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The question of TCO is becoming increasingly important to rental companies and equipment end users. Image: Adobe Stock

For almost as long, it has been understood that the higher purchase price of battery-electric equipment � sometimes significantly higher � has hindered widespread adoption within the industry.

Furthermore, the difficulty of calculating the return on investment (ROI) of on-site equipment has not helped sales, either to end users or rental companies.

Supporters of alternative power cite reductions in fuel consumption, as well as extended maintenance and servicing intervals, leading to enhanced uptime and overall productivity gains.

Yet, if a battery-electric machine costs more than twice that of its diesel or petrol equivalent, productivity gains risk becoming a moot point.

Conversely, a deeper understanding of the total cost of ownership (TCO), could give equipment buyers the confidence to explore a power technology with the potential to deliver both environmental and bottom-line benefits.

When a shift is not quite a shift�

Paul Bramhall, Director of Electrification and Rental for the EMEA region at power solutions company Briggs & Stratton, understands this all too well. He has been undertaking research into the comparative TCO of construction equipment as his company continues its strategic journey towards alternative power sources.

Bramhall believes the TCO challenge starts with businesses failing to fully understand the amount of work their machines are doing.

Benefits of battery-electric trowels in sensitive or urban environments include lower noise levels and zero local emissions

He says, “Today, people are making estimations on utilisation rates that are often inaccurate.

“More often than not, when I ask construction professionals how long a compact machine should operate for, the response will be either six or eight hours a day. This is almost always an overestimate. If the operator is using the machine for that long, then that operator does nothing else that day, which is rarely the case in my experience.

“On larger equipment, where there is data tracking, the data shows that machines are not operating for that long. For example, our research has shown that a one-tonne diesel dumper will only work for an average of 2.4 hours a day.�

Evidence from manufacturers of small handheld tools, which have been electrified and are able to gather usage data, confirms this.

Not an exact science

Another question mark within TCO is the residual value of small equipment.

“With a petrol-powered unit,� says Bramhall, “factors such as age and physical condition will influence the residual value as there is no way to determine the remaining life in the engine. With a battery, the first question to ask is ‘what is the capacity of the battery? How many charging cycles remain? Ten? One hundred? Five hundred?� All of this will impact the residual value, so finding the answers to these questions is important.�

The Vanguard 300 engine incorporates the fuel valve into the on/off switch, negating issues that can lead to unscheduled equipment downtime

One of the initial takeaways from Bramhall’s research may appear counter-intuitive � that the power source question is generally harder to answer for small equipment than for heavier machines.

Why is that? According to Bramhall, “For larger diesel or HVO powered equipment where there is data tracking on usage � for example a five- or ten-tonne loader � construction businesses will have a much better understanding of the equipment real-life usage from the integrated data logger.

“For smaller traditional ICE powered equipment � without integrated data tracking � it’s less of an exact science, with no precise figures showing how much or how little a machine is being used.

“Just because a machine is on-site for 24 hours a day, for a week or a month, does not mean it has worked for that period of time � and without clear tracking, it’s all guesswork.

“Also, in many cases, the person doing the calculation is not the operator but someone a step removed from the actual usage. This is all too often the case � you ask the owner or operator how long the machine has worked, and they will generally struggle to give an accurate answer as there is no data logger.�

Maximising uptime

Bramhall believes this is just one of numerous pieces of relevant data too often missing from the TCO calculation. Buyers will need much more data if they are to understand the potential benefits of adding battery-electric equipment to their portfolios.

Vanguard’s family of battery-electric products

He places equipment downtime, labour and fuel costs high on the TCO calculation list, adding that, with downtime, “labour is extremely costly, so whenever a fitter needs to go to site or spend time fixing a machine, this just adds cost on top of lost revenue.�

According to Bramhall, a regular downtime issue related to small petrol-powered engines is the fuel valve, which can either prevent equipment from starting or, if not closed during transportation, lead to costly oil or fuel dilution.

He says, “Our Vanguard single-cylinder engines incorporate the fuel valve into the on/off switch � which we call TransportGuard � thereby eliminating the problem. This could help rental companies save a lot of money from downtime and related issues.�

Simplification of use is clearly a selling point, and Bramhall highlights that electronic fuel injection (EFI) engines, which eliminate the choke, are by far the most popular.

“A battery has no choke,� he says. “It’s just on and off. Push on and start work, then push off when finished � it doesn’t get any easier. And this technology is better accepted and appreciated by the younger generation.

“Battery tech is helpful in terms of ease of operation and reduced emissions at the point of use. As for operating costs, while electricity is cheaper than fuel, the cost is lower.�

And this is not insignificant, given that fuel represents the largest variable cost of operating a machine.

Paul Bramhall, Director of Electrification and Rental for the EMEA region at Briggs & Stratton

Another cost that may be underestimated is operator wellbeing. Bramhall gives the example of using a petrol-powered walk-behind trowel inside a building to smooth concrete. “There is sure to be significant noise and emissions,� he says, “and any reduction in either is an opportunity to improve not only operator wellbeing but also the wellbeing of other workers on the project.�

Upfront cost is key

From the perspective of rental companies, while TCO is an important discussion point, the real challenge is the upfront cost.

If the problem were simply that battery manufacturers were being greedy for profit, there might be a simple market-led solution. In fact, the bill of materials is undeniably higher for battery technology than for small mechanical internal combustion engines.

“This creates a dilemma,� says Bramhall, “as rental businesses feel they can’t charge enough of a premium for the technology to balance the payback calculation.

“They also want to ensure the TCO on equipment is satisfactorily reduced by the time they come to sell it.�

Avoid cutting corners

Bramhall’s final word to potential buyers who are laser-focused on the initial cost of battery-electric machines is that they should always prioritise quality, performance and, more importantly, safety over lowest possible price.

“Our Vanguard batteries have layers of safety built into them,� he says. “For example, the battery controls the charger, not the other way around, which is unlike most batteries. This prevents the risk of thermal events during charging.�

Bramhall’s advice continues: “Overcome the safety hurdle first, then you can make every effort to drive down costs. You can do this by standardising as much as possible and maximising the utilisation of the battery over as many different applications and brands as possible.

“When it comes to battery technology, people can be blinded by the ticket price. They see that a smaller battery is cheaper, so they buy it. But of course, the runtime is less, so they need to buy more batteries.

“At the end of the day, they find it really isn’t cheaper � plus the shorter runtimes and number of battery changes will inevitably lead to a team of frustrated operators.�

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This article was produced by ±ØÓ®ÌåÓý Content Studio in collaboration with experts from Briggs & Stratton

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All images courtesy of Briggs & Stratton, unless otherwise stated

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