Grading and Excavation Contractor | Forecasting the Future of Heavy Equipment

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According to the US Department of Labor, three out of five equipment operators work in the construction industry, many of them in heavy construction. Settings include mining, infrastructure, and commercial and residential construction. Translation: There’s a lot of big equipment out there.

By Lori Lovely

Heavy construction equipment consists of mixers, cranes, wheel loaders, dozers, graders, rollers, and attachments. Each year the heavy construction equipment industry meets an increasing global demand for turnout. Although the industry is sensitive to fluctuations in the economy, increases in population and business continue to drive the need for workers. Other contributing factors to the demand for heavy equipment include recession recovery in Asia and Russia, growth in Latin America and Africa, and the aging of US infrastructure, with the subsequent need for refurbishment. In fact, bridge construction is anticipated to be the fastest-growing segment of the industry because of the need to replace or repair aging bridges.

In fact, the Department of Labor predicts that construction job opportunities will be on the rise through 2014, despite improvements in equipment that are expected to increase productivity. Just what are these anticipated improvements, and how will they affect the industry?

There is no Doppler radar for predicting the future of heavy equipment, but market trends, research, and analysis provide some indication of the direction the market is taking—and there are some obvious regulatory developments influencing the changes in the works.

Relying on Research
Before a new product leaves the drawing board, it has to have plenty of research backing up its design inspiration so manufacturers can rely on a receptive market. Rick Hall, vice president of product development for Case Construction Equipment, tries to integrate the voice of the customer into the product. “Our product development is customer-driven. We begin every product program with definitions of customer problems we want to satisfy.” Case’s three-stage research and development (R&D) program begins with the creation of a matrix for all applications, broken down into geographical areas to help the company understand the demographics and identify differences between applications in order to prioritize requests.

Feedback is garnered through face-to-face interviews with end users of all brands of equipment. Hall says this qualitative research focuses on desired product attributes and success drivers, and that Case looks for trends, or what he calls “image diagrams.” From this snapshot, a questionnaire is created to delve further for “a more quantifiable set of data,” categorizing perennial issues into specific problems. Global input is sought. Case then prioritizes the ranking of customer requirements.

“Maintainability and operator interface—comfort, controllability, and the ease of reading instruments—are always in the top five,” Hall reveals. Machine control is a new trend that he suspects originated with the “Nintendo generation” accustomed to joysticks and creature comforts.

Tom Bucklar, North American regional manager for machine control and guidance at Caterpillar, calls it the “Xbox generation,” but he agrees with Hall’s assessment. Caterpillar has responded to the trend by investing heavily in integrating new AccuGrade technologies into its lineup of construction machines. The job site is changing rapidly from wooden stakes and grade checkers to operators working autonomously with onboard computer displays guiding their work and implements. For young operators who have grown up with Xbox, it feels comfortable to control the machine with joysticks taking feedback from the machine’s integrated display. Caterpillar has just released its new M-Series motor grader, which is the industry’s first joystick-controlled grader. Bucklar says it’s one of the hardest to operate and requires years to get good at, but he adds that younger operators are not intimidated by computers and adapt readily.

The Nintendo and Xbox analogies apply in ways beyond just the type of controls the equipment incorporates. Real-time feedback enabled by machine control puts productivity in a new, motivating light by tapping into human emotion in a competitive, almost playful way. “Guys get competitive; they want to beat their old score—and each other. It drives guys to be faster and more accurate.” It also reduces stress, he claims, because thanks to machine feedback, operators know when the job is done right. Motivation can also work as negative reinforcement. “There’s a Big Brother aspect to it that can motivate a guy to be productive.” As Bucklar explains, the AccuGrade machine control systems can take live wireless updates from the machine to check progress or if the machine is idle.

Ken Poppe, product marketing manager for new technology in the construction and forestry divisions of John Deere & Co., considers the Big Brother imagery negative, preferring to think of the new JDLink machine-monitoring system as a useful tool to assist in asset management. The information goes not only to management, but also to the operators. Poppe reiterates Bucklar’s charge about fomenting competition. “As soon as you have data, you know where you are and can set goals,” he says. “The guys—and gals—get competitive. It’s like knowing your golf score; you’re always trying to do better.”

The just-launched JDLink system collects diagnostic data—trouble codes—and transmits it to the service manager, who can then schedule the appropriate maintenance or repair. The key, Poppe says, is in knowing the location of the machinery. “It sounds funny, but it’s really important to know where the tractor is. You’d be surprised how often equipment is moved before the service truck shows up. Knowing where it is really saves costs. Our customers can better manage their sites with JDLink visibility.” Big Brother–esque or not, knowing the location of idle machinery enables a superintendent to send it to other sites where it can be utilized, thereby increasing productivity.

Productivity is in the spotlight because it has been one of the top five issues revealed by Caterpillar’s customer research over the past decade. Other key concerns include safety, environmental issues (diesel and noise emissions), versatility, and employee retention. “Employee retention and the labor shortage are usually in the top five,” says Bucklar. “Ergonomics—comfort—is a big part of that. Providing operators with the latest tools, like GPS machine control, is big.” Operators feel appreciated and valued when they’re trained on the latest tools, he explains. “They’re empowered. They gain confidence and pride. That contributes to employee retention and satisfaction.”

It can certainly build team spirit as well, in part because it improves communications. “It used to be only the superintendent knew what work was to be done,” Poppe begins. “Now the guys have the plans on their screens. They know what needs to be done, they can see the end result, and it’s clear what they have to do to get there. Now the superintendent is the administrator of the work.” He relates a story about one job site he recently visited. The 300-acre stakeless site was well-managed by a new superintendent with six months’ experience. “The operator was doing finish work with a crawler that had an integrated grade control system; all he had to do was steer. The operator had been operating the crawler for only about three weeks.”

Knowing how the customer works and what the customer needs serves as a jumping-off point in equipment development for all the manufacturers. Although ultimately Caterpillar seeks to meet the requirements of its end users, its R&D methods vary from the ones Case utilizes. Caterpillar looks at a lot of areas to assess the needs of its customers, but for tomorrow’s demands, it relies heavily on dealer advisory. “They are our number-one partner; they’re the closest to the customer,” Bucklar elaborates. When looking beyond tomorrow, Caterpillar implements customer-driven “ideation sessions” to generate ideas for five-plus years out. These focus groups of customers provide input on industry trends, their “pain points,” and their wants in future equipment.

John Deere combines the methods of its competitors, focusing on different levels of interaction with end users. For both short- and long-term success, it relies on direct market research in its more focused Customer Advocate Groups (CAGs) as well as its Dealer Advocate Group (DAG). While CAGs are brought in during several stages of development from evaluation of current conditions to concept and design to prototype—DAGs focus more on training and sales support, special programs, and marketing.

Asset Management: Maintaining and Diagnosing
What customers want is an efficient approach to asset management. Each machine is a production tool, and if it’s down, it’s not making money—especially in the mining industry, where 24-hour days are common. These days, manufacturers are applying technology to increase uptime, which in turn increases productivity.

Preventative and routine maintenance start with tracking hours and locations and diagnosing potential problems so maintenance can be scheduled with minimal impact on field operations. Caterpillar’s Product Link satisfies this need for most machines. For some of Caterpillar’s large machines and mining equipment, the answer is a “smart box” that takes the diagnostics off several onboard computers, such as the engine and transmission modules in order to predict system failure modes. “It can detect trends from the transmission and engine to determine overall service needs. It can detect if the timing on the clutch is beginning to wane, for example,” Bucklar explains. Even better, the service truck doesn’t have to be onsite to conduct diagnostics.

Case has a similar data tool to make diagnoses quickly. The wireless plug-in tool connects via cellular device or satellite to a shop computer, providing predictive diagnoses, or prognostics. Because the electronics have the ability to capture data, process it onboard, and communicate it to the shop, indicating the time and piece of equipment, productivity—uptime—is increased. “It’s big now,” Hall concedes.

The intention is to make things easier. “We lead the market in machine control,” Poppe announces. “Our machines are the easiest to operate.” John Deere’s focus is on efficient and safe daily service—the everyday stuff like tires, fluid levels, and greasing. To that end, Deere has added grease banks for fast fills to reduce downtime. The company has also introduced an environmentally friendly vacuum-fluid exchange mechanism that not only eliminates the need for a drain pan but also contributes to quicker oil changes.

But the bigger news is the addition of the 844 wheel loader. The large loader has a new grease-pin joint that never needs to be greased. Throughout its life, the exclusive Deere-designed bearing won’t require greasing, an advantage that reduces costs and downtime.

Mechanical improvements are beneficial, but electronics are the wave of the future. Already prevalent, advanced electronics are changing the relationship between operator and dealer, service provider, or fleet mechanic. “With a mechanical system,” Poppe explains, “you knew something was wrong if you saw a broken part or leaked fluid. It’s different with electronic controls, so we’re training service managers and operators to look for different signs, which are on the screen sometimes.”

The screen can alert an operator and a service manager to a problem. The information it sends is so detailed, the service manager knows exactly what parts and services are required. “For example, if an excavator’s heat exchanger is plugged and the machine is running hot,” Poppe offers, “the service manager knows he can send a truck to blow it out with an air compressor.” With time-saving diagnosis and maintenance, Poppe says customers can expect to significantly improve the life of the machine and save money. “It’s a critical factor. Customers these days have more competitive pressure. They have to do more with less.”

Each year, the heavy-equipment industry meets an increasing global demand for turnout.

The challenge, Hall explains, is that the product has become more sophisticated, but the service cannot be. “It must remain intuitive. Veteran mechanics must be able to understand the product and how to service it.” It’s why Case repair guides are written specifically to be understood by fleet mechanics, with guidelines for service procedures in language “old mechanics” use. “Our service manuals are available in 14 languages, but we always use simple language. It’s part of our design for maintainability.”

Interactive Interface
Electronics are also prevalent and beneficial when it comes to operator interface. The technical revolution is surging through all industries with wireless data accessible from virtually anywhere, and the heavy equipment industry is transitioning from a mechanical age to an electronic era.

“A machine used to be a stand-alone production unit in the field,” Bucklar paints the picture. “Operators would fill it with diesel fuel, look at the stakes, and go—similar to a typewriter that simply needed ink and paper. Now, it’s a connected work site, with positioning technology and instant wireless communication. Similar to the PC needing Wi-Fi, power, and software, our machines need GPS signals, wireless communications, and 3D design files. It does add a level of complexity, but the productivity gains more than offset any pain caused by the learning curve.”

In the past, contractors were always striving for the most productive machine at the lowest cost. Bucklar says Caterpillar doesn’t look only at the cost per cubic yard. “We look at the cost to get down to grade—the benefits to minimize the need for grade checkers and survey crews and get them out of harm’s way. We look at the process. It’s not just the machine that’s productive; it’s the process.”

Caterpillar’s latest addition to the AccuGrade lineup is the Site Reference System for Backhoe Loaders. It minimizes the need for a staking crew, saving the contractor time and money with its ability to use laser sensors for increased precision and control. “All the sensing technology is built into the backhoe,” Bucklar explains. “It’s designed into the cylinders for reliability, durability, and precision. You bench the bucket in two places, then dial in the dig dimensions. It allows you to dig trenches without grade checkers.”

According to Bucklar, Caterpillar is the only original equipment manufacturer integrating complete machine control and guidance systems on equipment at the factory. The system is currently available on dozers, motor graders, backhoes, and excavators. He says, “Caterpillar is taking the lead. We’re taking a site approach and integrating AccuGrade through the entire line. With our dealers’ ability to sell and support the complete system, we are raising the bar in this GPS industry that was considered highly complex and specialized only a few short years ago.”

Electronics help the manufacturer help the customer. Hall considers electronics a key product-development tool, with more being done on a computer than ever before. Electronics lower development costs, speed up the development cycle, and increase the probability of success, simultaneously reducing the risk of missing customer requests. “It beats the old process of building three prototypes: a concept vehicle that costs 10 times more, a development vehicle for testing that costs five to 10 times more, and the final prototype that costs two to three times more, without the same level of confidence for customer acceptance.”

Electronics also play a significant role in training. “We just held our first customer clinic in a virtual-reality room,” Hall reveals. The simulator for a skid-steer loader cab “demonstrated increased visibility.”

Although it takes more knowledge to operate an electronically controlled machine, Poppe says “electronic control adds to the skill level.” It also adds functionality and reduces busyness in the cab. A digital, computer-oriented “brain box” means operators are no longer tied to mechanical output. Instead, they are ergonomically free to make the best use of their equipment. Thanks to seat-mounted arm controls on the John Deere backhoe, an operator can position his seat at an angle to better enable him to dig offsides. Particularly in urban settings, more and more frequently operators have to dig around existing structures, maneuvering their tractors at an angle. Poppe says the seat-mounted controls are “more ergonomic and more comfortable and reduce the amount of physical effort required.” Operators also perform better when they can comfortably reach things. Levers used to be mounted on the floor. If a tall operator moved the seat back, the reach was uncomfortable. “Operators do a better job when the controls are on the armrest.”

Operator fatigue is a recurrent issue that evolving technology continues to ease. John Deere wheel loaders have settings on the boom, such as “return to dig” and “return to carry,” that allow an operator to perform tasks consistently at the touch of a button. “It reduces operator fatigue and it reduces the busyness from just running the machine.”

Some settings on the electronic control system can also add a measure of safety. Poppe mentions a boom-height kick-out setting that returns a boom to a preset height. “It keeps the operator from running into things. If you’re just a little off, you might hit something and possibly damage the machine. Then you’re facing downtime.”

Some electronic control systems can also add a measure of onsite safety.

Other electronic controls have additional benefits. John Deere crawlers have a power management setting that allows the operator to select a top speed. The tractor accordingly chooses the optimum transmission ratio. Not only does this option cause less wear on the machine, it also increases fuel mileage, efficiency, and productivity. Poppe notes that John Deere loaders, crawlers, and graders feature automatic shifting, providing a smooth shift all the time.

Case recently introduced electronic blade controls for its hydrostatic dozers. “We’re using more virtual-reality tools,” Hall says. “We have specialists doing a lot of development work on intuitive, ergonomic controls.”

Tiered Response
Beyond customer requests, there are many outside influences driving current development, but everyone acknowledges that diesel emissions regulations are the most critical force directing change. “The legislative challenges drive us down certain paths,” Hall admits, adding that Case tries to stay ahead of the curve. “We try to predict the next thing out there. Tier 4 will impact after-treatment components. Typically, that reduces the efficiency of a diesel engine, but as part of a large, global organization, we have access to a wide range of technology, so we’ll be working on a solution.

“Electronically controlled engines are one of the biggest areas affected by Tier 3,” Hall surmises. Despite that, Case is taking the technology to its 521, 621, and 721 wheel loaders that were mechanically injected. Electronically controlled components are currently featured on Case’s 21-series wheel loaders. Hall calls the 821 and 921 “production machines,” and they are frequently used for site preparation and land clearing, trash compaction at landfills, snow removal, and various duties at quarries and sand pits.

“We had to change the vehicle’s architecture to adapt to the legislation,” he reveals. One change involved the air cooling, but despite the alterations, Case still managed to improve the fuel economy by 3%–5%. “We also improved the diagnostics so maintainability is easier. The equipment is gathering data continually, communicating diagnostic data to the operator through the electronic system to relays on the dash.”

All manufacturers are attempting to continue to provide the same level of profitability for the customer and for their own companies, while meeting legislated requirements. “We are firm believers that the customer won’t accept less performance, despite regulations,” Poppe surmises. He anticipates that things will look “radically different” in a Tier 4 world with its new particulate traps, etc., and he says learning to service machinery will be a challenge. “It’s going to be a big change, but it’s a positive one for us because it gives us the opportunity to talk about it with our service departments and customers. There’s a lot of concern and a need for education. We’re good stewards of the land and we want to comply with all the legislation. Luckily, we got started working on it early.”

Deere isn’t alone. Much of this technology grew fast from small survey companies that served departments of transportation, but now all heavy equipment manufacturers are incorporating it to give their customers the most efficient, ergonomic, productive machinery possible while still complying with emissions regulations.

Looking into his crystal ball, Poppe foresees an emphasis on better management of the work site, maintenance, equipment fleets, and people.

He believes it will be achieved through the use of information. “There’s a difference between data and information. Information puts data into a format so the decision maker can take effective action. That affords us huge opportunities.”

Lori Lovely writes on transportation and technical subjects.

GEC - July/August 2007

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