Heavy equipment
Heavy equipments are considered to be the main stay in the construction industry. The projects which were impossibility of yester year are a reality of today. For example, the Konkan Railway Project in India was a dream even for the British Raj as they gave up the project because of implementation and techno-mechanical requirements. All those difficulties were put aside and with the help of sophisticated heavy machinery, the dream came true in a matter years.
In the Middle-East, life has completely changed for the past few years with the growth of construction industry with its main activities based in the United Arab Emirates. A travel through the high-quality roads and bridges in the UAE, we can understand the importance of those things which made it possible. All the 4-lane roads are filled with the equipments which are moving from one work site to another. Excavators, Cranes, Forklifts, Crawlers, Dozers, Mini Dumpers, Loaders, Front End Loaders, Hydra Crane Grabes, Backhoe Loaders, Brick Manufacturing Machine And Concrete Block Manufacturing Machines, Tandem Rollers, Steel Rollers, Asphalt Equipments, Vibrating Rollers, Graders, Generators, Pneumatic Rollers, Rotary Tiller, Crane, Dragline Excavation System, Drilling Machines, Feller Buncher, Forklift Truck, Hydraulic Demolition Hammer, Prime Mover, Demolition Grab, Horizontal Directional Drilling System (HDD), Cable Hauling Winches, Cable drum transport trailer, etc. of almost all brands are moving throughout day and night. The major business in the Middle-East countries is the sale and hire of such equipments and their spare parts. A major share of the business grabbed by the major brands such as Caterpillars, Volvo, Komatsu, Tadano Cranes, Bobcats, JCB, Atlast Copco equipments, Ingersoll Rand, Liebherr, O&K, Atlas, Mecalac, Schaeff, Zeppelin, Furukawa, Fiat, Hitachi, Motabert, Krupp, Rammer, Iveco-Mag, MB, MAN, Cummins, BHEL and TATA of India, etc.
Behind all engineering marvels in the recent history has got the strong support of heavy equipments everywhere in the world. A recent study shows an annual growth of 5.4% for the construction equipment industry by 2009 and the market is estimated to witness a $110 billion business. In the construction machinery segment, road construction equipment has a significant share with $4 billion annually and it will expand further since almost all countries in the world giving much importance in upgrading their infrastructure.
The fast expanding economies like India, China and the oil-rich Middle-East Arab countries are in the forefront of construction activities and all the major brands in the world establishing their market in these countries. Many of them have already started their manufacturing units, keeping in mind the further growth. Between the major players of manufacturing companies there is a stiff competition going on for the past few years and that will continue for a long time due to the huge demand. The European and Japanese markets are not as demanding as in the previous years due to their position remains as a supplier rather than an end-user status.
In the business, Volvo, Komatsu and Caterpillar are the main players. Volvo stepped up their effort to storm the market with their recently buy outs. Even though Volvo is little costlier, they have a good demand in the market and the Swedish giant is the second largest truck makers after DaimlerChrysler. Now they have become third in the world of construction equipment manufacturers after their recent deal of $1.3 billion to own the road building equipment unit of Ingersoll Rand. Also, they have secured a 70% stake in the famous Shandong Lingong Construction Machinery in China. This deal will give them an edge over other players in the Chinese market to have a decent share of the business. At present they are mainly concentrated in North America and Europe. Their deal of $1.1 billion to acquire Nissan Diesel will further brighten their presence everywhere. With these acquisitions, they can further add the equipments like compactors, paves and milling equipment in their range of products. They have a record sale of 40.6 billion Kronor or 17% increase and 41% jump in the profit.
German Engineering Federation recently released their estimated turnover of 13.5 billion euros and 5% growth rate by 2008 in this sector. They have an unexpected growth of 13.6% in exports. This would be 15 per cent more than in 2006.
Another scope in this segment is through online transactions. Almost all major brands have established their online trading. Online business is convenient for the companies, dealers, and the buyers since no need of visitors and visiting and face to face bargains. Many of them offers discounted rates due to the savings in establishing floors and shopping centers for their business. Like in other businesses, they have clearance sale too and high-end equipments are offered at heavy discounted price in such online clearance sale. Another advantage of such online business is the reach of their business across the border. Not only the equipments are on sale here, but their parts are also sold online.
Another important area in the equipment market is the business of used equipment market. Large construction companies sell their equipments after a particular project and the second hand dealers buy them. Smaller companies in the market buy them for a quarter of their original prices for a new one in the market. Online shops have been established for the used equipment market also. Export of used equipment to other countries such as African countries has also become a lucrative business.
Scrap dealers also gain in this business since the parts business is very profitable and many buyers are looking for these cheap parts from the demolished equipments.
Anyway, heavy equipment and related business will flourish further in the coming years and many challenging engineering jobs will be taken up and many dreams will come true. High growth expected from the Asian countries and Middle East. Companies have started to flock in these countries and established their network to cater to the demand and to avoid import of those equipments.
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