Jason Steadman, business development manager – electrification – North America for Vanguard Commercial PowerVanguard Commercial Power
1. What challenges most affected the mobile OEM landscape in 2024?
2024 has been a dynamic year for mobile original equipment manufacturers (OEMs), with numerous challenges impacting the industry. While supply chain disruptions are easing, they haven't disappeared and continue to delay production and impact the availability of essential components. Getting timely access to the specialized components needed for new technologies like electrification remains a real challenge. At the same time, customers are cautious about investing in new equipment as electrification becomes more mainstream.
Because of this, OEMs are being challenged to demonstrate the value and total cost of ownership benefits of their machines, especially when it comes to electrification. End users still have misconceptions about the runtime of electric equipment and its ability to meet their operational needs. They sometimes struggle to see the long-term savings associated with minimal maintenance and the elimination of fuel expenses.
Battery technology is changing rapidly, and we anticipate in the years to come that the upfront costs will become even more affordable. In the meantime, we are working to help OEMs articulate the long-term value proposition of electric solutions, highlighting the cost savings associated with reduced fuel consumption, lower maintenance requirements and extended equipment life. The industry is also facing a persistent skills gap, making it challenging to find and retain talent with expertise in electrification, software and data analytics – all crucial for developing the next generation of compact equipment. Finally, meeting ever-tightening emissions and noise regulations and sustainability targets is a major push for the industry, requiring serious investment in research and development and a deep understanding of the evolving regulatory landscape. But despite all these challenges, I'm optimistic. The industry is demonstrating remarkable resilience and ingenuity in adapting to these pressures. The companies that embrace new technologies, invest in their workforce and truly understand their customers' needs the way Vanguard Commercial Power does will be the ones that thrive in the years to come.
2. What are your predictions for the mobile OEM landscape in 2025?
I think 2025 will be a year of significant transformation for the mobile OEM landscape. Electrification will continue its expansion beyond niche applications and will become more common in mainstream equipment segments like compact construction, agriculture and turf care. This broader adoption will drive demand for versatile and robust electric solutions that can meet the diverse needs of these various applications. Simultaneously, I also think we'll see a growing emphasis on integrating smart technologies and connectivity. OEMs will increasingly leverage telematics and data analytics to optimize machine performance, improve efficiency and enhance the operator experience. That’s why Vanguard is continuing to invest in our smart lithium-ion battery solutions. Batteries equipped with a battery management system (BMS) — like all Vanguard commercial batteries — offer a powerful advantage: data accessibility. This technology provides a wealth of information about battery performance and usage that can revolutionize equipment ownership and management.
For businesses, this data unlocks a deeper understanding of equipment utilization, enabling optimized fleet management, remote diagnostics and proactive maintenance scheduling. This translates to increased efficiency, reduced downtime and improved profitability. BMS-equipped batteries like Vanguard commercial batteries are transforming how we interact with and manage our electric-powered equipment, ushering in a new era of informed decision-making and optimized performance for everyone. OEMs will continue to navigate an evolving regulatory landscape. Emissions regulations will undoubtedly continue to tighten, pushing OEMs and end users towards more sustainable and efficient technologies. But beyond emissions, we foresee a growing emphasis on noise pollution. While electric equipment offers inherent advantages in noise reduction, meeting increasingly stringent noise standards will require careful engineering and design considerations across all aspects of equipment development. Ultimately, 2025 presents challenges and opportunities for the mobile OEM landscape, especially with electrification. We're not just observing these trends; we are actively shaping the future of electrification. We are investing heavily in research and development and expanding our product portfolio so we can provide OEMs with the innovative solutions they need to navigate this evolving landscape and build the next generation of electrified equipment.
3. In what area(s) do you see the most potential for acceleration or advancement in 2025?
In 2025, we see potential for accelerating the adoption of swappable battery technology in the off-highway market. This technology offers compelling advantages, particularly in applications where maximizing uptime and minimizing downtime are critical. Imagine a world where, instead of tethering equipment to a charger for hours, operators can simply swap out a depleted battery for a fully charged one and get back to work in minutes. This is the power and potential of swappable battery systems. However, widespread adoption hinges on overcoming a key barrier: standardization. A swappable battery system is only as effective as the ecosystem of compatible equipment it supports. That's why we are actively collaborating with OEMs across the globe to expand the range of equipment that can utilize our swappable batteries.
We are working to create a robust ecosystem where customers have a wide selection of compatible products, maximizing the value and flexibility of their investment in swappable technology. By fostering these partnerships and expanding the availability of compatible equipment, we aim to unlock the full potential of swappable batteries and accelerate the transition towards a more efficient and productive future for the industry.
4. What will be the biggest challenge for OEMs and the industry in general in 2025?
Looking ahead to 2025, one of the biggest challenges for OEMs and the off-highway industry at large will be managing the transition to electric power while maintaining, or even exceeding, the performance standards of traditional combustion engines. It's not simply a matter of swapping out an engine for a battery and motor; it requires careful consideration of the entire system and its integration with existing equipment. This integration process takes time. OEMs need to ensure that electrified equipment delivers the same power, torque and responsiveness expected by their customers. They need to optimize battery life and runtime to meet operational needs. And they need to validate the durability and reliability of these new systems in demanding environments.
This can be a complex and time-consuming undertaking, often requiring two to three years of dedicated engineering and testing. While this may lead to longer development timelines than initially anticipated, it's crucial to get it right. We are committed to supporting OEMs throughout this transition. We are providing not only intelligent lithium-ion battery systems but also the engineering expertise and application support needed to ensure seamless integration and optimal performance.
5. What factors should engineers and their companies consider when making decisions in the mobile OEM space in 2025?
Navigating the mobile OEM landscape in 2025 requires careful consideration of a multitude of interconnected factors. Engineers and their companies need to start with a deep understanding of their target applications and the specific needs of their customers. Factors like runtime, duty cycles, environmental conditions and space constraints will heavily influence the choice of power solutions and other critical components. Beyond technical specifications, evaluating the total cost of ownership is crucial, especially when comparing electric solutions to traditional combustion engines.
Integrating new technologies, particularly battery systems, demands careful planning and execution. Engineers need to assess the complexity of the integration process, considering component compatibility, system optimization and the availability of engineering support from battery suppliers. Staying informed about the latest technological advancements is also no longer optional; it's essential for survival if OEMs want to stay competitive in this industry. This includes advancements in battery technology, motors and motor controllers as well as connectivity and telematics. The abundance of choices in today's market can be overwhelming.
For OEMs, making the right decisions for their company and their customers requires a strategic approach that balances technical considerations, economic factors, regulatory compliance and a deep understanding of customer needs. We are supporting OEMs throughout this decision-making process by leveraging our industry knowledge and power application experience to help them determine what’s right for their business and their customers as they expand their equipment offerings.
6. Please highlight a recently introduced product from your company that meets a specific, pressing need in the mobile OEM space, and describe briefly how the product is uniquely designed to meet that need.
We are acutely aware of the pressures facing mobile OEMs, particularly the push toward electrification and the need for robust, reliable solutions. This year we expanded our portfolio to include motors and motor controllers so we can offer our customers a complete battery system package. Our new motors and motor controllers are designed specifically to address some of the most pressing needs in this space. Firstly, ease of integration is paramount. OEMs are looking to electrify existing equipment lines or develop new electric models efficiently. Our motors and motor controllers are designed with this in mind, featuring standardized mounting patterns and streamlined interfaces that simplify the integration process. This helps OEMs reduce engineering time and shorten their time-to-market. Secondly, performance and efficiency are critical. Our motors offer high power density and excellent torque characteristics to ensure that electrified equipment can meet the demanding performance requirements of various applications. The accompanying motor controllers are optimized for efficiency, maximizing battery life and extending runtimes.
This translates to increased productivity and lower operating costs for end users. Finally, durability and reliability are non-negotiable. Mobile equipment often operates in harsh environments, so our motors and motor controllers are built to an automotive grade: engineered to withstand vibration, dust and extreme temperature. This ruggedness ensures dependable performance and minimizes downtime, a key factor for OEMs and their customers. Our motors and motor controllers include different power options to meet voltage needs across equipment sizes, including compact equipment like blowers and walk-behind trowels as well as pumps, sprayers, power rakes and more. Options include the MVG1500, MVG2200, MVG3000 and MVG4000 motors and MC2000, MC4000 and MC8000 motor controllers.
By adding motors and motor controllers to our portfolio, we are able to serve as a better strategic partner for our OEM customers as we help them reach their electrification goals. We're not just offering components; we are providing a pathway to a more sustainable and productive future for the mobile OEM space.
7. What are some of your company's priorities in 2025 with regard to electrification, automation, innovation, emission reduction and/or other emerging trends?
In the year ahead, we will continue to drive innovation and advance electrification solutions for the off-highway market. Our priorities are centered around delivering cutting-edge technology, enhancing user experience and supporting our OEM customers in their electrification journey. We will continue to invest in our lithium-ion battery technology. This includes developing charging solutions that streamline charging operations and maximize uptime for our customers. We are also expanding the versatility of the Si1.5 so it can be used in parallel with other Vanguard batteries. This unlocks even greater application potential by providing increased runtime and performance for demanding applications.
Beyond product development, we are dedicated to close collaboration with our OEM customers. We understand that the transition to electrification can be complex, and we are committed to providing the engineering expertise and application support needed to ensure seamless integration and optimal performance. We believe that electrification is key to unlocking greater performance and productivity in the off-highway industry. By investing in advanced battery technology, expanding product offerings and fostering strong partnerships, Vanguard is leading the charge toward a future where equipment operates more efficiently, effectively and reliably.
