Poclain Hydraulics: Frédéric Michelland, CEO

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

Reducing emissions and overcoming labor shortages will push the heavy equipment industry to find innovative technologies and solutions.

responses provided by Frédéric Michelland, CEO, Poclain Hydraulics

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 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. |