Is Electrification the Right Move for Off-Highway OEMs?
The short answer is, likely yes. As a mobile systems integrator, we always have our eye on the future. An important part of predicting where the market is going is watching regulations that are impacting the consumer vehicle market.
One of the major regulations right now is the ZEV (Zero-Emission Vehicle) mandate in California which states among other things that all light-duty vehicles must be ZEVs by 2025. This regulation has been adopted by other states and it’s fair to say that this is the direction the market is moving. Additionally, in 2021 California signed a law that will essentially ban the sale of gas-powered small off-road engines (SORE). This includes engines that are rated at or below 25 horsepower used in machinery like lawn and garden equipment, logging equipment, commercial utility equipment, and specialty vehicles. This regulation should be in place by January of 2024 or when regulators determine implementation is feasible, whichever date is later. If you are a manufacturer of equipment that falls into this category, it makes sense to make your entire line compatible instead of manufacturing equipment specifically for the California market. Also, it can be safely assumed that over time this, like the ZEV mandate will be adopted by other states.
So if you manufacture larger mobile equipment you may be asking, “why do I care?” We believe that the industrial mobile market will be moving in the same direction as state and federal governments continue to implement regulations to help reduce the emission of greenhouse gasses. We would encourage you to visit the Alternative Fuels Data Center to see what regulations and incentives might be impacting you and your end-users currently or in the near future.
At Cross, we are serious about the move to Electrification. We’ve worked with a number of vendors to source quality electrification components and have hired a team of engineers who specialize in mobile equipment electrification. To start a conversation about the electrification of your mobile equipment contact us today.
Cross Company has over 60 open positions throughout our coverage area. If you are interested in working for a 100% employee-owned company, please take a look. Or, if you know of someone looking for a job, please share with them!
