Leveraging Construction Equipment Services to Gain a Competitive Advantage
Published: 27/9
Rising costs and supply chain setbacks paired with an ongoing worker shortage have put new stressors on the construction industry. And, with recent declines to project backlog, contractors are forced to be more competitive to keep their business going.
The construction industry’s landscape is approaching a point where digitization is no longer a “nice-to-have” asset, but a necessity to increase profits and mitigate setbacks. In 2022, rising input prices for material and labor cost sub-contractors $97 billion in unplanned expenses, further driving the demand for updated business practices that can help streamline operations, maximize resource utilization, and ultimately, bolster business scalability.
As project managers and operations personnel navigate these challenges, innovative solutions are emerging to address the industry’s pressing needs. One such solution gaining traction is Equipment-as-a-Service (EaaS), a model that offers a paradigm shift from traditional equipment ownership towards a more flexible and cost-effective approach. Under this model, contractors no longer bear the full burden of purchasing, maintaining, and disposing of expensive machinery. Instead, they can access the construction equipment they need on-demand, paying for usage rather than ownership.
A path toward future-proofing
EaaS adds a new layer of predictability to project expenses by lowering costs related to tool repairs and replacements, and reducing the upfront investment for tool crib updates. Transitioning to an EaaS business model not only aligns with the industry’s evolving demands but also gives construction companies of all sizes increased flexibility so they can adapt to fluctuating project demands, helping to ensure that they can remain agile and competitive in a dynamic marketplace.
Instead of budgeting for massive upfront investments on new construction equipment or being slowed down by maintenance needs, users can pay a flat, monthly fee to access the tools they need, when they need them, without having to plan for repair costs or downtime. And, with digitization integrated throughout their organization, jobsite managers can harness tool data, usage analytics and real-time insights from anywhere. This newly accessible information not only lays the foundation for more strategic decision-making, but also helps jobsites increase output from the team they already have, without compromising employee safety or wellbeing. By reallocating resources from capital-intensive equipment purchases to strategic investments in construction technology and workforce development, companies can help reduce administrative workload, optimize workflows and better allocate resources while integrating innovative safety measures that serve their organization from the bottom up.
Using EaaS to get the best tools for the job
Tool Fleet Management, Hilti’s EaaS offering, allows customers to choose from a wide selection of tools, including the latest innovations—on a long-term or short-term agreement based on the needs of current projects. Its simplified scalability enables organizations to more quickly adjust operations in response to market fluctuations and project requirements, without the financial burden of owning underutilized assets.
By acquiring a Hilti DST 10-CA Wall Saw through the Tool Fleet Management program, for example, a contractor can reap the benefits of a 5-figure upfront investment for a significantly lower monthly fee. Equipping trade-workers with an upgraded tool crib also gives them access to safety features like Hilti’s Dust Removal System (DRS) and productivity gains through technology such as Hilti Cut Assist, which outfits wall saws like the DST 10-CA for fully automated cutting once the cutting surface is detected.
For coring applications, Hilti’s Bluetooth-enabled DD-WMS 100 Water Management System offers a virtually maintenance-free means to supply water and collect and filter slurr. It eliminates the need to pump pressurized water or filter slurry during coring by recycling water up to seven times, freeing up costly labor hours that were previously spent on set-up, water refilling and other tedious operational requirements.
And, with digitization now a key driver for growth and profitability, jobsites can utilize Hilti’s ON!Track tool tracking and equipment management platform for added efficiency and costs savings. Through the intuitive ON!Track app, project managers can get optimal transparency into their tool crib to see which tools are being used, where they are being used, and when. When paired with Tool Fleet Management, these services help reduce product consumption, eliminate wasteful buying and safeguard organizations from tool theft while absorbing the costs of equipment repair and replacement.
The benefits of digitization extend beyond the competitive advantages. By leveraging support services such as Hilti’s Tool Fleet Management and ON!Track, construction firms can optimize equipment utilization and overall operational efficiency to help decrease time spent on administrative requirements, simplify their tool crib management and scale based on the changing needs of their jobsites.
