hours (53 percent).
- More than half of organizations using telematics have seen reduced fuel costs, some attaining up to a 40 percent reduction. Almost one-third have seen fewer accidents.
Optimism in the construction market remains high as the economic recovery continues to pick up speed on a global scale.
- More than 90 percent of companies plan to invest in their business in 2017 by upgrading fleets (45 percent), finding, retaining and developing talent (38 percent) and/or integrating new technologies and systems (34 percent).
- Financial considerations, including reducing costs (41 percent) and increasing profits (48 percent), are top goals for 2017.
- More than half of organizations will be increasing the number of equipment/fleet size over the next year as a result of more demand for services (64 percent), replacing older equipment/vehicles (55 percent) and domestic growth (34 percent).
A shortage of skilled labor is impeding growth while payroll remains a top expense for companies.
- Finding, retaining and developing talent was cited as a top business challenge for nearly a quarter of respondents, and more than half named increasing material and labor costs as a top concern.
- Although payroll (55 percent) is cited as the largest business expense area for organizations, followed by equipment/vehicle maintenance (33 percent), 54 percent plan to hire more drivers/equipment operators and purchase new equipment this year.
- To address the worker shortage, organizations are increasing pay (53 percent), developing educational/training programs (36 percent), offering better benefits (33 percent) and hiring freelance equipment operators (29 percent).
“The construction industry has long faced pressures to do more with less – more output with fewer resources – to meet customer demands, while also ensuring the safety of its workers and profitability of the business,” said Rachel Trindade, global vice president of marketing, Teletrac Navman.
“It’s no easy task to balance these competing interests, which is why so many fleets are turning to modern technologies, such as telematics, to find efficiencies. We’re committed to supporting the industry by helping them understand and navigate these market shifts.”
The full report can be found at: http://www.teletracnavman.com/benchmark/construction