Construction industry is largely dependent on heavy equipment and one the most important factor that contributes to the profit making of this industry is the low diesel prices. If heavy equipments will consume fuel that is sold at a lesser price, the construction company as a whole will be in a position of making real high profits. The price of diesel plays a major role in giving a good shape to a construction or for that matter any industry that uses heavy equipment to a larger extent. Many companies are still in the process of acquiring heavy equipment that are reliable, competent in working for long hours and also that consumes less fuel and is more productive.
So when we have machines that are designed to consume less fuel and be high on productivity, it will be an incentive to have fuel at lower prices. Companies that possess such machines can experience high profits year after year. However, the crux of the matter is that diesel prices do not remain same all the year. It tends to fluctuate quite many times in a given year and that is what comes into play and cut down the profit percentage. As long as the diesel prices are in check, things are in control and all are in a merry state of mind but once the price starts soaring, construction owners’ starts getting cold on their feet. Thus it is proven that the construction companies are at their best when the prices of diesel are low.
Boon for small construction companies:-
When the diesel prices are low, it is almost a sort of boon for the small construction companies. They can’t wish for anything more. The problem that many small construction companies experience is that they can’t afford to buy heavy equipment that consumes less fuel and is high on productivity. Such type of machines are extremely expensive and often out of their budget. Therefore they have to do with construction equipment that are either used ones or not that advanced and such type of machines tends to consumes more fuel. In a situation in this, they can’t wish for anything more than to see the diesel prices at the bottom.
Eco-friendly machines are way too expensive:-
Heavy equipment manufacturing companies are also producing machines that are eco-friendly. They call them green machines. They emit low intoxicants as compared to diesel run machines. The catch is such machines are very expensive. Since they are in their initial phase and also contribute largely towards the betterment of the environment, the manufacturing companies have decided to keep it at a higher range. Thus, such machines are not in the range of all the construction companies and only few giant companies can afford to have them. This means that the ones who can’t buy them have to work on machines that run on diesel and therefore they will find it very helpful to buy diesel at a lower price.