Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
With sales and operations at the ends of the earth, few companies are in a better position to take the pulse of the global economy and the resource sector in particular than Caterpillar.
The new line of “smart” equipment will be able to communicate, instantly, how it’s performing, and what might need fixing soon.
The world’s number one heavy equipment manufacturer has been hit hard by the decline in mining and construction – sales are down more than $20 billion from its peak just four years ago after a drop of over $8 billion last year.
But the company is pinning its hopes on its new line of “smart” equipment, which will be able to communicate, instantly, information on how it’s performing, and what might need fixing soon.
CAT’s digitalization strategy, dubbed “The Age of Smart Iron” was planned with the aim of improving productivity, efficiency, safety and profitability for customers, Doug Oberhelman, Chairman and CEO of Caterpillar said last month, when launching the plan at Bauma 2016, the world’s largest construction industry trade show.
Some of the main innovations include:
– LINK, a solution that captures vital performance and product health data and makes that data available on the web to guide decision-making.
– GRADE and COMPACT, two productivity solutions that help operators move material faster, more accurately and with fewer passes.
– PAYLOAD, an on-board system for trucks and loading tools that drives higher efficiency, shorter cycle times and lower cost per ton.
Caterpillar, which has taken dramatic cost-cutting measures in the last three years, invested $2 billion on developing its smart iron age machines.
The company says it expects to make “major announcements” related to the new equipment in early 2017.
Here’s a preview:
