Balancing Cost, Efficiency, & ROI

Cost is one of the main struggle manufacturers face today when planning their projects and deciding on components. It is important to get at both ends of the table a component that is efficient enough to do the job well, and one that doesn’t exceed the budget.

The challenge of battery costs in electrification

As battery technology continues to improve and more efficient machines are developed longer run times are becoming possible. However, battery cost still remains one of the biggest challenges when it comes to fully electric machine adoption. Battery cost is a limiting factor for fully electric machines, making it important for OEMs to carefully balance the benefits of electrification with the overall cost of the machine.

While battery technology continues to evolve, future solutions such as sodium-ion batteries, solid-state batteries, and other emerging battery chemistries show promise. However, current lithium-ion batteries still provide the best power density, and newer technologies have not yet reached the level of commercial maturity needed for heavy construction equipment.

Choosing the right components for long-term value

This concept applies beyond electrification. When selecting components and designing new machines, OEMS must consider not just the initial cost of the component, but also its impact on efficiency, reliability, and the total cost of ownership.

One of the biggest areas where efficiency improvements can be overlooked is in choosing the right components for the machine system. Even though more efficient components are on the market and in many instances provide better performance, they are often passed over by OEMs due to their high costs. OEMs often face pressure to select lower-cost options to meet customer expectations for the final machine price.

The initial cost of the component is only one part of the overall value it provides. Selecting components made for improved efficiency can help support long-term reliability and reduce unnecessary losses within the system, all while improving the total cost of ownership over the life of the machine. As the market continues to expand, the goal is to improve performance and reliability while making these technologies more accessible.

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