Modern Quarrying Q1 2023

Traditional self-propelled machines see the majority of their maintenance downtime and costs from engine, transmission and associated parts repairs.



If you have been working around quarrying equipment you have probably heard of the “Equipment Triangle”, a philosophy that is one of the fundamental tenets of the Association of Equipment Management Professionals (AEMP). The theory behind the equipment triangle is that all transactions between end users, distributors, and OEM/suppliers should be a win-win for all parties. FIVE EQUIPMENT DEALERSHIP TRENDS THAT WILL SHAPE 2023

W ith major changes in the construction equipment industry underway, dealerships and manufacturers will need to adapt to keep the Equipment Triangle in balance. Here global industry leaders to share their views of what the future holds. Online sales and online rentals will increase significantly In 2021 online sales of automobiles reached 30% of the market, their highest level. In July 2022, Ford announced it would move sales of its electric vehicles online at a fixed price, following Volvo and Tesla. “Whatever happens in the auto industry, is coming to con struction equipment dealerships,” says Garry Bartecki, CFO of a Top 100 rental company and former

allows customers to “build and price” their ideal model. “Dealers are behind the curve and contractors are ahead of the curve when it comes to utilising the Internet,” says Ron Slee, Managing Director Learning Without Scars, a training resource for dealers. The shift to e-commerce creates what he calls “the Amazon effect,” which means dealers will have to transition from selling things to selling services. With brand differentiation waning in the heavy equipment market, Dale Hanna, CEO of Foresight Intelligence, a provider of business systems and telematics software, also believes the battle for customers will be based on customer experience. “Dealers need to adopt more technology to be able to serve more customers with the same amount of people or to attract better people,” he says.

CFO of the Associated Equipment Distributors (AED). In a 2021 study from McKinsey & Company, sponsored by AED, more than 40% of off-highway dealers surveyed think it is very likely or somewhat likely that the OEM(s) they represent will implement a direct-to-consumer model within five years. They expect fully digital sales (including the actual purchase) for new equipment to increase from 7% to 29% and digital rentals to increase from 7% to 33% within five years. “We definitely see things moving in this direction,” says Jefferson Yin, Director of New Business Models and Commercial Intelligence at Volvo Construction Equipment. In 2020, the company began allowing customers to pre-order new electric equipment online, and they recently launched an online configuration tool for those machines, which



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