Southco Inc.: James Stroud, Business Development Manager

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 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. |