Telematics for Contractors

August 4, 2017

Telematics for Contractors

The Benefits of Telematics in Construction

There’s a lot of noise in the industry about telematics data. But many contractors are still hesitant to pull the trigger on implementing a fleet management solution. And even those who have been sold on the value of telematics may still be weighing their options. It’s understandable — this is not an industry that quickly embraces change.

But telematics are the future of construction. And a cutting-edge technology that is constantly being improved upon will reap benefits time and time again, whether it’s cutting costs, boosting efficiency or improving strategic fleet organization.

If you haven’t implemented telematics into your asset management program, here’s why you should:

Improved utilization

Telematics data will show you exactly where and how each piece of equipment in your fleet is being used. That not only makes dispatching easier and more effective, but it also helps you identify redundant equipment that could be sold or rented out.

Reduced downtime

The best telematics solutions will provide you with customizable maintenance alerts based on runtime, engine status and service date. Combining this with predictive intelligence will help you avoid critical and costly breakdowns — and the lost money that comes along with them in the form of unused labor, fines or guarantee fees and other delays.

You’ll also save on the other end of the spectrum — you won’t be performing maintenance on machines that don’t need it. For example, a lift that has been operating in a cool, dust-free environment may be able to go longer between scheduled maintenance than normal.

More accurate bids and job costing

A telematics solution will help you calculate your exact cost per minute, leading to more competitive bids. At-a-glance information on fuel consumption, routing and transit times help you identify inefficiencies and find ways to eliminate them. By calculating your exact equipment and labor costs, you’ll be able to deliver more competitive bids, which means more money in your pocket.

Reduced clerical work

An often overlooked benefit of telematics is the reduction of behind-the-scenes office work it leads to. Integrated payroll reconciliation and the elimination of inaccurate timecards mean your accountants can spend less time performing these tasks and more time elsewhere.

ELD compliance

Contractors aren’t exempt from the mandate requiring electronic logging devices. A telematics solution built specifically for contractors with mixed fleets ensures that your entire fleet stays compliant. And that means avoiding thousands, or even tens of thousands in costly fines and penalties.

Less chaos

One of the most important, but often understated benefits of a comprehensive fleet management system is the elimination of headaches and hassles.  Telematics data digitizes paperwork and provides you with a better picture of exactly how your assets are being used. You can quickly and easily spot trends and potential problems before they happen.

Construction is a notoriously slow to adapt industry, but the evidence is clear — telematics are the future. And why not? They make fleet management so much easier. The only real question is will you adopt a telematics platform now, or wait until all your competitors have?