OEM Off-Highway State of the Industry 2024 Report

Editor Chris Vavra talked with several industry experts for his OEM Off-Highway 2024 State of the Industry report to inform original equipment manufacturers (OEMs). The experts were:

• Eric Alström, president, Danfoss Power Solutions
• Wilfried Aulbur, senior partner, Roland Berger
• Enrique Busquets, director of mobile services & aftermarket, Bosch Rexroth
• Steve Hornyak, president and CEO, Turntide Technologies
• Michael Lefebvre, manager of global marketing and product strategy, John Deere Power Systems
• Jason Steadman, business development manager for Vanguard Commercial Power
• Darren Tasker, vice president of industrial sales, Volvo Penta.

The report focused on a look back at 2024 and what the industry can expect in 2025. 

Challenges in 2025

As with years past, OEMs will have to navigate several hurdles in 2025 according to the article. Among the challenges they will face in the New Year are:

• The move to electrification (meeting regulations)
• Uncertainty in the market
• The slowdown in construction and agriculture
• Continued supply chain disruptions
• Talent attraction and retention

According to Hornyak, “’As in past years, finding and retaining talented, experienced engineers continues to be a challenge for component manufacturers and equipment and vehicle OEMs. Currently, the demand is outpacing available personnel.’”

Optimism in the New Year

While obstacles exist, the mobile equipment industry has reasons for optimism according to the experts. Some of these are:

• Options for power sources, including electric, hybrid, biofuels, and hydrogen
• Improved infrastructure
• Digital transformation, Industrial Internet of Things and integrating smart technologies, and automation

Hornyak also sees flexibility as mobile OEMs continue to innovate. “’An improved infrastructure is on the horizon,” he said. “This will accelerate in 2025, opening the door for the increased adoption of hybrid and electric systems. Battery-electric power is the most accessible power alternative right now. The other zero-emission and lower emission options, including hydrogen, hydrotreated vegetable oil and other biodiesels, do not currently have much infrastructure and cannot currently scale geographically.’”

Hornyak’s Full Comments from the State of the Industry

The report also links to the full commentary of all the thought leaders interviewed. Hornyak’s full commentary can be viewed here.