David Larson, head of Precision Solutions and Telematics Operations in North America for CNH Industrial, spoke with Chuck Zimmerman this week to give an update on the latest announcement from CNH & Raven; an expanded and strengthened supply agreement between the two companies.
The new agreement strengthens an existing long term relationship that CNH has had with Raven. There has been an agreement between the two companies for a number of years that covers components and systems; things like flow meters, rate controllers, valve controllers, AutoBoom height control, and AccuBoom automatic suction control.
“This strengthened agreement is a supply and development agreement; this allows for rapid innovation for both companies. Rather than only having components available as an aftermarket, we believe the real opportunity is for CNH and Raven to do more collaborative innovation on components that are targeted towards our specific groups of customers as well as integrated into our machines as part of the core design. What you get is a more robust product in terms of all the things that you can do because it is built in instead of added on.” David Larson, CNH.
CNH is committed to continuing with the development of opportunities that will benefit their customers. The benefits of this agreement will show up at New Holland and Case IH Dealers in the parts network within the next couple of months. For components that are integrated into the machines, it will be available as a new piece of equipment.
As commodity prices have fallen recently, there is more of a focus on maximized production with reduced costs. Larson says precision technology continues to grow in terms of available market and innovation coming to the market. People are looking for different ways to manage their costs while increasing production. This creates a new opportunity ripe for innovation.
“This is really just an extension of the long history of partnering that CNH has had with the best-in-class in the industry for development of high-tech components for our machines. We really believe the future is in collaboration between the top equipment manufacturers and the high-tech companies to bring future innovation to the customers in a quicker fashion.”
Listen to Chuck’s interview with David Larson here: Interview with David Larson, CNH Industrial
For more information on the agreement, and to hear from Raven’s Paul Welbig, click here.