Tag Archives: Forecast

Keep a Plan “B” handy when things do not go your way

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Businesses in any industry functions on lot of planning and strategies. The strategies are usually laid to keep things moving and to pursue the overall motto of the company and that is the growth of the company. But there are times when the plans that you have set up do not go in sync with the current situation and this is when there is a likeliness of things going out of control. This is when a Plan “B” comes into picture. By Plan “B”, we refer to a secondary plan which is in place to defend the company from any backlash that comes as a result of the failure of Plan “A”. So when you see that you are preparing a plan which you feel that has half a percentage chance to succeed, you should also think about preparing a correspondent plan that will take over the initial plan if that fails to work out.

Preparing a Plan “B” is easy but following it is difficult. You need to do some brainstorming and discuss things with people from all the departments on things that you should do if the initial plan does not work out. You may even get suggestions that you will find wise enough to be followed but the real challenge is to implement the secondary plan. You have to change the complete course of action from the first plan to the second. This is undoubtedly the most difficult part because it means that there has to be some sort of changes in every department and not everybody can easily accept changes nor it is simple to bring changes throughout the company if yours is a mighty big one. Therefore before you think about jumping for a Plan “B” it is imperative that you understand the pros and cons and also the shape it will give to your company.

If it is a plan that will not have a major impact on the functioning as well as the finances of the company, then perhaps there is no need to have a secondary plan. Yu can always term the first plan as obsolete and move on with something else. But the problem will be when you are thinking of acquiring another construction company where you will have the maximum stake. In situations like these, you not only put the future of the company at stake but also the interest of the shareholders who have invested their money by trusting your thought process. This means that you can’t afford to go wrong and in case if you do then there should be a plan to back the backlash of your initial plan.

Do not forecast a lot and work more on ground realities. When you forecast a lot, you keep a lot at stake and if your forecasts keeping going wrong, it adversely impacts you as well as the company. Being foresighted is good but if you forecast just on the basis that it will all go your way, then that may prove to be a bad move.

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Forecast of the demand of heavy construction equipment in 2014

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With increasing population all over the world, the need for new place to live in, and a need for a better, more civilized and well-constructed earth is growing rapidly. Smooth roads, overpasses, bridges and other constructions have become such an integral part of our lives that we cannot but think of a life without these. Most of the times the construction companies fail to perform their task in time, due to a lack of the supply of the heavy construction equipment at the construction sites. Due to the extremely high cost of the heavy construction equipment, the demand for the construction equipment faces a lack of demand in the construction sites, rather by the construction companies.

As in most of the major countries in the world including Asian countries like China, Japan, Korea and of course India; Australia and the American countries including the most powerful United States of America, infrastructure is playing the main role, in the recent years, despite the cost of the heavy construction equipment, the construction companies are looking for these machines to reduce the cost of labour and to utilize time. In the Asia-Pacific region and the South American countries, the infrastructural growth has brought a focus on the heavy construction industry. As the major companies and powers are investing on the heavy construction equipment manufacturing companies, this sector is experiencing a rapid emergence.

The construction and infrastructural growth in these countries has led to the estimation that this industry is going to have a demand of almost 8.5% more than the previous years. The factors that would be responsible for this growth are of course new product launch, collaboration with other big forces, agreements, joint ventures, merges, expansion, investments and many more. The major heavy construction equipment manufacturing companies like the Caterpillar, John Deere and Co., Komatsu, Hitachi Construction Machinery, Volvo Construction Equipment, follow this same strategy to have a good response and demand throughout the year.

In the year 2014, the economic recovery in almost all the countries has been the most important reason for the growing demand of these machines. Increase in the rate of dollar cost and the recovery from the recession has made the construction industry grow again. The affordability of the people to have their own habitat and new scope for employment has made new constructions possible, making the construction industry grow rapidly. From loaders to excavators, from bulldozers to cranes, each and every kind of construction equipment will have a constant and continuous demand in the year 2014 and the nearby following years.

All those people who have been thinking of having a business in this industry can now start their business of selling and buying heavy construction equipment. This is the best time in the last few years to have a business in this industry. The prospect of this industry would only increase day by day, but has no possibility of reducing.

Forecast of the rental business in the heavy construction equipment in the year 2014

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In the year 2013, the heavy construction company has faced a very low sales market. The experts forecast that this trend will continue in the recent year as well. The highest authority in the forecast industry of the United States of America, the IHS Global Insight company has analysed the global economic tradition and has come to the conclusion that since the global market has faced an economic downfall, the sales market of the heavy construction company will continue to face a bad fortune; but this will make the rental market of the heavy construction company a big business.

Why does the rental industry for heavy construction equipment grow so rapidly?

There have been two major reasons that have been instrumental in making the rental industry for the heavy construction equipment grow so rapidly. They are:

  1. As there has been a constant demand of the heavy construction equipment, the construction companies look for the equipment through various sources. The heavy construction equipment costs a lot due to the facilities and mechanism that it provides to the users while they use the equipment at the construction sites. The extremely high cost of the equipment has, however, been a very big reason for making sales of the heavy construction equipment reduce to a great extent. The construction companies, therefore, look out for options like renting the equipment.
  2. The downfall in the global market due to the extremely economic loss worldwide has been another major reason for the reduction of the sales of construction equipment. This leads to the increase of the rental business of the heavy construction equipment.

What has been the trend of the increment of the rental industry of the heavy construction equipment?

From the year 2010, the rental industry has been experiencing a very bright fortune in the heavy construction equipment business. If the growth rate of the rental industry of the heavy construction equipment is analysed, then it will be seen that every year there has been a huge increment in the rental business. The IHS Global Insight company of the United States of America forecasts that this heavy construction equipment rental company will experience a huge increment of up to $36.7 billion.

What is the future prospect of the rental for construction equipment during the end of 2014?

Towards the end of this running year, the increment of the rental demand for the heavy construction equipment will be increased much more. During the recession in U.S.A., many people had to stay with their relatives and as the housing industries are growing rapidly, there has been a continuous need for the equipment. Many construction equipment manufacturing companies are, therefore, manufacturing new equipment for rental purposes. With an easy solution to be able to utilize the equipment at a much reduced cost has gained a very positive response from the users. With new constructions developing every day, this need will grow more and the rental business will have a very popular demand.