ForConstructionPros.com

While still a relatively new advancement in the construction industry, asset management technology (telematics) is achieving rapid acceptance as more contractors experience the productivity gains and cost savings it can provide. And while once viewed as the domain of large fleet owners, the technology has since become more readily available, and practical, for even small fleets.

That said, it’s important to find a system that fits both your budget and your business objectives. A common mistake first-time users make is to base selection primarily on price. But while a $300 investment for basic hardware and $11/month for messaging can be tempting vs. an $800 system and $35/month messaging fees, you may find the more expensive package actually costs less when you break down what you get in return.

“It’s in how you derive benefit from it more than the initial price of the hardware,” says Bud Sims, director of OEM business development, Qualcomm Enterprise Services. “If you can’t use the data, it’s worth nothing. If it’s very valuable and helps you to run the business, then $35 a month may be inexpensive.

“A contractor should take his time and do his due diligence before purchasing to make sure he’s buying the right product,” he advises, “then develop business systems around it.”

The three basics

A basic asset management system typically lets you track hours of operation and equipment location, as well as set virtual boundaries (geofences). The core hardware consists of a small monitoring device — covertly positioned on the machine — that uses cellular and/or satellite technology to automatically transmit real-time operating and location data to a secure web site or, in some cases, directly to your business systems.