Construction fleet operating costs are difficult to manage without insight. You need technology to watch where your vehicles are going and how they’re used.
The construction industry is expected to reach unprecedented levels of growth. According to the Bureau of Labor Statistics, it’ll grow around 4.7% from 2023 to 2033. That will lead to nearly 8.4 million new jobs.
However, material rates are also expected to rise. According to AGC, the materials price index rose 3.6% over 12 months. Around 53% of contractors list material costs among their top concerns. Fleet telamatics can help reduce costs and encourage growth.
What Drives Construction Fleet Operating Costs?
Fuel as a Variable Expense
The cost of fuel varies widely. A fleet’s fuel expenses vary based on factors such as the type of vehicles used and how long they sit idle.
Construction fleet costs can be difficult to calculate, making it hard to figure out how to reduce them. According to the Energy Information Administration, gasoline prices are expected to decrease by about 5% in 2026. Then, they’ll increase by about 1% in 2027.
Equipment Downtime and Repair Costs
A study by Aberdeen Strategy and Research found that 82% of companies have experienced downtime in the last three years, costing up to $260,000 an hour.
Repairs are a common driver of construction fleet operating costs. Fixing vehicles can cost thousands, and the money lost when a vehicle is forced to wait for repairs can be even worse.
Idle Time on Jobsites
When vehicles are idle, fuel is literally being burned up every minute. This reduces fleet fuel efficiency.
Idling also affects vehicle longevity. This increases maintenance expenses and fuel consumption.
Poor Equipment Utilization
Poor heavy equipment utilization occurs when you aren’t tracking your fleet. You can end up sending vehicles to the wrong site or for the wrong task.
Why Construction Fleets Lose Money Without Visibility
Equipment Sitting Unused At Active Jobsites
Tracking idle equipment is important, but so is tracking equipment that isn’t being used at all. You can’t find it without telematics.
Overlapping Asset Deployment
Deploying elements of your fleet can backfire without telematics to track everything. In an effort to save time, you can end up using inefficient routes or sending vehicles to the wrong jobs.
Reactive Maintenance Instead of Predictive
When you have limited visibility, you’ll engage in reactive maintenance. You’ll only act upon clear problems.
Telematics solutions allow for predictive maintenance. You can fix a problem before it starts. This allows for benefits such as:
- Improved performance
- Better driver safety
- Lower maintenance costs
How Telematics Reduces Construction Fleet Costs
Real-Time Asset Tracking Across Multiple Sites
Construction asset tracking lets you monitor a vehicle’s location. This is essential when you have a large fleet with multiple job sites.
Monitoring Heavy Equipment Utilization
Telematics lets you know exactly where each piece of equipment is.
Geofencing lets you know when it leaves a certain area. This helps you ensure it stays on task.
Engine Hour-Based Maintenance Scheduling
Maintenance scheduling based on telematics data is scheduled more effectively and keeps your fleet efficient. It reduces mileage and protects equipment.
Fuel Consumption Monitoring by Project
Telematics helps you monitor and manage fuel consumption.
Monitoring it on each project lets you see where fuel waste occurs. It also helps you find more fuel-efficient routes.
The KPIs Construction Fleet Managers Should Track
Cost Per Operating Hour
This figure is like weighing yourself before going on a diet. It gives you a starting figure so you know how far down to go.
Idle Time Percentage
You need to identify the causes of equipment downtime in construction to prevent it. Find out how often it’s happening and where.
Fuel Cost Per Machine
Do certain machines have higher fuel costs? Focus on them to reduce your overall fleet expenses.
Equipment Availability Rate
If a piece of equipment is rarely available, investigate the reasons. Perhaps it isn’t worth keeping or is stuck in the wrong job.
Downtime Per Project
Look at which project types are causing the most downtime. What can you do to change that?
Construction Asset Training vs. Basic GPS
Tracking Generators, Trailers, and Small Assets
Telematics can track the largest or the smallest vehicles. It can track equipment that basic GPS can’t.
Preventing Equipment Theft
Geofencing can prevent theft by keeping drivers from leaving a designated area. Video telamtics provides visual proof.
Improving Jobsite Accountability
The right construction telematics solution provides clearer results than GPS. They’re proof of unsafe or illegal behavior. This keeps managers and drivers more accountable for their behavior.
Fuel Efficiency and Telematics in Construction Fleets
Identifying Fuel Waste
Part of construction fleet fuel management is identifying where fuel is being used inefficiently. Telematics identifies it clearly.
Coaching Operators to Reduce Burn
Telematics can monitor driver behavior. It’s a form of risk management that also helps reduce costs associated with risky behavior, such as speeding or rough braking.
You can use it to train your drivers. Show them how to improve and set up an incentive program for good behavior.
Integrating Fuel Data with Fleet Telematics
Fuel data is only one part of fleet telematics. Integrating it with a full telematics system enables you to make better, data-driven decisions for your fleet.
How EnVue Supports Construction Fleet Cost Control
Customized Construction Telematics Solutions
Envue realizes that a small home repair company needs different telematics solutions than a large construction fleet. We’ll give you a customized solution that meets your needs and budget.
Data-Driven Fleet Consulting
When we tell you how your fleet is performing, it’s based on verifiable data. That gives you a clear picture of where costs are high and how to decrease them.
Ongoing Performance Reviews
We don’t offer one-and-done help. We’ll regularly check in to see how you’re doing and how we can help.
Scalable Solutions for Growing Contractors
Envue helps you stay ahead of trends and grow. We’ll scale your fleet telematics up or down as needed.
Work With EnVue Today
Telematics technology cuts construction fleet operating costs by helping you run more efficiently and spend less on everyday expenses such as maintenance and fuel.
EnVue Telematics has been an award-winning provider of fleet management and custom telematics technology since 2011. We’ll guide you through selecting, implementing, and maintaining the right technology for you.
Get in touch with us today.
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