Construction Total Cost of Ownership

by Shell

There are two key ways to reduce the total cost of ownership in the construction sector; the first is ensuring that you use the most appropriate lubricant for every piece of equipment. The second is implementing effective lubrication management.

Lubrication management is critical to the construction industry in particular. 87% of construction companies have experienced unplanned downtime, with the majority of downtime incidents directly related to lubrication issues. Our expertise lies in working with you to ensure that you manage lubrication properly, helping you to reduce the total cost of equipment ownership.

As the construction industry continues to grow, particularly in places like China where rapid urbanisation is taking place, there is a greater competition to deliver projects on budget and on time. Companies that outperform competitors are eating up this new growth, there is every effort to maximise productivity in this fierce market landscape.

We see many customers extending equipment life beyond warranty and opting to rent rather than purchase new machinery in an effort to maximise availability of capital and minimise operating costs. Those investing in new equipment are looking for technology that offers cost- saving potential. However, one thing too few customers appreciate is the impact their lubrication practices have on productivity. Shell’s experts work with customers in order to assess a construction project’s end to end maintenance costs, and deliver lubrication solutions capable of minimising them.

A common issue in construction equipment is fuel injector malfunction. When this happens, unburnt fuel often enters combustion chambers and dilutes oil which significantly impairs product performance and wears down the component. Shell’s lubricants are designed to remain stable despite dilution and thus help to prevent unplanned shut downs.

The emergence of new OEMs from Asia is introducing a broader variety of construction equipment to the industry, all with slightly different lubrication requirements. In addition, in regions like North America, many construction companies are starting to move into quarrying and cement manufacturing. This is diversifying their portfolio of equipment, and means that the lubricant must be able to perform in even more challenging operating conditions.

As changing conditions, equipment and construction needs disrupt the marketplace, Shell’s expertise lies in delivering lubrication processes that can help customers achieve their goals, and ultimately reduce costs. Through effective lubrication, Shell has achieved helping customers worldwide to make over $139m in savings.

_{Based on research commissioned by Shell Lubricants, conducted by Edelman Intelligence (Nov - Dec 2015.)}

1. _{Total Cost of Ownership (TCO) is defined by Shell Lubricants as the total amount spent on the equipment, incl. cost of acquisition and operation over its entire working life, and costs from lost production during downtime.}
2. _{Based on savings delivered to Shell Lubricants customers.}