OEM Off-Highway October 2021 by OEM Off-Highway

OCTOBER/NOVEMBER 2021

Challenge Everything

with Volvo Penta

Reliable Power And Efficiency

Challenge Everything We’ve spent more than a century investing in solutions that deliver more power, reliability, and fuel savings. Leveraging the R&D resources and proven experiences of the Volvo Group to bring our customers to the forefront of sustainable driveline technologies. We don’t just do things for the sake of doing them, and we know you don’t either. Together, let’s rethink the possibilities and take your operations – and bottom line – to the next level with Volvo Penta´s industry-leading Tier 4 Final solutions.

Lower Total Cost of Ownership Better Value in The Long Run

Fuel Efficiency Reduce Your Operational Cost

Service and Support Global Dealer Network with Local Expertise

Visit volvopenta.us/PowerGen to learn more about why Volvo Penta is the best engine supplier partner for your business.

OCTOBER 2021

State of the

INDUSTRY

lectrification and automation remain key innovation areas for the heavy equipment industry while supply chain disruptions have brought about new challenges. PAGE 16

oemoffhighway.com

mapp View. Web meets automation. www.br-automation.com/mappView

H A K K A P E L I I T TA T R I Extend the all-season capabilities of your machinery

800.565.2525

H A K K A P E L I I T TA L O A D E R All-season wheel loader tire with great winter grip

nokianheavytyres.com

CONTENTS

VOLUME 39, NO. 7 | OCTOBER 2021

17 State of the Industry Q&As

Executives from the heavy equipment industry provide their insights into current and future industry trends.

17 Association of Equipment Manufacturers: Dennis Slater, President Search: 21648053

20 CASE Construction Equipment: Terry Dolan, Vice President – North America Search: 21648129 21 Proemion: Robert Michaelides Jr., COO Search: 21648105

24 Eberspächer: Steffen Such, Executive Vice President of the Special Markets Business Unit Search: 21648103

25 Dana Inc.: Marcus King, Vice President of Off-Highway Global Sales, Business Development, Strategy, and Program Management Search: 21710498

ON THE COVER 16 S tate of the Industry

E lectrification and automation remain key innovation areas for the heavy equipment industry while supply chain disruptions have brought about new challenges.

Search: 21648285

28 TTControl: Janosch Fauster, Director Application Development Center, and Markus Plankensteiner, Vice President Sales & Marketing Search: 21648084

29 Balluff: Will Healy III, Marketing Manager Americas, and Dennis Lewis, Managing Director, Sales and Marketing Search: 21648074 32 Poclain Hydraulics: Frédéric Michelland, CEO Search: 21648234

33 HORIBA Automotive: Joshua Israel, Market Development Manager Search: 21648047

FEATURES

Market Forecast

14 Off-Highway Equipment Markets Have

Rebounded in 2021

ff-highway equipment production in 2021 is O forecast to increase 9.5% compared to 2020, and 2022 production to be 12% higher than 2021.

Search: 21648136

36 Schaeffler: Brian Kreifels, Vice President OEM Sales North America, Jeff Hemphill, Chief Technical Officer, and Shoukat Ali Bhamani, Chief Information & Digital Officer Search: 21648090 40 Volvo Penta of the Americas: Martin Bjuve, President Search: 21659863 41 Southco Inc.: James Stroud, Business Development Manager Search: 21648122

42 Topcon Positioning Systems: Tom Hansen, Senior Director, Global OEM Development and Sales Search: 21648060

44 John Deere Power Systems: Nick Block, Director, Global Marketing & Sales Search: 21648086

46 Cummins Inc.: Jeremy Harsin, Global Construction Market Director Search: 21648029 47 Appareo: David Batcheller, President Search: 21648062

48 Hatz Diesel: Mike Hartoonian, President & CEO, Dr. Maren Hellwig, Head of Digital Business Development, and Dr. Sebastian Wohlgemuth, Director R&D Search: 21648049

OEM Off-Highway | OCTOBER 2021

IN EVERY ISSUE Editor’s Note

6 W hat New Tools Can Help and Inspire Your Design Process? Equipment Market Outlook

8 C onstruction Machinery Orders to Grow into 2022 oemoffhighway.com/economics

49 Advertisers’ Index

Off-Highway Heroes

50 C able Control for Tractor-Drawn Equipment

LeTourneau’s Power Control Unit utilized wire rope and enabled control of two devices as a means of improving performance of dozers and other heavy machinery.

Search: 21710420

Online Exclusives www.oemoffhighway.com Find more State of the Industry Q&As online! anyseals USA

Search: 21648100

Aquajet

Search: 21648059

Astec - Material Solutions Search: 21710542

BKT USA Inc.

Search: 21648096

Brokk Inc.

Search: 21648057

Chetra

Search: 21648094

EAO AG

Search: 21710540

FUCHS Petrolub SE Search: 21648112

HED Inc.

Search: 21648068

Multi-Wing

Search: 21648118

SICK Inc.

Search: 21648115

Yanmar Compact Equipment North America Search: 21648107

Published by AC Business Media

EDITORIAL ADVISORY BOARD Craig Callewaert, PE Chief Project Manager Volvo Construction Equipment Roy Chidgey Business Segment Head, Minerals Projects and Global Mobile Mining Siemens Large Drives US Andrew Halonen President Mayflower Consulting, LLC Terry Hershberger Director, Sales Product Management, Mobile Hydraulics Bosch Rexroth Corp. Steven Nendick Marketing Communications Director Cummins Inc. John Madsen Director Engineering & Product Management GKN Wheels & Structures Doug Meyer Global Director of Construction Engineering John Deere Andy Noble Head of Heavy Duty Engines Ricardo Daniel Reibscheid Business Development Manager MNP Corporation Matt Rushing Vice President, Product Line, Global Crop Care AGCO Corp. Allen Schaeffer Executive Director Diesel Technology Forum Keith T. Simons President – Controls Products OEM Controls, Inc. Alexandra Nolde Senior Communication & Media Specialist Liebherr-Components AG Bob Straka General Manager, Transportation SBU Southco, Inc. Luka Korzeniowski Global Market Segment Leader, Mobile Hydraulics MTS Sensors Chris Williamson, PhD Senior Systems Engineer Global Research & Development Danfoss Power Solutions Company

201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

www.OEMOffHighway.com PRINT AND DIGITAL STAFF Publisher Sean Dunphy sdunphy@ACBusinessMedia.com Editor Sara Jensen sjensen@ACBusinessMedia.com Senior Field Editor Curt Bennink cbennink@ACBusinessMedia.com Contributing Writer Thomas Berry Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Art Director Dave Haglund Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Al Bower............................abower@ACBusinessMedia.com Greg Schulz.....................gschulz@ACBusinessMedia.com Nikki Lawson.................nlawson@ACBusinessMedia.com Sean Dunphy.................sdunphy@ACBusinessMedia.com Kris Flitcroft....................kflitcroft@ACBusinessMedia.com Change of Address & Subscriptions — PO Box 3605 Northbrook, IL 60065-3605, Phone: (877) 201-3915 Fax: (847)-291-4816 • circ.OEMOff-Highway@omeda.com List Rental — Bart Piccirillo, Sr. Account Manager, Data Axle Phone: 402-836-2768 | bart.piccirillo@data-axle.com Reprints — For reprints and licensing please contact Greg Schulz at 920-542-1239.............. gschulz@ACBusinessMedia.com AC BUSINESS MEDIA Chief Executive Officer.........................................Ron Spink Chief Financial Officer..........................................JoAnn Breuchel Chief Digital Officer...............................................Kris Heineman Chief Revenue Officer...........................................Amy Schwandt VP Audience Development...............................Ronda Hughes Director, Demand Generation & Education................................................................Jim Bagan Director of Digital Operations & IT................Nick Raether Group Content Director......................................Jon Minnick Published and copyrighted 2021 by AC Business Media. All rights reserved. No part of this publication shall be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. SUBSCRIPTION POLICY: Individual print subscriptions are available without charge in the United States to original equipment manufacturers. Digital subscriptions are available without charge to all geographic locations. Publisher reserves the right to reject nonqualified subscribers. Subscription Prices: U.S. $35 One Year, $70 Two Years; Canada and Mexico $60 One Year, $105 Two Years; all other countries, payable in U.S. funds, drawn on U.S. bank, $85 One Year, $160 Two Years. OEM Off-Highway (USPS 752-770, ISSN 1048-3039 (print); ISSN 2158-7094 (online) is published eight times a year: January/February, March, April/ May, June/July, August, September, October, November/December by AC Business Media, 201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538. Periodicals Postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Send address changes to: OEM Off-Highway, PO Box 3605 Northbrook, IL 60065-3605. Printed in the U.S.A. Volume 39, No. 6, October 2021

EDITOR’S NOTE

What New Tools Can Help and Inspire YOUR DESIGN PROCESS? VOLVO CONSTRUC TION EQUIPMENT

Companies like Volvo CE have utilized LEGO to help inspire and prove out new design concepts. RENAULT

Renault used LEGO to create a model of the transmission it would use for its new E-TECH hybrid powertrains.

ach year, our State of the Industry issue highlights the top trends manufacturers are focusing their design efforts on within the heavy equipment industries. While pulling together this year’s Q&As, it also got me thinking about how companies go about developing their products, and the engineering process itself. There are many tools engineers and design teams can utilize as they create their newest technologies, everything from CAD software to augmented reality to...LEGO? That’s right, LEGO. Earlier this year I wrote about how automotive OEM Renault used LEGO to prove out a concept for its new E-TECH hybrid and plug-in hybrid powertrains. Nikolas Fremau, Hybrid Architecture Expert at Renault, began with a LEGO model. Fremau was determining what type of transmission to use for the system to keep it simple, light and compact while also enabling the electric motor to be a main power source for the vehicle. He determined it was necessary to use a clutchless transmission with gearbox synchronizers, utilizing what is known as dog clutch technology typically found in motorsport applications. Fremau saw his son playing with LEGO Technic sprockets, and saw a similarity in what he was trying to accomplish with the new transmission design, so he bought the pieces he would need and began building a model of the transmission. Read the full article at oemoh.co/Blog_ToysforDesign to learn more about Fremau’s use of LEGO to develop the new powertrain. Considering new methods and inspiration for designs has helped to bring about many of today’s technologies and will be key to future innovations. As many of our State of the Industry respondents noted, technologies like augmented and virtual reality are bringing about new design and manufacturing opportunities. And along with automation, they will help to solve many of the labor and other challenges the industry faces. Listen to my podcast interview with Dijam Panigrahi, co-founder of Grid Raster Inc., to learn more about the growing use of augmented and virtual reality at oemoh.co/21578366.

IN THE NEXT ISSUE

We want to hear from you!

NOV/DEC ISSUE

What other unusual tools can be used to aid the design process? Are you now inspired to use LEGO as part of your design process? Let us know!

• Hydraulic System Advancements • New HVAC Designs • Electric Driveline Technology • New Powertrain Developments • Construction and Military Equipment Design Trends

+ Top New Products of 2021

editor@oemoffhighway.com

OEM Off-Highway | OCTOBER 2021

@OEMEditor

Advanced

Solutions Partner

NEW - Thermo Top Pro 150

CV Standard Battery System

Electrification and Thermal Management     

Modular battery systems up to 800 V High voltage coolant heaters up to 10 kW Thermal management for batteries and cabin High-efficiency particulate air filtration for operators Heaters for the engine, cabin, hydraulics and fuel

webasto-products.com

HEPA Air Filtration System

EQUIPMENT MARKET OUTLOOK

Sponsored by Eberspächer

oemoffhighway.com/economics

Europe Ag & Forestry Machinery Production:

U.S. Farm Machinery Production: • U.S. Farm Machinery and Equipment Shipments during the 12 months through June were up 16.4% from 1 year ago. • Declining macroeconomic indicators portend less acute inflationary pressures moving into 2022. This will likely contribute to business cycle decline in Shipments next year.

Annual % change in 12 month moving totals

• Europe Agricultural and Forestry Machinery Production during the 12 months through June was up 14.6% from 1 year ago. • Trends in the Europe Manufacturing Purchasing Managers Index and in the Europe Retail Trade Index for Food, Beverages, and Tobacco suggest Production will transition to the back side of the business cycle in the near term.

Annual % change

15 15.6%

16.4%

13.8%

14.6%

11.5%

99.0

100.1 99.7 99.4 99.0

99.1

97.5 97.0

1.9%

-3

0.4% -0.7%

-3.1%

Feb

Mar

Apr

May

Jun

-2.4%

96.5

-4.5%

-6

Jan ’21

100.9

98.0

4.0%

Dec

100.7 100.4

98.5

3.0%

6.7%

Nov ’20

Monthly index

99.5

-5

101.0 100.5

11.7%

• The Europe Leading Indicator monthly data rose further in July; however, the monthly rate-of-change has peaked and is declining. • Given the typical lead time, the Leading Indicator monthly rate-of-change is signaling that the European industrial sector will transition from accelerating growth to slowing growth in early 2022.

100.0

Europe Leading Indicator:

96.0

-6.1%

-9

Nov ’20

95.5 Dec

Jan ’21

Feb

Mar

Apr

May

Jun

Dec Jan ’20 ’21

Feb Mar

Apr May Jun

Jul

Editor’s Note: Please note that this chart has been modified on the Y-axis to show the trend more easily.

U.S. HeavyDuty Truck Production: • U.S. Heavy-Duty Truck Production during the 12 months through July was up 20.0% from 1 year ago. • Business cycle rise for each of the North American economies (Mexico, Canada, and the U.S.) will boost demand for the transport of goods and bodes well for Production in the near term. However, leading indicators are signaling a transition to slowing growth in the coming quarters. 20.0%

16.7%

• Annual Production was down 19.0% from 1 year ago. Quarterly Production came in 24.8% higher than the same quarter last year, but the double-digit rise is largely a function of the severity of decline during the pandemic. • A handful of leading indicators for China have turned downward, signaling that cyclical rise may be short-lived.

-10

-15

-5

-4.9%

-20

-30

-19.0%

Dec ’20

-27.5%

Jan ’21

Feb

Annual % change in 12 month moving totals

Mar

20.5%

10.5%

10 5

-31.5%

-25 -27.8%

19.6%

-30

-20.6% -29.1%

Annual % change in 3 month moving totals

-25

-15

• Germany Industrial Production during the second quarter was up 20.5% from the second quarter of 2020. • Supply chain issues may hinder Production rise during the coming quarters, despite growing demand and ongoing recovery.

-20

-10

Germany Industrial Production:

-5

10.4%

China Diesel Bus Production:

Apr

May

Jun

Jul

-33.1%

-35 -37.1%

-40

OEM Off-Highway | OCTOBER 2021

Nov ’20

Dec

Jan ’21

-32.7%

-33.2%

-0.8%

-35.2%

-35.5%

Annual % change

Feb

Mar

Apr

May

Jun

-5

-3.2%

Nov ’20

Dec

-2.6%

-4.0%

Jan ’21

Feb

-1.6%

Mar

Apr

May

Jun

U.S. Construction Machinery, New Orders: • U.S. Construction Machinery New Orders in the 12 months through June were 20.5% above the year-ago level. • The quarterly rate-of-change for U.S. Housing Permits ticked down, a sign that cyclical decline is on the horizon for the housing market and, eventually, New Orders. Given the current market fundamentals, we expect slowing growth, not contraction, in the early quarters of 2022. Annual % change in 12 month moving totals

U.S. Defense Industry, New Orders:

North American Rotary Rig Count: • The North American Rotary Rig Count averaged 482 in the 12 months through July, down 40.2% from 1 year ago. The Rig Count annual average has risen for 3 consecutive months. • The OPEC+ agreement to increase oil production levels may incentivize U.S. producers to invest in reactivating rigs to avoid losing market share.

Annual % change in 12 month moving totals

0 20.5%

20 15

-20 -30

4.7%

-6 -8

-50

-5 -7.4%

Dec

-48.1%

-50.8% -53.7%

-6.7%

Jan ’21

Feb

-6.4%

-40.2%

-1.5%

-9.3%

-2.0%

-4

-40

Nov ’20

Annual % change in 12 month moving totals

-2

-10

3.6%

13.6%

4 2

-10

16.4%

• U.S. Defense Capital Goods New Orders in the 12 months through June were 8.8% below the year-ago level. • The New Orders annual rate-of-change is tentatively rising off a March 2021 low; typically, rise in the rate-of-change lasts for about 1 year.

Mar

Apr

May

Jun

-60

Dec ’20

Jan ’21

-56.6%

Feb

-58.8%

-58.1%

-54.2%

Mar

Apr

May

-9.3%

-10 Jun

Jul

-12

-8.9%

-8.8%

Apr

May

Jun

-10.3%

Nov ’20

Dec

Jan ’21

Feb

Mar

Subscribe Now

to OEM Oﬀ-Highway’s Print & Digital products at oemoﬀhighway.com/subscribe

OEM Off-Highway | OCTOBER 2021

A LOT OF TECHNOLOGY GOES INTO IT. SO YOU’LL LIKE WHAT YOU GET OUT OF IT. You need efficient power you can count on. And that’s exactly what we offer. In fact, FPT engines are engineered with the technology to deliver dependable performance and lower operating costs. Engines with features like EGR-free combustion, common rail fuel injection, and a DPF-free After Treatment solution, all designed to improve performance and reduce fuel consumption. In other words, the kinds of engine solutions you’re looking for – and that we’ve been providing – for more than one hundred years. Learn more at fptindustrial.com

MARKET FORECAST oemoffhighway.com/21648136

Off-Highway Equipment Markets Have REBOUNDED IN 2021

©PAUL – STOCK.ADOBE.COM

Off-highway equipment production in 2021 is forecast to increase 9.5% compared to 2020, and 2022 production to be 12% higher than 2021. contributed by Jim Downey, Vice President-Global Data Products, Power Systems Research

or the purpose of this article, we are looking at North American production of agricultural machinery, construction equipment and industrial products. All these segments are projected to be much better in terms of production when comparing this year to last year. The U.S. GDP dropped 3.5% in 2020, which was the worst performance in over 70 years. The U.S. economy is set for a strong recovery in 2021 after coming out of the worst of the COVID-19 pandemic. Overall global economic recovery has led to an increase in off-highway equipment demand, which started in the fourth quarter of 2020. Another positive note for off-high-

OEM Off-Highway | OCTOBER 2021

way equipment production in 2021 is that manufacturing trends present some growth opportunities, including sustainable and environmentally friendly production methods and sourcing. Favorable demand and agile decision making further support these trends. As economic conditions continue to improve, Power Systems Research (PSR) expects an increase in market demand for off-highway products. If projected trends are favorable, PSR forecasts that production volumes in North America could reach or surpass pre-pandemic levels of 2019 by 2022. PSR expects 2021 production to increase 9.5% compared to 2020, which declined by 11%. Additionally,

it forecasts 2022 production to be 12% higher than 2021.

Agricultural Machinery Supply and demand are the main price drivers in agricultural markets, more so than any other commodity markets. Soybeans and corn are the two most planted crops in the United States, accounting for 55% of the principal corn acreage. China, as a major buyer of ag products, has been buying soybeans and corn at near record amounts, which helps lift prices. This healthy demand should continue. Short supply levels are also raising prices. With a positive agriculture market, equipment demand is increasing. This

year, PSR is projecting ag machinery production in North America to increase 9.8% from 2020 levels. Additional production growth is projected at 13% for 2022. The agricultural segment has weathered the pandemic better than some other sectors and is well positioned to continue to grow over the next few years. By 2022, production levels will have reached levels last seen in 2018.

Construction Equipment PSR expects the construction equipment market to follow strong economic recovery patterns. Housing starts regained ground in the second quarter of this year, and demand remains very strong, mainly due to a lack of inventory. These conditions will drive demand for new equipment. At the same time, high levels of current and future infrastructure spending, leading drivers for the segment, generate growth projections for the segment that are quite favorable. Washington has passed legislation, which includes a future comprehensive infrastructure bill that is committed to support the demand in the market by investing heavily in infrastructure and green technology. This will serve as a catalyst for the electrification of equipment and will create substantial opportunities in this segment that are fully supported by government funding and subsidies. PSR’s most recent overall projection for production of North American construction equipment is positive at 8.9% in 2021 versus 2020. It is forecasting additional growth of 9.7% in 2022. PSR anticipates this recovery and growth to continue as we move farther way from the effects of the COVID-19 pandemic.

SELLICK

As with agricultural machinery and construction equipment, PSR expects the rebalancing of distribution of market shares and supply chains. Growth dynamics closely mirror the construction segment. The main drivers for industrial products are material handling and forklift applications, where the demand remains strong. Material handling is supported by stronger levels of freight, and PSR expects this to continue into 2022. Currently, PSR expects overall growth in the industrial segment production numbers of 9.6% in 2021 versus 2020 with further growth of 12.4% in 2022.

Increased demand for off-highway equipment is generating healthy order books; however, the supply side is not always keeping up with demand. PSR expects as the pandemic recovery continues some of the supply chain issues will diminish. As vaccinations increase and other mitigation efforts are kept in focus, this should help depress the impact of the new Delta variant (the latest strain of COVID) this year and into 2022. | This article was written and contributed by Jim Downey, Vice President-Global Data Products, Power Systems Research

Industrial Products In this segment, PSR is tracking products such as aerial lifts, cranes, forklifts, oil field equipment, rough terrain forklifts, scrubbers and sweepers, and terminal tractors, among others. Industrial products follow a similar trend to that of construction equipment. ©1JAIMAGES – STOCK.ADOBE.COM

OEM Off-Highway | OCTOBER 2021

S TAT E O F T H E I N D U S T RY

State of the INDUSTRY

2021

Electrification and automation remain key innovation areas for the heavy equipment industry while supply chain disruptions have brought about new challenges.

lectrification and automation continue to be among the dominant trends in the heavy equipment industries. Component manufacturers and OEMs alike are growing their investments in these areas, and see them as key drivers for innovation going forward. As the global economy began to recover in the last half of 2020—and along with it the heavy equipment industries, particularly construction and agriculture—there came supply chain disruptions and labor challenges. While the latter is nothing new, the global health pandemic exacerbated the issue and is a component of the supply chain struggles manufacturers in all industries are facing. In this year’s State of the Industry interviews, executives within the heavy equipment industries provide their insights into these supply chain and labor challenges, and what they’ve been doing to overcome them. They also provide their thoughts on the continued growth of electrification and automation, and other key industry trends. Interview topics for 2021 include: • Global Markets, Government & Trade • Supply Chain Disruptions • Diesel, Electric & Other Power Alternatives • Data, IoT & Connectivity • Automation & Smart Systems • Challenges & Opportunities Be sure to head online for full-length interviews, including video interviews with some of the respondents, as well as executive Q&As not seen in print at www.oemoffhighway. com/magazine. |

OEM Off-Highway | OCTOBER 2020

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648053

Passage of Federal Infrastructure Bill Would be Transformational

responses provided by Dennis Slater, President of the Association of Equipment Manufacturers (AEM)

Investment in U.S. infrastructure would bring benefits to many communities, as well as the equipment manufacturing industry. Global Markets, Government & Trade How would passage of an infrastructure or other similar bill in the U.S.—or the equivalent in other countries—benefit the heavy equipment industry? The passage of a federal infrastructure bill this year will make a transformational investment in our nation’s infrastructure and provide numerous benefits to American communities across the country. This includes many of the communities where equipment manufacturers have large footprints with 2.8 million men and women throughout our industry in all 50 states. A recent analysis of the bipartisan supported infrastructure bill in front of Congress indicated over 100,000 equipment manufacturing jobs, which pay 35% above average, could be created before the end of Biden’s first term and generate over $2 billion in new federal, state, and local tax revenue from the equipment manufacturing industry, while resulting in an additional $27 billion in overall economic output, How, if at all, has the current state of the global trade tensions—particularly those between the U.S. and other countries—had an impact on the industries you serve? We need pro-growth trade policies to sell more American products and keep equipment manufacturers strong. This includes free and fair trade policies as equipment manufacturers rely on

mutually beneficial trade relationships with our partners. For example, 30% of equipment made in the United States is destined for export. A robust trade market also helps support many of the 2.8 million good-paying jobs our industry supports in the U.S. AEM believes tariffs are taxes on Americans and jeopardizes U.S. manufacturing jobs and the tariffs in place now hurt both equipment manufacturers and farmers by limiting our nation’s competitiveness and costing American taxpayers billions. Tariffs also raise costs of production and cause job loss for U.S. manufacturers and undermine America’s global competitiveness. President Biden and our nation’s elected officials must support trade policies that improve relationships with global trading partners, curb the misuse of tariffs and other protectionist policies, and renew key legislation to keep American manufacturing competitive. We are encouraging the administration to advance policies that sell more American manufactured products, and laws that strengthen critical U.S. manufacturing supply chains.

Challenges & Opportunities What are the biggest challenges facing the heavy equipment industry currently, or do you see the industry facing in the coming years? Manufacturers across the nation are facing an industry-wide workforce shortage. Between the aging workforce and fewer graduates seeking careers in

the trades, the gap is growing, rapidly. The struggle to attract and retain talent is evident. Industry leaders are asking: How do manufacturers in the modern age create an appealing culture for the next generation? According to a study by The Manufacturing Institute, the vast majority (78%) of companies indicated that they were ‘very or somewhat’ concerned about the impending aging workforce exodus. More concerning, however, is the concurrent brain drain that accompanies those retirements. Awareness is more than just looking around and realizing the industry’s workforce is growing older. While that certainly is the case, now is not the time to ignore the issue or look the other way. Communication is an essential piece of addressing an aging workforce. Creating the right environment for talking about future plans, goals and aspirations, at any age, is key. Incorporating discussion of the future with all employees can keep organizations from being surprised by a sudden retirement. It is also a great way to discuss employee development, to see if employees are engaged with their work, or if they are looking for a new challenge. Open communication can also allow older workers to communicate if working conditions have become physically stressful and, if so, for the employer to offer other alternatives. Communication should create a culture where all workers, including older workers, feel supported, valued and engaged. |

OEM Off-Highway | OCTOBER 2021

CUMMINS POWER UNIT CAPABILITY BOOSTED WITH NEW POWER TAKE-OFFS

ummins B6.7 and L9 Performance Series Power Units will feature new engine power take-off (PTO) capabilities to support key applications such as cranes, crushers and screeners. Cummins’ power units are available from 75 – 503kW (100 – 675hp) delivered as a complete and ready-made package. This comprises an engine, exhaust aftertreatment system, radiator and cooling system, plus auxiliaries such as mounting feet, hoses and an air cleaner. More than 60% of the content is pre-approved, making the machine integration process simpler and quicker.

The Performance Series power units offer an ultra-clean, flexible dropin solution for manufacturers. The high-power density of our engines enables them to deliver high machine capability for hard working applications such as crushing, screening and pumping. To increase the flexibility and capability of the power units, new single and dual rear-engine power take-offs (REPTO) are being added. They complement the standard PTO capability used for items such as hydraulic pumps and will be available on Cummins base engines as well as power units. As an example, fitted with the dual REPTO, the L9 will have a total drive capability of 560 Nm. This will make the engine capable of driving additional pumping capability through SAE B

OEM Off-Highway | OCTOBER 2021

2 and 4 bolt mounts. Integrated into the flywheel housing the dual REPTO is compact and has a minimal impact on engine packaging. Added weight is approximately 100kg. For equipment manufacturers will have the ability to efficiently drive more from the engine without the need for additional aftermarket systems. This supports driving of hydraulic pumps for many machine functions from steering systems to fans, etc. It reduces installation costs and complexity, for a more integrated solution. Web: cummins.com Tel: 1-800-CUMMINS™ (1-800-286-6467) Email: care@cummins.com

OEM Off-Highway | OCTOBER 2020

POWER TO DO MORE FOR YOU.

Resilient product. Global support. Engines that have the power to do more for you. The Cummins B6.7 Performance Series engine is proven in a wide range of industrial applications. Power increases to 326 hp / 243 kW enabling replacement of engines with higher displacement with no impact on productivity. cummins.tech/cummins-oem-offhighway

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648129

Signs of Continued Optimism for Construction Equipment Industry Demand for equipment will remain high, and will likely be aided by the impending infrastructure bill in the U.S., while technology advancements continue to bring performance improvements. Global Markets, Government & Trade How would passage of an infrastructure or other similar bill in the U.S.— or the equivalent in other countries— benefit the industry? 2021 has been a strong year for equipment demand in construction, and that’s without the presence of a finalized infrastructure bill. We see there being an increase in demand yet again for 2022 — and that will only be bolstered further by the passage of an infrastructure bill here in the next few months. As such, we see continued, multi-year strength in demand for construction equipment barring any additional major global disruption or emergency.

Challenges & Opportunities What are the biggest challenges facing the industry currently, or do you see the industry facing in the coming years? Labor, both in the workforce and on the diesel technician side, will continue to be a challenge. Supply chains will continue to affect every aspect of the construction industry, from the materials used in construction to the raw materials we use in the manufacturing process. And while there is a lot to be optimistic about, there remains the uncertainty surrounding the global pandemic and what effect that will have on business and the economy.

OEM Off-Highway | OCTOBER 2021

What are some of the biggest opportunities you see in the industry? While we are in an extremely unique period of time for this industry, there are many signs for continued optimism, not just for 2022, but beyond. Continued demand for equipment. A backlog of work that shows no signs of slowing down any time soon will continue driving that demand. And an infrastructure bill here in the United States that promises to generate even more demand. Additionally, with the challenges of labor shortages, increasing fuel charges, etc., I believe you will see a more rapid pace of design that incorporates more electrification in products and automation to assist contractors with challenges of identifying and hiring skilled laborers. Machine control is just a start where through intelligence built into the units the machine can assist the operator in performing key tasks more effectively. Are there any technologies or trends which you are currently excited about in the heavy-duty vehicle industry, or most looking forward to seeing in the coming years? We’ll continue seeing more intuitive executions of technology in equipment that make it easier for adoption and success. Electrification is going to remain one of the biggest topics for years to come. And I sense that, while labor is always going to be a challenge, we’re seeing the beginnings of a real movement to attract youth and new

responses provided by Terry Dolan, Vice President – North America, CASE Construction Equipment

blood to the industry — and many of these advances in technology will help accomplish that. We’ll also continue to see the digital transformation that the industry is embracing more and more every day. CASE and CNH Industrial are fully embracing this digital transformation, as evidenced by CNH Industrial’s recent acquisition of Raven Industries. The matching of Raven’s technologies and CNH Industrial’s growing product portfolio will transform many earthmoving businesses through greater productivity, intelligence and efficiency. What do you think will be the biggest change to occur in the heavy-duty vehicle and equipment industries in the next decade? Demand, acceptance and deployment of alternatively powered equipment—particularly electrified—will remain the biggest technological push through the end of the decade. The labor market and global health will be two larger mainstream issues that have lasting effects on our industry. And the challenges of the supply chain we’re facing now will drive new and more efficient ways of doing business on a global scale. The industry will continue to embrace total digital transformation and automation of processes that help address operator performance and labor shortages, which we’ll continue to embrace through new capabilities made possible by CNH Industrial’s recent acquisition of Raven Industries. |

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648105

OEMs Can Leverage More Benefits From Modern Telematics Solutions

responses provided by Robert Michaelides Jr., COO, Proemion

Telematics can provide a wealth of information beyond fleet management which OEMs should take advantage of to provide customers a better service experience. Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years? Telematics is more than just fleet management, and many OEMs do not leverage all the benefits a modern telematics solution offers. For example, already today, a telematics solution allows service technicians to diagnose their machines remotely, plan machine maintenance online, or perform overthe-air updates. Hence, in the future, we see more OEMs utilizing telematics fully to offer their customers a better service experience while optimizing their internal processes to be more cost efficient. For example, based on our customer results, performing service tasks remotely reduces travel costs by 20-30%. Also, firmware over-the-air updates for critical enhancements can save up to $1,200 on after-sales costs per service case. Furthermore, we expect machine data to be utilized more extensively within other OEM business units. Some examples are data-driven product development, upselling (unlock premium features remotely), or offering new usage-based business models (CAPEX to OPEX). What challenges remain for the continued adoption of data, IoT and connectivity related technologies or systems? Although the pandemic increased the awareness of the benefits of digitization and accelerated the adoption

of cloud services, most OEMs do not unlock the full potential. For example, many OEMs only collect insignificant machine data such as geo-position but fail to capture other more value-adding machine metrics. Additionally, companies should re-think their cloud architecture to enable data exchange

between different ecosystems (e.g., ERP system) to combine various data sources. This allows automating business processes end-to-end as well as making critical business decisions in real time. |

SENSORS FOR MOBILE MACHINES

 Stroke measurement in hydraulic cylinders – no piston-rod rifle boring required!  Robust rotary encoders for safe angle and speed measurement! Up to PLd!  Draw Wire-actuated rotary encoders for position measurement utilizing proven technology!  Inclinometers for non-contact measurement of vehicle orientation!

SIKO Products Inc., www.siko-global.com

OEM Off-Highway | OCTOBER 2021

Curtis Instruments

Your Electrification Partner for Agricultural Equipment and Mobile Machinery For the electrification of agricultural and farm equipment, think Curtis. With over 60 years of expertise with battery-powered vehicles and mobile machinery, and a global record of innovation and product excellence, we are ready to partner with you in the development of your hybrid diesel-electric and fully electric equipment. Curtis will support your engineering team at every step in the product development process, from initial prototype design through to production release. Highly reliable Curtis motor control inverters and control systems are available in a range of models suitable for every type of application, and are packed with cutting edge features and functions that make system integration simple. We will work with you as needed, whether it is to assist with the design and development of electric traction systems, On-Engine Generator Control or electro-hydraulic control systems. Get Curtis on your team, and let your mobile equipment benefit from our expertise and the robust, reliable and proven Curtis electrification technology.

See for yourself. We are ready to help you.

www.curtisinstruments.com

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648103

Mix of Technologies Ensures Preparation for the Future Offering technologies to meet varied traditional and alternative mobility needs assures industry needs continue to be met.. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? How will electrification—or other alternative energy/power systems—continue to advance in the heavy equipment industry? For our thermal management solutions, we see opportunities in the electrification of mobility in the heavy equipment industry. The trend of e-mobility can also be recognized in the municipal sector, among others. Municipalities are increasingly turning to alternative drives for off-highway vehicles like hybrid- or electric-driven tractors, wheel loaders or small excavators. Electric forklifts are also being used more often. Together with our AC specialist Eberspächer Kalori, we provide a wide range of suitable systems for these new requirements. We have products especially for off-highway applications in our portfolio—like cabin pressurization systems for pollutant- and dustfree air, HVAC systems for off-highway combustion engine applications as well as for electrified powertrains from 24-800V or heat pump solutions. In the field of battery management systems we also have experts in our group of companies with our Canadian subsidiary Eberspaecher Vecture and our specialists for vehicle electronics. In our exhaust technology business, we see quite big potential for diesel engines in the heavy-duty and long-distance transport. It is our

OEM Off-Highway | OCTOBER 2021

goal to provide clean mobility with our emissions control systems, meeting the highest emissions standards worldwide. We assume that with Euro 7, the potential for reducing emissions in conventional combustion engines has largely been exhausted. By this time, the air emitted will, on average, be cleaner than the air taken in. To achieve this, the colleagues at Purem by Eberspächer have invested a lot in recent years, for example, in electrical heaters for the catalytic converter and exhaust gas flow, power electronics, burner solutions, highly efficient mixers and mixing structures as well as new acoustic and emission valves. However, climate-damaging CO2 remains. Fossil fuels must therefore be replaced as quickly and consistently as possible by renewable and carbon-neutral forms of energy, namely green hydrogen and synthetic fuels. After all, CO2 targets cannot be achieved through e-mobility alone. The aim should be to operate combustion engines in a climate-neutral manner by drawing the same amount of CO2 from the atmosphere during the production of the fuel as is emitted during operation by the end-user. This will continue to require exhaust systems in the future and our teams are already working on these. In addition, there are markets and fields of application such as heavy commercial vehicles, where pure electromobility is difficult to imagine. We see this in markets like South America, Africa and many Asian countries such as India. In

responses provided by Steffen Such, Executive Vice President of the Special Markets Business Unit, Eberspächer

addition, wherever long distances are to be managed, like in the heavy-duty traffic of Northern America. According to current forecasts, even in extreme scenarios experts predict that more the 70 million new vehicles with combustion engines will be counted in the year 2040. These are opportunities for us to further drive the clean mobility of tomorrow.

Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years, and what challenges remain for the continued adoption? We are currently working on connectivity solutions meeting the needs and requirements of our customer. With our new e-connected platform, we launch a completely new product family: the cloud-based application will bundle all digital services in the future and enable customers, especially fleet managers, to use and manage digital services and information in one place. The first digital product that will be available via the platform is a Cold Chain Monitoring Service. It monitors temperature, location, battery stats and vibration during transport as constant, defined temperature is imperative for product groups such as food, pharmaceutical and medical products. Soon to come are also digital services geared to the off-highway segment such as predictive maintenance for our thermal management components – services that focus on uptime and minimizing operating cost. |

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21710498

eMobility Offers Exciting New Opportunities New advancements in eMobility technologies will bring performance enhancements to off-highway applications. Diesel, Electric & Other Power Alternatives How do you see the role of diesel engines evolving in the coming years? Hybrid, electric, hydrogen fuel cell, and natural gas will all play an important and growing role in the future of the commercial vehicle, off-highway, and industrial markets, but diesel will continue to play a significant role even as we reach out to 2040. The commercial vehicle and off-highway markets—which currently are largely diesel—have made important progress over the last half century in improving emissions. Diesel powertrains will continue to compete in the total cost of ownership conversation as further weight reductions and efficiency improvements become available. For example, our highly efficient hydromechanical variable transmission helps to reduce the fuel consumption of diesel-powered powertrains by enabling the engine to run at a consistent speed in its most efficient operating range in all duty cycles. Also, Dana’s on-engine generator offers new vehicle architecture capabilities for off-highway hybrid applications where space constraints previously limited hybridization or engine downsizing. It offers improvements over competing technologies with respect to overall performance, physical packaging size, features, and flexibility. Additionally, there are significant challenges in cost effectively establishing the electrification infrastructure for agriculture applications, so conventional powertrains will endure for the foreseeable future.

How will electrification—or other alternative energy/power systems— continue to advance in the heavy equipment industry? We see electrification continuing to expand where e-Mobility systems deliver performance gains with a competitive total cost of ownership, and Dana has strategically invested to build on our more than a century of leadership in powertrain solutions. In the past year, our acquisition of Rational Motion GmbH and investment in Pi Innovo LLC have further extended our ability to provide complete software, controls, integration, and engineering services to support our customers. These solutions position Dana to assist our customers during their transition to electrification and ultimately enhance the flexibility, robustness, efficiency, and safety of electric vehicle systems. Our wide and growing portfolio includes e-Drive technologies, thermal management solutions, and integration capabilities that help OEMs improve the performance of new energy vehicles. Additionally, we are developing e-Mobility and e-Motion systems across all the off-highway markets we serve, and we are supplying many of our customers with prototypes for testing. Off-highway OEMs are currently focusing on the electrification of compact equipment in construction, lift trucks used in warehouse environments, and underground mining vehicles where the cost of ventilation is driving the adoption of e-mobility solutions.

responses provided by Marcus King, Vice President of OffHighway Global Sales, Business Development, Strategy, and Program Management, Dana Inc.

Challenges & Opportunities Are there any technologies or trends which you are currently excited about in the heavy-duty vehicle industry, or most looking forward to seeing in the coming years? The off-highway market is in an interesting place at the present time. As e-Mobility technologies continue to expand and take hold in a gradual way, we also have to address rapidly growing customer demand with field-proven drive technologies that maximize the performance of conventional diesel-focused vehicle architectures predominant today. To this end, we are excited about the Spicer® HVT, an advanced powersplit transmission that supplies significant advantages across the board over existing competitive conventional transmissions. It utilizes an advanced electronic control system to continually adjust the mix of hydrostatic and mechanical power, allowing the engine to maintain a consistent speed in its most efficient operating range. This July, we launched the Spicer HVT1 specifically engineered for the unique duty cycles of agriculture telehandlers. It offers fuel savings of up to 30% when compared with agriculture telehandlers that use conventional transmissions. We’re also excited about our expanding portfolio of e-Mobility technologies for next-generation electric-driven vehicles. Our investment in resources to support the global shift toward electrification provides Dana with a large toolbox of offerings for a broad range of low- and high-voltage off-highway vehicle applications. |

OEM Off-Highway | OCTOBER 2021

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648084

IoT Solutions Offer Huge Potential to Improve Machine and Process Management

responses provided by (left to right) Janosch Fauster, Director Application Development Center, and Markus Plankensteiner, Vice President Sales & Marketing, TTControl

Data collection at the machine will increase and enable deeper analysis in the cloud to improve efficiency and processes. Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years? We see huge potential to improve machine and process management with IoT solutions in the coming years. The collection of data at the point of the machine will increase and enable deeper analysis in the cloud with technologies such as streaming analytics and big data. This will enable machine builders, owners and operators to vastly improve the economic efficiency of their processes. What potential do you see in the use of artificial intelligence (AI) and augmented/virtual reality (AR/VR) – both for the design and manufacture of products, as well as within equipment? Emerging technologies will advance machinery development and operator function in the future. On development projects, we already benefit from fine-tuning machine processes, as well as quality control on the equipment. A perception algorithm, for instance, can observe harvested grain quality and automatically optimize the harvesting process. Sophisticated assistance functions allow less skilled workers to be more efficient, and increase the safety of operators and bystanders by advanced perception systems. Augmented and virtual reality can be of value for

OEM Off-Highway | OCTOBER 2021

operating equipment in remote locations or hazardous environments. A combination of automated propulsion and augmented reality can support the operator in low-visibility scenarios. What advancements do you see on the horizon for connectivity and machine learning in the next decade? We expect machine learning to have a positive impact on product costs. Also, some spillover effects from automotive can lead to reduced chip and sensor costs. That will be necessary, since multiple Central Processing Unit (CPU) cores, accelerators and Graphics Processing Units (GPUs) will have to execute the growing number of advanced assistance functions, resulting in an exponential growth in the amount of software. A short time to market can still be ensured, despite facing massive complexity, by relying on certified chips, ECUs and robust software frameworks. What challenges remain for the continued adoption of data, IoT and connectivity-related technologies or systems? Technology in emerging technologies is progressing a great deal. The current innovation cycle for some key components is about 2 years, where the new generation outperforms the previous generation by hundreds of percent in every aspect of performance. This fuels challenges relating to obsolescence handling; remember, for

example, the switch to 5G on one hand and sunsetting 3G on the other hand. The automotive industry postponed its plans for level 4 and level 5 autonomy as a result of the advancements in computational powers and deep neural networks that remained necessary. We think the heavy equipment industry can learn from that experience by setting realistic targets and by better appraising the investments needed to implement our use cases.

Automation & Smart Systems What further benefits will automation bring to the heavy vehicle and equipment industries? Many heavy vehicles are expensive, high-tech pieces of equipment used in labor-intensive industries. Skilled operators are scarce, but the highest level of machine performance and safety is still expected. Automated quality control and the automated fine-tuning of operational parameters enable also less experienced operators to achieve high levels of productivity. |

Head to the Web Listent to our podcast interview with Janosch Fauster to learn about more emerging trends at oemoh.co/Podcast_TTControl.

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648074

Eaton’s mVEC

Automation and Robotics Key to Overcoming Labor and Other Industry Challenges Business strategies should include automation and robotics to help extend the careers of experienced employees while also making work easier and safer.

Economical CAN Network Oversight for High-Power Circuits

The Multiplexed Vehicle Electrical Center (mVEC) is a rugged power distribution node on the J1939 network. responses provided by (top) Will Healy III, Marketing Manager Americas, Balluff Worldwide, and (bottom) Dennis Lewis, Managing Director, Sales and Marketing, Balluff Inc.

Data, IoT & Connectivity What potential do you see in the use of artificial intelligence (AI) and augmented/virtual reality (AR/VR)? Healy: By using AR/VR, we can dramatically shorten the cycle of operator training. Many of these technologies have proven that they can reduce training from weeks to days or days to minutes. What challenges remain for the continued adoption of data, IoT and connectivity related technologies or systems? Healy: Skillset. We have a silver tsunami washing over us right now with baby boomer retirements in...the U.S. workforce as a whole. We’ve not done a good job bringing millennials, generation Z, women or minorities into our industry and until we find ways to recruit and retain large segments of these groups, we will struggle to successfully implement technologies into our companies. Lewis: Creating standards for data will be a challenge, especially in the industrial world. There are so many industrial networking protocols already in operation that make creating one platform for transmitting, receiving and storing data difficult. |

Features include relay control as well as diagnostic reports for fuses, relays and circuit breakers via the vehicle’s CAN bus

For stocking information call 800-328-2724 or visit www.waytekwire.com

Head to the Web Visit www.oemoffhighway.com/21723059 to watch our video interview with Will Healy for more industry insights.

OEM Off-Highway | OCTOBER 2021

With the use of patented Bussmann VEC “power grid” technology, the mVEC is ideal for high-current circuits found in the heavy truck and commercial vehicles industries.

Embedded Software Development and Validation In the area of commercial and off-highway vehicles, innovations in future drive technologies, as well as in highly automated and autonomous systems, are advancing rapidly. Specialty vehicles and machines in construction and agriculture segments are also becoming increasingly sophisticated, automated, and connected. dSPACE – your partner in simulation and validation – offers comprehensive, end-to-end solutions to develop and test the software and hardware components of new vehicles. For decades, dSPACE solutions have accelerated the development of innovative vehicle technology and made its validation more reliable.

Autonomous Commercial Vehicles The development of highly automated and autonomous commercial vehicles is progressing fast. Driverless shuttle buses are already deployed in many cities. Autonomous,

OEM Off-Highway | OCTOBER 2021

self-driving trucks and other commercial vehicles are becoming more of a reality. With dSPACE, you can bring safe autonomous vehicles to the road. dSPACE solutions provide an integrated development and test environment for data-driven development of highly intelligent autonomous systems – from data logging to comprehensive component and product testing.

Specialty Equipment and Specialty Vehicles: Intelligent and Increasingly Autonomous Specialty equipment and specialty vehicles do amazing things, for example, lifting heavy loads, digging deep pits, plowing fields, harvesting crops, rescuing people, and extinguishing large fires. This typically involves intelligent electronics. Even autonomous, self-driving specialty vehicles become reality in many application areas. dSPACE solutions help you develop, test, and optimize these vehicles and their equipment. Contact us – we look forward to being your development partner. info@dspaceinc.com

YO U R PA R T N E R I N S I M U L AT I O N A N D VA L I D AT I O N

Ready, set, done. Preparation, simulation and validation made fast and easy. SIMPHERA. Enter simpliCity.

Welcome to SIMPHERA. Enter a whole new world and discover the latest web-based solution to bring forward autonomous driving. Experience seamless testing on SIL and HIL platforms. Or in other words: Enter simpliCity. simphera.dspace.com

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648234

Pressure to Reduce Emissions and Labor Shortages are Two Biggest Drivers of Change

responses provided by Frédéric Michelland, CEO, Poclain Hydraulics

Reducing emissions and overcoming labor shortages will push the heavy equipment industry to find innovative technologies and solutions. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? Diesel engines are definitely no longer in “fashion.” Regardless, they are very widely used by heavy machinery. The progressive movement away from diesel fuels to other energies does not necessarily mean the complete abandon of the diesel engine. There is, however, a powerful market trend towards zero-emission vehicles and machines (cars, buses, trucks, off-highway machines, etc.). To become zero emission, the vehicle and machine architectures will have to evolve. Looking at the off-highway market, it is highly fragmented regarding the variety of applications and duty cycles. The solutions used for the architectures will be very different depending on the applications and duty cycles. Consequently, part of the off-highway market will keep using internal combustion engines (ICE) but not [exclusively]; internal combustion engines will have to cohabitate with other technologies (hybrid, electric). What alternative fuels do you foresee entering the heavy equipment industry in the next 5-10 years? We are seeing the initiatives to develop alternative fuels for use with ICE grow more than ever. Many experiments and trials are underway with fossil-free fuels, and more are still to come. The mix of this technology alongside hydrogen is at the heart of many initiatives, and some that have

OEM Off-Highway | OCTOBER 2021

reached a mature stage and [are] promising for smooth industrial deployment as the thermal engine is an established and well mastered technology. Internal combustion engines will move more and more toward biofuels. But these fuels will be complimented by other sources: Hybrid (downsized diesel engine + electric system) and full electric (battery and fuel cell). These alternatives will make it possible to achieve the right energy mix and the only possible option for our future and that of the planet. Betting everything on one technology does not make sense, especially for heavy equipment vehicles or tools. How will electrification—or other alternative energy/power systems— continue to advance in the heavy equipment industry? Electric vehicle (EV) adoption will highly depend on end-use applications driven by key technical and economical aspects: improvements in battery energy density to reach requested vehicle range, charging infrastructure availability and performance, regulatory pressure, and machine total cost of ownership. The EV will have to meet regulatory requirements, properly perform its intended job and enable a profitable business model for the owners.

Challenges & Opportunities What are the biggest challenges facing the industry currently, or do you see the industry facing in the coming years? The biggest challenges are well known: supply chain tensions, inflation

risks (specifically commodity prices like steel) and labor shortage. These three challenges will most likely grow in the coming months, even if we expect the situation to ease in 2022. The main concern that remains is really the labor shortage, as it seems to be a structural change. Many people are reconsidering their professional careers and leaving the industry. Attracting talent is becoming the most important success factor. Over time, running 24/7 is not a long-term solution. Robotization could be an answer in some cases. COVID remains a challenge. It is not over, and is not only disturbing logistics, but also overall travel and exchange the world over. What do you think will be the biggest change to occur in the heavy-duty vehicle and equipment industries in the next decade? The two biggest drivers of change are pressure to reduce emissions and the labor shortage. This will push the industry to find innovative ways to reduce emissions and energy consumption, be it electrification, fuel cells or other technology to replace the combustion engine. The labor shortage will force OEMs to reconsider the interface between machine and driver pushing for improved comfort, automation and a stronger focus on the user experience. This will result in more autonomous machines and robots doing activities like spraying, digging and paving. |

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648047

PowerCombi PureSine Wave Inverters

Emissions Regulations Will Drive Electrification responses provided Diesel will continue to play by Joshua Israel, Development a key role in the off-highway Market Manager, HORIBA Automotive equipment industry, but emissions regulations will be a driver for further electrification.

Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? Diesel will play a large roll over the next two decades. The current set of regulations and government mandates will compel the industry to electrify where feasible, but diesel will remain vital in applications where electrification is not practical and/or cost effective. Recent forecasts of the CV (commercial vehicle) space predict that over 85% of new vehicles will rely on a traditional powertrain in 2030, and the number may be much higher than that for heavy off-highway equipment. What alternative fuels do you foresee entering the heavy equipment industry in the next 5-10 years? CNG (compressed natural gas) fueled engines have been a part of the heavy equipment industry for years due to abundant supply and stable, predictable costs. The next decade may see the advent of hydrogen combustion engines in the heavy equipment sector, as it allows for decarbonization without the range anxiety, recharging, and weight issues typically associated with battery electric solutions. How will electrification—or other alternative energy/power systems—continue to advance in the heavy equipment industry? There is a wide range of predictions, but the true indicators that will signal increased adoption of alternative power systems are strict government regulations on greenhouse gases and investment in infrastructure. Without at least one of those pieces in place, it is hard to imagine that electrification will be widespread in the near-to-medium term. |

Enabling users to run AC powered tools and accessories from the vehicle battery, PowerCombi inverters offer grid-quality AC power and battery charging in one low-profile design. • Complete recharging and monitoring with no risk of battery damage from overcharging • Inverter/charge mode, power sharing mode, and support mode available

For stocking information call 800-328-2724 or visit www.waytekwire.com/mastervolt

Head to the Web Visit www.oemoffhighway.com/21551386 to listen to our podcast interview with Joshua Israel about the potential for new small off-road engine emissions regulations.

OEM Off-Highway | OCTOBER 2021

from Mastervolt

When cost savings create vulnerable supply chains

n ordinary times, businesses, rightly, review operations to identify efficiencies and cost savings in order to remain competitive in a globalized economy. Often this can be achieved through outsourcing supply to faraway territories due to their lower labour cost base – and for many years, across many industries, this model has proven fruitful. However, these are not ordinary times. Since the start of the global coronavirus pandemic, many businesses across multiple industries Advanced have witnessed how convoluted silicone vulnerable their supply hoses chains have become as an unintended consequence of this approach. James Dawson, part of the Michelin group, is a brand well established within the supply of hoses into the Specialist reinforced complex organic hoses

construction sector, and has been utilizing its reputation for reliability to make major inroads into the agriculture, and mining sectors. Having been around since 1865, the business has seen and survived the turmoil of the Spanish

OEM Off-Highway | OCTOBER 2021

flu and two world wars. As global economies made the first tentative steps out of lockdowns, the consequences of cost driven supply chains became apparent and James Dawson found itself at the heart of what turned out to be recovery efforts. “It seemed to be a real moment of reassessment for a number of OEMs within the construction sector in particular”, says Bill Cox, Category Leader for Hose at James Dawson. “I think many OEMs have understandably felt they’ve had to drive down costs to stay competitive, without realizing how this was exposing them to vulnerability in their supply chains and, of course, COVID suddenly exposed that in a very immediate and impactful way.” During the height of the pandemic James Dawson experienced an increase in enquiries from customers based in the western hemisphere who were looking for alternative suppliers urgently. “We had a customer who, under the price pressure they were facing, had moved their hose supply to the APAC region. However, now they were finding that due to additional COVID restrictions and infections impacting the workforce and freight, their hose parts were critically low.” Explains Bill. “This particular customer is an exclusive supplier to one of the major global construction OEMs and they were telling us they were two weeks away from running out of parts!” As a result of receiving many similar calls, the James Dawson team set up a dedicated cross-functional Critical Supply Taskforce (CST) to support manufacturers in similar positions. Through daily calls with the internal

High performance silicone range

team, as well as customers, they were able to make the tools, manufacture the parts and ship them before the customer ran out. “It’s been a very full-on experience, but really rewarding too”, Bill recalls. “At James Dawson, we genuinely do pride ourselves on being able to deliver for our customers and in a way its flattering that the OEMs have turned to us in their moment of crisis so we were resolute about doing whatever it takes to come through for them.” Bill Cox, Category Leader Owing to the for Hose at James Dawson effectiveness of the CST over this highly challenging period for the industry, James Dawson received the CAT supplier SQEP award for exceptional annual on time performance. Shortly after, both Cummins and Perkin also formally recognized the critical support they had received over the same peak COVID period. “I think we’ve got a pretty solid reputation for the quality of our products, but this period of exceptional challenges has enabled us to show our customers that our dedication to quality and reliability extends beyond our products, through to supply and every aspect of customer care”, concludes Bill. | To find out more about James Dawson’s range of silicone and organic hoses, visit: www.james-dawson.com

0.003% WARRANTY CLAIMS IN 2020! Maximise uptime with market leading hose reliability for construction, mining and agriculture. sales@james-dawson.com

www.james-dawson.com

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648090

Continued Improvements in Diesel Engine Technology Will be Necessary

responses provided by (left to right) Brian Kreifels, Vice President OEM Sales North America, Jeff Hemphill, Chief Technical Officer, and Shoukat Ali Bhamani, Chief Information & Digital Officer, Schaeffler

The need for diesel engines will remain strong for some time, necessitating continued improvements to meet emissions regulations and efficiency gains. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? Kreifels: The continued need for diesel engines to power commercial equipment looks to remain quite strong, especially in the near to intermediate term. While there are some applications that can be more readily electrified, there are many more applications where the available onboard electric generation or storage capacities are simply insufficient at this time. As a result, it will be necessary to continue to improve diesel engine technology to meet legislative requirements and market expectations which will drive efficiency improvements, enhanced in-cylinder emissions controls, and reduced total cost of ownership (TCO). With regard to improved efficiency, future diesel engines will increasingly rely on technologies that minimize friction and thermal losses. Here we see opportunities for technologies such as next-generation rolling element bearings, low-friction coating solutions as well as waste-heat recovery that have yet to be fully exploited. Variable valve actuation strategies as well as active, controlled management of the engine and vehicle systems’ cooling circuits can deliver further engine efficiencies. With respect to cleaner emissions, “in-cylinder” technologies can reduce or even eliminate the need for external

OEM Off-Highway | OCTOBER 2021

aftertreatment devices while still achieving increasingly stringent overall emissions mandates. Indeed, many of the variable valvetrain technologies mentioned above can also be used to reduce in-cylinder emissions. In-cylinder solutions offer the inherent advantage of being able to eliminate the packaging and installation challenges posed by external aftertreatment devices. In addition, in-cylinder solutions offer better and more consistent emissions control over the engine’s entire lifecycle. What alternative fuels do you foresee entering the heavy equipment industry in the next 5-10 years? Hemphill: The U.S. is one of the few countries where all forms of transport collectively represent the largest source of CO2 emissions. This leads to continued pressure to reduce CO2 as well as other forms of emissions. Hydrogen is gaining momentum as a fuel with strong support from the federal government. This includes fuel cell powered vehicles as well as new efforts to burn hydrogen directly in combustion engines. At Schaeffler, we have experienced this momentum directly as we develop bipolar plates for fuel cells as well as subsystems like thermal management modules. Biodiesel remains a viable alternative as it can make use of existing infrastructure, though it still faces cost issues. CNG (compressed natural gas), meanwhile, has an attractive cost basis with natural gas prices remain-

ing low. However, this option would require a new infrastructure, and the investment has not yet justified itself. So, while a clear winner is not yet in sight, the industry is learning rapidly, and we are prepared to support the eventual leader.

Data, IoT & Connectivity What potential do you see in the use of artificial intelligence (AI) and augmented/virtual reality (AR/VR)—both for the design and manufacture of products as well as within equipment? Bhamani: At Schaeffler, we started our digital journey a few years ago, and we quickly started seeing the business benefits of AI and AR solutions in areas such as • AI visual inspection to improve work center performance • digital asset tracking and building digital data as “asset” to develop AI • VR-based remote services (e.g., customer support, factory maintenance) • condition monitoring to minimize downtime/increase machine run time. Earlier this year, Schaeffler launched its OPTIME condition monitoring solution for rotating machines. Data collected from this innovation could be further analyzed to provide artificial intelligence. The future development and implementation of AI and AR/VR will be crucial to building autonomous factories, supply chains and vehicles. |

Kraft Fluid Systems specializes in developing and supplying customized system solutions that optimize performance, reliability, and cost to meet the rigorous requirements of our mobile

equipment OEM clients. We focus on industries such as construction, work truck, mining, agriculture, forestry, material handling, defense, oil & gas, turf care, and specialty equipment. Kraft has been a Danfoss Power Solutions authorized build, sales, and service center for 40 years. The company sells and services Danfoss products throughout 11 states including Wisconsin, Michigan, Indiana, Pennsylvania, Ohio, Kentucky, West Virginia, New Jersey, Maryland, Connecticut, and Delaware.

components, power transmission equipment, electric drive technologies, and electronic controls for mobile OEM integrated solutions. For more information, visit www.kraftfluid.com or call (800) 257-1155.

Kraft Fluid Systems is the leading industrial distributor of hydraulic equipment and electric drive solutions in the Midwest US. With more than 45 years of experience, Kraft is the preferred distributor when seeking hydraulic

100% Employee Owned

Authorized Build, Sales, and Service Center Power Solutions Premier Partner

Mobile Hydraulic Pumps, Motors, Valves, and Electronic Controls Serving Wisconsin, Michigan, Indiana, Pennsylvania, Ohio, Kentucky, West Virginia, New Jersey, Maryland, Connecticut, and Delaware

(800) 257-1155 • www.kraftfluid.com OEM Off-Highway | OCTOBER 2021

One solution – many possibilities for OEMs The many functionalities of the OEM Service Cloud solution offer additional features such as FOTA or online maintenance to develop new business models and thereby differentiate the service offering from the competition. This enables OEMs to improve the customer service experience and proximity and align their service with current market needs while saving costs. Download the free-available OEM OEM Service Cloud booklet and learn more

Service excellence with less operational spend Machine downtime is often an expensive scenario for machine owners, not only resulting in lost productivity and negative impacts on other operations, but also contributing to high service and repair costs. For OEMs, service trips to the customer’s site mean high travel costs and personnel costs tied to the assignment. If machine diagnostics and solution approaches have to be carried out on-site by the service technician, this leads to unnecessary long downtimes and dissatisfied customers.

Remote functionality for the service software Proemion’s Service Cloud solution provides OEMs with a dedicated system for remote monitoring, diagnostics, and interaction with their customers’ machines worldwide. At the same time, OEMs can continue to use their familiar service software with no additional

OEM Off-Highway | OCTOBER 2021

training required and, if desired, can also use Proemion’s in-house tools. Proemion offers this solution for CANbased service software from different controller manufacturers, such as Danfoss PLUS+1® and BODAS-service. The advantages for OEMs are obvious: faster response times, higher service quality, and lower after-sales costs.

Remote Services saves 2030% on travel costs Service technicians no longer have to travel to the machine location thanks to the remote functionality but can remotely diagnose the machine from their desk and obtain a transparent picture in advance. As a result, the often long waiting times for service technicians to arrive are a thing of the past. What’s more, if an on-site repair is necessary after all, the service technician will deliver the right spare part. Optimally, problems can already be solved remotely by changing the machine parameters.

About Proemion Proemion is a leading provider of CAN bus-based telematics solutions. As a long-standing partner of leading off-highway OEMs, Proemion offers a wide range of products and services for bi-directional connectivity and data exchange between users and mobile machines. With own hardware products, a cloud-based DataPlatform, and a highly customizable web portal, Proemion supports OEMs in digitizing vehicles and processes. Proemion | Email info@proemion.com | www.proemion.com

GLOBAL

Service excellence with less spend When machine owners experience downtime with machines, it translates directly into lost productivity and lost revenue. By implementing remote functionality for your service using our telematicbased OEM Service Cloud solution, you‘ll get their machines up and running again quickly and save service costs. Improve your service processes and make your service ready to meet the increasing expectations of the market.

Download the free-available OEM Service Cloud booklet and learn more

Proemion | Phone: +1 937 558-2211 | Fax: +1 937 641-8787 | E-mail: info-dayton@proemion.com | www.proemion.com

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21659863

A Blend of Solutions are Necessary for Climate Neutrality

responses provided by Martin Bjuve, President, Volvo Penta of the Americas

A mix of traditional, hybrid and fully-electric options will be required to help the heavy equipment industry meet global emissions reduction targets. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? Diesel engines will continue to maintain a significant presence for a considerable time as we look ahead, both in conventional and hybrid applications. However, we believe that over time, the usage of the technology will become more application based and will run in parallel with the emergence of more zero-emissions solutions. A blend of traditional, hybrid and fully-electric solutions will be necessary to usher in the full shift to climate neutrality. The industry can expect to see continued improvements when it comes to efficiency of today’s diesel technology. Take for example Tier 4 Final systems, which offer a combination of high power, low fuel consumption and low emissions that was unthinkable just a short time ago. In comparison to previous emissions standards, Tier 4 compliant engines reduce emissions by more than 95% in some off-road applications. Volvo Penta is firmly committed to reducing emissions through both existing and emerging technologies. How will electrification—or other alternative energy/power systems— continue to advance in the heavy equipment industry? While fully-electric solutions like terminal tractors are already on the market, it’s important to remember that they are a first- or second-generation

OEM Off-Highway | OCTOBER 2021

product. When it comes to transformation, OEMs are recognizing the value in turning to an established manufacturing partner who will continuously invest in development, and understand the critical elements of safety, reliability and aftermarket support. Our focus in this area is not only related to technology development, but the integration and operation of these new solutions as well. Our recently announced collaboration with TICO is a good example of this strategy in practice. Earlier this year, we shared plans to jointly introduce an emissions-free, electric terminal tractor. This collaboration allows us to not only take a full system approach when providing a reliable electric driveline, but also offer deep technical expertise throughout the entire design and development stages. This end-to-end partnership will be the cornerstone of our expansion into electromobility within the U.S. market.

Challenges & Opportunities What are the biggest challenges facing the industry currently, or do you see the industry facing in the coming years? To start on a positive note, nearly every segment we service, from offroad applications to power generation, is experiencing very strong demand globally. But that growth is being challenged by the turbulent supply chain. The main bottleneck right now is access to components, including semiconductors. We find that transparency and close communication is best for

weathering these challenging dynamics. Tapping into bigger and broader networks—as we’ve done being a part of the larger Volvo Group—has proven to be beneficial in identifying resources with suppliers and to help maintain production. What are some of the biggest opportunities you see in the industry? Despite supply chain challenges, there remains a lot of revenue opportunity in the industry. We’re seeing an uptick in orders and deliveries across a variety of segments, including materials handling, construction, power generation and others. We expect market demand to remain steady over the next year barring any major changes. We strongly believe that the focus around climate change will intensify, and that the demand for more sustainable solutions will accelerate. There is opportunity ahead for corporations who take stronger action in their sustainability commitments and deliver on growing demands for more environmentally-sound applications and operations. New electric and hybrid technologies continue to enter the marketplace, while availability of loans and incentives for sustainable solution investments also increases. |

Read More Online Find extended and online-only interviews on our website!

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648122

Next Generation Equipment Offer Opportunities for New Engineered Access Solutions

responses provided by James Stroud, Business Development Manager, Southco, Inc.

As automation and other technologies advance, equipment will still need to be outfitted with components that can provide reliable security in demanding off-road conditions. Challenges & Opportunities What are the biggest challenges facing the industry currently, or do you see the industry facing in the coming years? Supply chain challenges brought on by the COVID-19 pandemic will continue to affect production of off-highway vehicles now and into the future. Major global restrictions on air travel, including air freight, have compelled many suppliers to shift to other methods of transport such as ocean transport. Regardless of the chosen shipping method, they are having to choose between significant lead times or major cost impacts. Manufacturers face shortages of raw materials such as steel and plastics. In many cases, components widely used in off-highway equipment and typically produced in high volumes in one part of the world are still difficult and expensive to obtain. As with any unprecedented and sudden shift in demand for goods, original equipment manufacturers (OEMs) are rushing to increase production and deliver off-highway equipment to meet demand. In the construction market, the 2020 housing boom is contributing to significant growth as builders rush to build single family homes to meet the demands of new homeowners. Increasing investments in the construction of roads, highways, bridges and expressways due to growing population and urbanization is also driving the need for construction equipment. [1] With commodity prices rising due to shortages in labor and [1] https://www.grandviewresearch.com/industry-analysis/ construction-equipment-rental-market [2] https://www. mordorintelligence.com/industry-reports/constructionequipment-rental-market

food availability, the agricultural market is growing at an exponential rate as well. As a result, farmers are buying more equipment to increase their harvests. Off-highway equipment manufacturers can ensure they are able to meet this demand by working with suppliers that have a global footprint, with a localized manufacturing approach. Southco for instance, has multiple production plants in key locations around the world. This means we can respond to changing situations without impacting customer orders, lead times or product quality no matter where they produce their equipment. Each plant has the same primary equipment with similar tooling set ups, production flows and procedures, whether they are located in the U.S., Europe, India or China. This enables us to move assembly equipment and production processes close to where our customers produce their equipment, which allows us to control labor, materials and logistics costs, avoid tariffs and utilize our global supply chain. This global footprint with localized, configurable manufacturing can be valuable to off-highway equipment manufacturers because it provides critical supply chain security, especially when major disruptive events like COVID-19 occur. Are there any technologies or trends which you are currently excited about in the heavy-duty vehicle industry, or most looking forward to seeing in the coming years? Next generation equipment trends, like autonomous vehicles and drones,

offer many opportunities for new engineered access solutions that can integrate with these new technologies. There is growing use of autonomous and semi-autonomous equipment in multiple off-highway applications, especially agriculture, mining and construction vehicles. Regardless of their level of autonomy, these vehicles will need to be outfitted with components that can provide reliable security in demanding off-road conditions. Electronic latching can be used to limit access, such as granting the operator access only to the cab and ignition, while allowing maintenance personnel full access to engine hoods and toolboxes. Electronic access solutions that integrate Bluetooth technology with electronic locks can simplify equipment access and key management by allowing an operator’s smartphone to act as a key. This can also be useful for the heavy-duty equipment rental market because it allows equipment rental companies to track and control who is using what equipment, when and for how long. The construction equipment rental market was valued at $103 billion in 2020, and it is expected to reach $137 billion by 2026[2], meaning that there is way more equipment that needs to be managed and secured by operators than ever before. Adding electronic access control ensures that only those operators who have authorization and training to operate this valuable equipment can access it. |

OEM Off-Highway | OCTOBER 2021

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648060

Automation Will Continue to Drive Efficiency New capabilities built into automation systems will help to better utilize and improve processes in the industry. Automation & Smart Systems How has automation helped the heavy vehicle and equipment industries become more productive? When you examine the last 20 years of automation in the construction industry, you see the ever-increasing capabilities of systems that continue to provide significant improvements in speed, accuracy, integration with machines, and more intuitive user interfaces. What started with using a laser to confirm a flat planer surface is now utilizing multi-constellation GPS for multifaceted 3D models with up to millimeter level accuracies. These systems have successfully addressed the industry’s challenges in finding skilled labor, driving faster speed to completion for job sites to remain on demanding timelines, and utilizing both existing and new equipment more effectively. In addition, these systems help reduce costs through fuel savings from more effective machine usage, increased job site safety, reduced emissions, and reduced consumption of products due to being on grade every single time. These advantages are seen in setting up job sites, grading, paving (asphalt and concrete), and allowing full BIM qualified jobs. This creates an accurate 3D model of the completed job, whether it is a high-rise building, sewage treatment plant, or interstate

OEM Off-Highway | OCTOBER 2021

highway, for long-term support during its expected life span. What further benefits will automation bring to the heavy vehicle and equipment industries? Automation will continue to drive efficiency with new capabilities to better utilize and improve processes in the industry. The world faces a challenge with significant infrastructure needs and not enough resources to address the demands. Cutting costs for development while improving the end product will help narrow the gap the global market faces. The industry-wide shortage of experienced operators continues to be a challenge. Automation and machine control systems such as the Topcon X-53x Automatic Excavator allow less seasoned operators to gain capabilities that would take years of on-the-job experience to be equaled. With its intuitive user interface, this system helps operators become familiar with the interface and experts to quickly provide value earlier than previously through on-the-job experience. This benefits both the operator and employer by creating high-value personnel to keep jobs on time and on grade. How has the development and use of smart systems evolved, and what further impacts will they have on the industry? When you look at the progress in pieces, 5 years ago, 10 years ago, and 20 years ago, the level of performance continues to accelerate. Through cost-effective IMUs (inertial measurement units), GNSS, displays, and controllers, contractors are getting rapid ROI for their newest investments

responses provided by Tom Hansen Senior Director, Global OEM Development and Sales, Topcon Positioning Systems

with performance and speed not imagined 20 years ago. Adding to this is the potential for greater levels of safety and communication in real-time of progress and needs on a specific job site. The industry will transform the concept of on-site manufacturing. This trend will continue as the market continues to move in the direction of automation and autonomy. What role will telematics continue to play in the heavy vehicle and equipment industry? Telematics have played an important role in getting to this point, but I do not feel they have been fully utilized by the industry. Topcon has products such as Sitelink that provide real-time updates for job sites for a multi-national or local contractor. The adoption of this technology using telematics as a pipe, and adding machine health and service requirements to the mix, will create a level of efficiency and reduce unexpected downtime to near zero. That future is available now with current products like Sitelink. Continued adoption will drive greater information and AI (artificial intelligence) that helps the contractor sort through the noise to determine the best real-time decisions to make. |

Head to the Web Visit www.oemoffhighway. com/21723060 to watch our video interview with Tom Hansen for more insights on the potential for automation in the off-highway equipment industries.

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648086

Opportunities Exist for Continued Advancements in Diesel Engines

responses provided by Nick Block, Director, Global Marketing & Sales, John Deere Power Systems

New technologies and control solutions will provide continued improvements in performance and emissions reduction capabilities. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? There are still many opportunities for continued advancements in diesel engines. From the technology side, we’ve leveraged new catalyst technologies and emissions control calibrations to enable the downsizing of aftertreatment. Our newest aftertreatment solutions deliver greater package flexibility and offer easier installation while providing significant reductions in size and weight. We will continue to focus on improving overall package size, reducing overall engine weight and integrating new generations of electronic control systems. One trend that will continue to evolve in the next few years is less reliance on physical sensors. This is because engine control units continue to become more advanced and enable greater engine control and diagnostics performance. Furthermore, engines will become smarter and more capable, not only in terms of lower emissions or higher power, but by being more reliable to run in the way applications demand. What alternative fuels do you foresee entering the heavy equipment industry in the next 5-10 years? We believe biodiesel and renewable diesel fuel to be the most viable alternatives to diesel fuel for heavy-duty off-highway engines. John Deere engines operate efficiently using ultra-low sulfur diesel as well as biodiesel

OEM Off-Highway | OCTOBER 2021

blends. It’s the right thing to do from a long-term economic standpoint, as well as environmental, energy-security and rural-development standpoints. The primary advantages of both biodiesel and renewable diesel are their renewability. As renewable energy sources, biodiesel and renewable diesel fuel can help reduce dependence on petroleum imports. Biodiesel (B100) is nontoxic, biodegradable and suitable for sensitive environments. In addition, we are exploring ethanol as another potential renewable fuel option for our off-highway customers. Ethanol enables up to a 40% reduction in net CO2 emissions from heavy-duty diesel engines. It is also widely available and can offer a high-efficiency, liquid alternative fuel option. How will electrification—or other alternative energy/power systems— continue to advance in the heavy equipment industry? John Deere is well-versed in the integration of electrical generators and/or motors, power electronics, and mechanical drivetrain interfaces. With more than 2 million operating hours of proven performance in the field, John Deere electric drivetrain components are available in multiple configurations to help OEMs implement electric and hybrid drive systems in their off-highway applications. Implementing alternative power systems like drivetrain and electric solutions in off-highway equipment will depend on being able to optimize an overall power solution—balancing mechanical, hydraulic and electric

power systems and cost. That is why we’ve focused on providing scalable, flexible and modular solutions to generate and deliver the variety of power solutions needed in off-highway applications.

Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years? The John Deere Smart Industrial strategy is designed to unlock new value for customers and help them become more profitable and sustainable, while simultaneously revolutionizing the agriculture and construction industries through the rapid introduction of new technologies. As a part of this strategy, we utilize IoT and machine performance data to develop new solutions, particularly for our dealers and customers through John Deere Connected Support™. The technology in the Connected Support suite of tools has empowered a shift from reacting to problems after they occur in the field to a proactive approach of anticipating and preventing machine downtime. |

Head to the Web Visit www.oemoffhighway. com/21723062 to watch our video interview with Nick Block for more insights on engine and heavy equipment industry trends.

The power behind it all.™ 4LE2X

Isuzu Engines and Power Units offer clean, reliable power, Tier 4 and Stage V emissions to perform in all kinds of environments. From the 4LE2, a proven workhorse in thousands of critical applications. To our 4HV1 Dual-Fuel Power Unit that can eliminate downtime when changing an alternative fuel on location. To our new 4JJ1 open gen-set Power Units that are 90% validated, saving OEM and Distributors design engineering time and resources.

F/F Engine

NEw 4JJ1X 1800 RPM Tier 4 Genset Ready Power Units

4HV1 Dual-fuel Natural Gas / Propane

Contact your local Isuzu Distributor or call us direct at 734.582.9470.

www.IsuzuEngines.com www.IsuzuREDTech.com

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648029

Diesel has a Long Life in Off-Highway Applications The duty cycles of off-highway equipment, coupled with the remote operational nature of many machines, will make diesel difficult to replace. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? In the off-highway space diesel still has a long runway. Duty cycles of off-highway equipment, coupled with the remote operational nature of many machines, will make diesel difficult to replace. We expect to see trends that push the power density envelope of diesel engines to enable further downsizing, trends for cleaner emissions that push the technology, and an increased focus on things like renewable fuels. What alternative fuels do you foresee entering the heavy equipment industry in the next 5-10 years? Starting with diesel IC (internal combustion) engines, it is possible to see increased usage of biofuels such as HVO100; pockets of this are happening already today. Currently, some of the Cummins Off-Highway engines are approved for B20 diesel and paraffinic fuel. When you talk compact construction, while still limited by infrastructure availability outside certain settings, there has been a trend for electrification. Adoption rates in the next 5-10 years, again outside some specific market settings, are likely to remain low with the rate decreasing as you increase in equipment size. Hydrogen is also emerging as an alternative fuel of interest, either in fuel cell or spark ignited form. Similar to electrification, the hydrogen infrastructure will also take time to develop. Packaging hydrogen on a machine also requires a different process than installing a

OEM Off-Highway | OCTOBER 2021

diesel engine and it will take time to ensure that is done well. Also similar to electrification there will probably be pockets that adopt, highlighting the fragmented nature and diversity of the off-highway market. Metal machinery is not easily redesigned, particularly thick metal like what is found on construction equipment. It is likely that OEMs will delay the investment of full machine redesign in many cases until the adoption picture becomes clearer, meaning there could be a period of time before optimized alternative power chassis are available. What new emissions regulations do you see on the horizon, and how might they impact future product development? These vary by region of the world. Emission changes that are playing out in the short term include the recent India BSIV rollout for wheeled machinery, expected to follow with tracked equipment legislation and eventually BSV sometime mid-decade. China CSIV emissions have firmed at year end 2022; CSV emissions are looking like a later decade potential at this stage. Variations in emissions regulations for major markets mean bespoke investments for these key areas. For traditional lead emission markets like the U.S. and European regions, it is looking like later in the decade before those would be expected. Exactly what these future regulations will look like is speculative, but Cummins is participating in in-use testing programs to provide real-world results to legislators. Results received from industry players is expected to help shape what

responses submitted by Jeremy Harsin, Global Construction Market Director, Cummins Inc.

future regulations like EU Stage VI will look like.

Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years? Driving informed decisions must be a primary outcome. Decisions regarding operations, repairs, utilization, etc. need to be realized to maximize the value of connectivity. When paired with well thought out aftermarket practices, even basic connectivity data can be leveraged to make big improvements to machine uptime. Contrary to on-highway equipment, when a construction machine breaks the field technician travels to the machine. Machines can be many hours from the nearest repair location so reduction of redundant travel allows technicians to be more efficient and shops to optimize their earning potential. Currently, these technicians often leave with minimal information about the actual problem; in the future, the technician should leave the shop equipped with appropriate parts and tooling to complete the repair. This is just scratching the surface of how connectivity data can be leveraged. As the industry evolves and you move into more proprietary data transfer things like prognostics come into focus. |

Read More Online Find extended and online-only interviews on our website!

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648062

Flexibility and Adaptability are key to Weathering Supply Chain Disruptions Rethinking how to forecast and being prepared to flex, adapt, and evolve will help manufacturers navigate ongoing supply chain challenges. Supply Chain Disruptions What industry challenges have supply chain disruptions brought to light, and what can the industry as a whole do to overcome them? In a short-term context, the best advice we can give to manufacturers is in the area of coping with the supply chain situation and arming their suppliers to be as equipped as possible to deliver success for them. In this area, forecasting is crucial. Right now many assemblies we manufacture have significant, sole-sourced, content that is running lead times of 52-72 weeks.

Orders we’re placing for late 2022 (as of August 2021) are being returned from our suppliers with 2023 commitment dates for delivery. As a result, we’re driving significant order volume and commitments for components well into calendar year 2023. Forecasts that used to be only directional for long-term capacity planning are now material for component ordering and security—so get long term (at least 2-year month by month, ideally 3-year) forecasts to your electronic suppliers. Flexibility is going to be a key trait for all manufacturers to effectively

responses provided by David Batcheller, President, Appareo

navigate the supply chain situation over the next 18 months. Be prepared to flex, adapt, and evolve. |

Head to the Web Visit www.oemoffhighway.com/21723061 to watch our video interview with David Batcheller for his insights on the potential of AI and augmented reality, as well as what challenges and opportunities lie ahead for the heavy equipment industries.

OEM Off-Highway | OCTOBER 2021

S TAT E O F T H E I N D U S T RY

READ THE FULL INTERVIEW ONLINE AT oemoffhighway.com/21648049

Business can be a Driver of Amazingly Creative Innovations

responses provided by (left to right) Mike Hartoonian, President & CEO Hatz Diesel of North America, Inc., Dr. Maren Hellwig, Head of Digital Business Development, Motorenfabrik Hatz GmbH & Co. KG, and Dr. Sebastian Wohlgemuth, Director R&D, Motorenfabrik Hatz GmbH & Co. KG

Advancements in internal combustion engines and alternative energy solutions will be determined by industry needs and creative engineering. Diesel, Electric & Other Power Alternatives How, if at all, do you see the role of diesel engines evolving in the coming years? Wohlgemuth: Engines will remain important for applications with high power demand/wide operation range, but only with synthetic fuel (decarbonization); equipment with low power demand and limited operation range won’t be driven by a diesel engine in the future, however, engines will contribute to the power supply of heavy-duty equipment. Hartoonian: Furthermore, I would say confidently that IC (internal combustion) engines in general and diesel engines specifically, have many years of service ahead of them, particularly in commercial equipment applications. Of course, there will be innovation and as we see throughout history, left to its own inspirations business can be the driver of amazingly creative innovations. Engine manufacturers will continue to develop new and more efficient designs, but beyond that I think the relationship with equipment manufacturers to realize additional efficiencies and downsize engine size seems to make sense, as does the use of alternative fuels. I do expect that there will be an increased market share of fully-electric equipment. However, I further expect

OEM Off-Highway | OCTOBER 2021

that the largest increase in market share, especially with commercial equipment, we will see will be in hybrids. How will electrification—or other alternative energy/power systems— continue to advance in the heavy equipment industry? Wohlgemuth: Electrification and other alternative power systems will have a massive impact on the heavy equipment industry. There will be a diversity of technologies in the future; future equipment will have the power system/energy system which is best suited for the particular use case. What new emissions regulations do you see on the horizon, and how might they impact future product development? Wohlgemuth: More strict emission regulations around 2023…2026 (depending on region and power class). Engines of the lower power classes will get more expensive due to the regulations which will lead to a smaller gap between expensive new technologies (getting cheaper due to future development and scale effects) and diesel engines getting more expensive due to exhaust gas aftertreatment requirements. Very strict emission regulations could lead to a change in technology not only caused by increasing costs but also by emission limits impossible to reach.

Data, IoT & Connectivity What will be the best use cases for the Internet of Things (IoT) and data in the coming years? Hellwig: In the coming years, four types of use cases will benefit from the possibilities of connectivity. First, those that are installed in hard-toreach regions. Second, those that can create additional value for customers through automation. Third, those that simplify or optimize customer business processes through additional information. Finally, those who want to plan and carry out their maintenance in a usage-based, predictive, and optimal manner. What potential do you see in the use of artificial intelligence (AI) and augmented/virtual reality (AR/VR)—both for the design and manufacture of products as well as within equipment? Hellwig: AI will support manufacturers to develop optimized smart (predictive/prescriptive) maintenance. Augmented content will support technical trainings. In combination with connectivity (via phone and/or with additional machine and sensor data) remote help in maintenance and repair situations is possible. Technical personnel on site, which do not have enough knowledge to solve critical situations on their own can be optimally supported from anywhere in the world. |

AD INDEX

Advertiser........................Page # B&R Industrial Automation Corp...............................2, 52 Cummins Engine Company Inc................................ 18-19 Curtis Instruments, Inc............................................ 22-23 dSPACE.................................................................... 30-31 Eberspacher Climate Control Systems.......................9, 47 ENM Company.............................................................. 49 FPT Industrial...........................................................12-13 Isuzu Motors America................................................... 45 James Dawson & Son Ltd........................................34-35 Kraft Fluid Systems...................................................... 37 Morris Coupling- Grand Bending.................................. 51 Nokian Tyres................................................................... 3 Proemion................................................................ 38-39 SIKO Products Inc......................................................... 21 SPAL USA...................................................................... 43 Volvo Penta of the Americas.................................... 26-27 Waytek....................................................................29, 33 Webasto Thermo & Comfort North America, Inc............ 7

LCD BATTERY INDICATOR PT33 SERIES

ENM’s PT33A1 series compact meter with various functions and alert systems is ideal for customers to get the most relevant information from their battery system. The unit has a built in hour meter and service timer, a battery level monitor, and a voltage monitor all designed to gather relevant information about your battery in an intuitive manner. MADE IN THE USA

E-MAIL:

customerservice@enmco.com TOLL FREE: 888-372-0465

www. enmco.com

OEM Off-Highway | OCTOBER 2021

OFF-HIGHWAY HEROES oemoffhighway.com/21710420

CABLE CONTROL for Tractor-Drawn Equipment LeTourneau’s Power Control Unit utilized wire rope and enabled control of two devices as a means of improving performance of dozers and other heavy machinery. by Thomas Berry, Archivist, Historical Construction Equipment Association

1920s, he found this technology unsatismade it possible to operate two defactory. Despite its relative convenience vices, such as a dozer and ripper, and and efficiency, the motors were too tractors could be equipped with front slow. Something better was needed, and rear units to operate both a dozer and Mr. R. G. once again had the idea. and scraper. In 1928, he introduced While positive down pressure was the Power Control Unit. It impossible with wire rope control, that was an enclosed winch, disadvantage was more than overcome driven from the tractor’s by faster operation. But that speed rear power take-off. A wire increase was not without restrictions. rope was attached to the Just as on cable-operated excavators, device being operated, rope had to be paid out carefully, and was wound in or out and if the device being lowered were to control it. A dozer redropped in free-fall the rope could quired only a single drum, become snarled or kinked. If the winch but the scraper’s complexwas not disengaged, damage could ocity made a double-drum cur as the rope kept pulling the device unit necessary. against resistance. Wire rope also had The Power Control Unit its own set of maintenance needs to and its competitors went monitor normal wear and damage. on to power other maWhile LeTourneau went on to marchinery, including “Buggy” ket Tournarope-branded wire rope, positive-ejection bottom these issues with wire rope led the A LeTourneau Double-Drum Power Control Unit enables this Cat D7 to operate both a dozer and a pull ripper. The scene is a dump wagons that slid the industry in general to accept hydrauplacer gold mine operated by Parker Brothers Corporation and body back from the frame lics as that technology became more Last Chance Gulch, near Helena, MT. to dump; pull rippers; practical, and LeTourneau to return to scraper that could be controlled from towed cranes; and even shovels, backelectric power in very large ways after the towing tractor, the largest scraper hoes, draglines and cranes mounted World War II.| of the early 20th Century, and the first to the tractor. The double-drum unit motor scraper. In addition, he was also an early designer of dozer blades for The Historical Construction Equipment Association (HCEA) is a 501(c)3 non-profit organization dedicated crawler tractors. to preserving the history of the construction, dredging and surface mining equipment industries. With over 3,800 members in over a dozen countries, activities include publication of a quarterly educational LeTourneau’s early dozers and scrapmagazine, Equipment Echoes, from which this article is adapted; operation of National Construction ers were operated by electric motors Equipment Museum and archives in Bowling Green, OH; and hosting an annual working exhibition of powered by an onboard generator, restored construction equipment. The 2022 show will be September 16-18 in Bowling Green, OH (learn more, 10598970). Annual individual memberships are $35.00 US within the USA and Canada, and $55.00 and the motors turned winches on the US elsewhere. HCEA seeks to develop relationships in the equipment manufacturing industry, and offers a scrapers or a rack-and-pinion mechcollege scholarship for engineering and construction management students. Information is available at anism on the dozers. But in the mid www.hcea.net, by calling 419-352-5616 or e-mailing info@hcea.net. Please reference Dept. OEM. CATERPILLAR, INC., IMAGE COURTESY OF DUANE PARSONS, HCEA ARCHIVES

s we have already seen, Robert G. LeTourneau was responsible for several major innovations in scraper design, including the first

OEM Off-Highway | OCTOBER 2021

Complete Custom & HighPerformance Exhaust System Components Grand Bending, a division of Morris Coupling, fabricates short and long radius bends for custom and high-performance exhaust systems for off-highway, asphalt paving, rail-mounted and airport service equipment, as well as on-highway buses and work trucks. An extensive product offering is available in aluminized carbon steel and stainless steel thin-wall tubing. Capabilities include compound bends, welded fabrications, expansion, swaging and beading. ISO9001: 2008 Certified.

Grand Bending 1092 West Atlanta Street, SE Bldg. 1200 Marietta, Georgia 30060 770-426-0734 grandbending.com sales@grandbending.com

Get All of Your Requirements Met

Grand Bending is the proven choice for custom and high-performance L_OH\Z[ Z`Z[LTZ MVY VɈ OPNO^H` asphalt paving, rail-mounted, and airport service equipment. Available in aluminized carbon steel HUK Z[HPUSLZZ Z[LLS [OPU ^HSS [\IPUN

Get complete information at GrandBending.com or call 770-426-0734.

Marietta, Georgia 30060 Ph: 770-426-0734 sales@grandbending.com ISO9001:2008 CERTIFIED

3x faster development. Experience . www.br-automation.com/mapp

< < < < <

More time for innovations Increased software quality Lower maintenance costs Reduced investment risk Increased machine availability

OEM Off-Highway October 2021

Articles inside

Appareo: David Batcheller, President

Hatz Diesel: Mike Hartoonian, President & CEO, Dr. Maren Hellwig, Head of Digital Business Development, and Dr. Sebastian Wohlgemuth, Director R&D

Cummins Inc.: Jeremy Harsin, Global Construction Market Director

Topcon Positioning Systems: Tom Hansen, Senior Director

John Deere Power Systems: Nick Block, Director, Global Marketing & Sales

Southco Inc.: James Stroud, Business Development Manager

Volvo Penta of the Americas: Martin Bjuve, President

Schaeffler: Brian Kreifels, Vice President OEM Sales North America, Jeff Hemphill, Chief Technical Officer, and Shoukat Ali Bhamani, Chief Information & Digital Officer

Poclain Hydraulics: Frédéric Michelland, CEO

HORIBA Automotive: Joshua Israel, Market Development Manager

Balluff: Will Healy III, Marketing Manager Americas, and Dennis Lewis, Managing Director, Sales and Marketing

Dana Inc.: Marcus King, Vice President of Off-Highway Global Sales, Business Development, Strategy, and Program Management

TTControl: Janosch Fauster, Director Application Development Center, and Markus Plankensteiner, Vice President Sales & Marketing

Association of Equipment Manufacturers: Dennis Slater

Proemion: Robert Michaelides Jr., COO

CASE Construction Equipment: Terry Dolan, Vice