The 3G Shutdown Is Coming – Is Your Fleet Prepared or in the Dark?
Depending on the situation, there are clear benefits of buying vs. hiring construction equipment. Fleet owners that buy equipment will most likely eventually sell their old equipment. Used equipment must be in good shape in order to sell, and it can be tricky for fleet owners to find the sweet spot between maximising equipment productivity while they own it and priming it to sell down the road. GPS fleet tracking systems are key in giving fleet managers the intelligence they need to make savvy business decisions.
Here are three best practices for equipment managers who eventually plan to sell their used equipment, but still want to get the most value from it while it’s still on their job.
1. Don’t over- or under-maintain equipment
The old adage says tools must be properly maintained if they’re to live out their full life, but many fleet owners actually end up over- or under-maintaining equipment and incurring unnecessary costs. Without adhering to a maintenance schedule or using GPS fleet tracking technology to alert when it’s time to service an asset, it’s easy for fleet owners to incur bills worth hundreds or thousands of dollars – either from over-preventative service or expensive, avoidable repairs. If equipment is under-maintained, it may see unexpected failures, and this can be catastrophic for equipment managers – production comes to a stop, they may need to pay overtime to mechanics for unplanned work and may need more expensive fixes down the line. All of this information will remain in the records and could scare potential buyers, as well. Who wants to purchase equipment that went through a catastrophic failure?
Fleet owners should take special care to keep track of any maintenance, so all team members are aware of the schedule, and to keep a record for potential buyers. GPS fleet management and fleet tracking systems can automate this process, eliminating the need for a paper trail and offering buyers proof of how the equipment was cared for.
2. Teach employees how to properly use equipment
New Zealand’s construction industry has consumed 608 million litres of diesel this year. Some of this fuel use comes from employee inefficiencies such as unnecessary idling, excessive throttling or harsh braking. Fleet owners should educate all fleet members on proper techniques for use. One way to do this is to use fleet tracking telematics to identify weak spots and host a refresher training course, one that’s personalised for each driver/operator depending on their individual behaviour.
Some fleet owners also use a rewards system to recognise correct equipment use. Performance-based bonuses and employee appreciation events have proven effective in motivating employees to do their best.
3. Know when equipment is under-utilised, as it may be time to sell
It is common for certain construction equipment to be under-utilised, or even forgotten about on the job site. If it’s not being used, it’s not adding value to the fleet. Fleet owners must monitor each piece of equipment for hours on the job so they can recognise when it’s time to sell, and many use GPS fleet tracking to do so. Not only does this ensure every piece of equipment is accounted for at all times, it also provides fleet owners with essential data on usage, so they can maximise value.
The extra income from selling a piece of under-utilised equipment can be put back into maintaining the machinery that is being used on a regular basis. Knowing when it’s time to sell a piece of equipment is just as important as priming it to sell – reselling used equipment at the proper time will increase its value to potential buyers.
Fleet owners who properly maintain their construction equipment, teach employees to use it correctly and know when it is under-utilised, yield higher profits when reselling. These factors also have the added benefit of helping a construction site run smoothly, especially when using fleet tracking to automate processes. Adhering to these best practices will help fleet owners who plan to resell their construction equipment in the future, and also those who are looking to add more value to their equipment so they can use it for years to come.
We work with many businesses in heavy construction. Get in touch to find out what we can do for you.