Heavy equipment manufacturers are facing unprecedented challenges in keeping up with demand, innovation and the speed required to bring new products to market.
The landscape is evolving, and to stay competitive, many large Original Equipment Manufacturers (OEMs) are exploring outsourced engineering services to fill internal gaps, reduce timelines and leverage specialized expertise. This trend is driven by multiple factors including the loss of internal expertise, the growing complexity of products and the race to innovate in areas such as electrification.
Outsourced engineering services can help heavy equipment manufacturers bridge internal engineering gaps and accelerate product launch timelines. Further, working with an engineering-focused contract manufacturer can create an even more seamless transition from product design and development into scale production.
The Growing Need for External Engineering Support
For many established heavy equipment OEMs, internal engineering teams are facing increasing pressure. One of the biggest challenges is the loss of internal expertise as seasoned engineers retire. This trend was somewhat inevitable in the US in light of the demographic shift as baby boomers exit the workforce. This was further exacerbated during the COVID-19 pandemic with many accelerated retirements. These factors have left companies with significant gaps in institutional knowledge and forced organizations to rethink how they manage and distribute engineering talent.
At the same time, heavy equipment manufacturers are entering new technological spaces to improve efficiency, reduce environmental impact and meet the demands of the new climate economy. These include energy storage, process electrification and utilizing power conversion to accelerate development of electric heavy equipment. These areas require specialized knowledge that many internal teams may still be building. The need to move fast in these domains is clear—there is a desire to be first to market with new, innovative solutions that can give heavy equipment companies a competitive edge.
In this context, outsourced engineering partners can offer significant value. These partners often possess a wide range of skill sets that complement the OEM’s existing team and have broad experience from working across different industries. This expertise allows OEMs to quickly access the necessary technical knowledge and speed up their internal processes.
Filling Expertise Gaps and Building Stronger Teams
The loss of institutional expertise can be a daunting challenge, but outsourced engineering services offer a solution by providing depth and breadth in key areas. For example, many external partners have experience in designing, testing and scaling up products across various industries, giving them a broader perspective on solving engineering challenges. Across the landscape of high-power engineering, these partners can bring diverse skills that quickly fill internal knowledge gaps.
Moreover, a strong partnership with an external engineering firm goes beyond simply adding manpower. It creates a collaborative environment where knowledge is shared between the OEM and the engineering partner. Over time, this exchange of information can build up the internal team’s expertise while also enhancing the partner’s understanding of the OEM’s unique challenges and processes. This symbiotic relationship strengthens both sides, providing long-term benefits beyond just addressing immediate project needs.
Partnership can also lead to more efficient, scalable integration to accelerate product development and launch in the future. Particularly with an engineering-focused contract manufacturer, working together on projects that cover the full product life cycle can ensure smooth transition from design into manufacturing and with a long-term focus on servicing and repair. It’s critical to look for contract manufacturing partners who dedicate team members to manage process-driven transitions through excellent project management.
Driving Innovation: Electrification and Emerging Technologies
Innovation is at the heart of why many heavy equipment manufacturers seek external engineering services. A clear example is the electrification of heavy equipment—a transformative shift from traditional mechanical power to electrified solutions. This change requires highly specialized knowledge in areas like power electronics and energy storage. Internal teams that are used to mechanical systems may look for external expertise to tackle the complexity and rapid pace of heavy equipment electrification.
Outsourced engineering partners, particularly those with experience in electrification, can be critical in helping manufacturers navigate this transition. These partners often have a broader view of industry trends, having worked on similar projects across multiple sectors. They can bring fresh ideas, proven methods and a more agile approach to product development. By leveraging an external team’s knowledge, OEMs can accelerate their entry into electrification and similar emerging fields, bringing new products to market faster than would be possible with internal resources alone.
When working specifically with a contract manufacturer that provides engineering services, another key advantage of outsourcing is the ability to leverage supply chain expertise. Engineering-focused contract manufacturers often have relationships with suppliers of cutting-edge materials and components, which can be essential when developing electrified equipment. These partners can help OEMs evaluate and build strong supply networks, ensuring that new products are not only innovative but also manufacturable and scalable.
Accelerating Product Development and Time-to-Market
Speed is a competitive advantage, and in today’s heavy equipment market, being first to market can make all the difference. For established manufacturers, accelerating product development is essential, especially when launching new product lines. However, internal teams are often stretched thin, tasked with balancing ongoing projects, product design and testing.
Outsourced engineering services can provide the extra hands and expertise needed to meet tight timelines. If internal teams are focused on core product design and development, external partners can take on crucial tasks like prototype builds, test development and validation. This division of labor allows OEMs to push products through the development pipeline faster, without sacrificing quality or increasing the burden on internal teams.
Moreover, when an outsourced engineering team works within a contract manufacturing organization, the benefits extend to production. External partners can help ensure a seamless transition from design and development to manufacturing by developing products with scalability in mind. They can collaborate with the internal team to implement design-for-manufacturing principles, ensuring that once a product is ready for production, it can be efficiently scaled to meet market demand. This approach minimizes delays and ensures that products reach the market faster.
Solve Your Engineering Challenges with a Trusted Partner
Outsourced engineering services offer heavy equipment manufacturers a powerful tool for staying competitive in a fast-paced, innovation-driven market. From filling expertise gaps and driving innovation to accelerating product development and ensuring smooth production scaling, external partners provide the support OEMs need to overcome internal challenges. As manufacturers face the dual pressures of workforce changes and the push to enter new technological domains, partnering with an engineering service provider can be the key to success in bringing innovative products to market faster.
By leveraging the unique expertise and resources of these partners, OEMs can stay ahead of the curve, delivering cutting-edge solutions that meet the evolving demands of the market.
To learn more about how Plexus can support your engineering team to reach your business goals, contact us today.