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