Category Archives: Construction

Heavy equipment industry is fast catching up the rental market

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Heavy equipment companies may experience a hard time to sell their machines in the market. They might not find buyers at all times. Due to the cost of the machine which is invariably high, not many construction companies can afford to purchase them and at the same time the needs of the companies also change which means they have to keep on changing the heavy equipment as per their needs. Now it is certainly not feasible for a small construction house to keep buying machines as per the demand of the project. Therefore the best suitable option available to them is to rent the machine till the time they need them. Get done with their work and hand over the machine to its owner.

Though heavy equipment manufacturing companies do not directly deal with renting the equipment but there are entities that make good revenue by purchasing machines from the heavy equipment companies and then renting it out to the end users. Since they are dealing with new stuff, the rental amount one has to pay is comparatively higher than the ones given on rent by individuals. They may be slightly expensive but the quality of the equipment is unparalleled with any other machine listed by any individual.

On the other hand, the equipment possessed by these entities are thoroughly checked before it is listed on their website. So it means that when the guys who want the equipment on rent comes to get the machine, he can be completely assured that he will be taking the best with him. These entities are slowly catching up the heavy equipment rental market and they particularly believe that the year 2016 will be a great year for their business. It is primarily of two reasons. The first is the construction and mining industry are at its peak and it does not seem to come down at least in this year and the second reason is people want quality stuffs and they also need assurance which is provided to them by such entities.

It has been witnessed that people who take machines on rent have a hard time to convince its owners that the machine has developed some complication that was beyond his control and the giver of the machine penalizes him for the problem. This issue is somewhat managed if they take the machine from these small companies. Since these companies have their engineers who can work on the problem they do not fine the takers for anything and everything. This actually increases the confidence of the takers on these companies and they prefer to go with them. Moreover, they are also assured that these companies pick new machines either directly from the company or majorly from banks that confiscate heavy equipment over non- payment of installments.

These companies have quite easily won over the hearts of the contractors and small construction houses and have found a good opportunity to make decent income.

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Fuel price affecting the construction industry

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For the last few years, we are seeing a decrease in the oil price across the globe. The price of crude oil that was $129 a barrel has now fallen down to less than $50.00. This is a quite a fall and it has affected the economies of many developing and developed countries. However, there are very few countries whose economy has not been affected by this reduction. Any rise or fall in the price of fuel has a huge impact on the heavy equipment and construction industry and as per the current scenario where the prices have dipped sharply it has left a huge impact on the construction sector. If we assume that the cost of construction will fall with the fall in the oil price, it may not always be the case. On the contrary we also see an increase in the price of finished products. However, the chances are more for the price to go down.

Fuel price plays a significant role in lowering the price of transporting raw materials and other items that are necessary for the construction business. Also the fuel required in heavy equipment will cost the company less which means that the company can now utilize the funds for some other purpose or can just keep it as reserves so that whenever it needs to take any strong financial decision, it can do so and utilize the reserves. Even the industries that are associated with the construction sector benefits a lot when the fuel price is down.

Market experts are of the opinion that the fuel prices that are currently at its bottom will soon pick up and then the picture of the construction industry will differ from what it is for the time being. As of now, it is hurting the oil and gas exploration and production companies but is benefitting the rest but as soon as it starts to increase, they will start benefitting and the construction sector might have to face the heat. Countries that import oil while the prices are down experiences good profits but as soon as the price goes up, they feel the pinch. They then have to import oil at higher price. As a result of this, the construction sector at that time takes a hit. They can’t afford to sell the end product at a lesser price.

Countries like Saudi Arabia, Kuwait and other Gulf countries that extracts oil and are also the major exporter do not experience any crunch when the prices are high. They in fact find it to be convenient to them. They can sell the fuel at an increased price to the rest of the world. The construction industry in these countries also makes good deal of profit as the fuel prices are mostly less. In case it incurs any loss, it has to do with factors other than the fuel price. Low fuel price has come as a boon to many small construction companies who have just started their business few years ago. They are now able to spend less on fuel and can utilize the money to attain business accomplishments.

Make way for new talents in your construction company

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Talents are much needed resource for the growth and development of any economy. So right from running a small grocery store to operating a mighty construction company, the need of fresh talent is highly important. It has been witnessed that companies ideally want to hire experienced people rather than picking up young boys for the job. They feel that the experienced lots know their job well and will fulfill their duties honestly. They for some reason do not have the same faith with the young population. Well this is not a healthy sign because after a certain period of time you will face shortage of employees and will then be forced to hire guys who know nothing about the work you are engaged in. Therefore it makes more sense to hire young talents and train them so that they can become an asset for you and contribute towards the growth of your company.

There are institutions that train the young guns on heavy machinery. They produce competent operators but the only thing that they lack is experience. They can’t gather experience if they do not get the opportunity to work with some company. All they need is a chance to display their talent. They may induce new ways of working that can prove to be beneficial for the company as a whole. So when you see that your company is growing and you need men to work, make way for young talents. Similarly also hire experienced guys but the number of experienced and inexperienced guys should be proportionate.

Since the young guys lack experience, all they need is bit of support and they have the ability to stand on their feet. They need a bit of help from the guys who knows the work and this is how they can mold themselves into a better workforce. Hiring new talents is also beneficial in terms of saving revenue for the company. You do not have to pay more for their services as they are in learning mode. That does not mean that you have got the right to exploit them. The wages should be discussed with them and should be at par with industry standards. You can then check the ones who are performing and should simultaneously increase their wages. Pay them for their hard work. They truly deserve every bit of it.

Being the owner of a construction company, you should give clear instructions to the tenured guys on how they should behave with the new ones. Instruct them to be polite with them. They are bound to make mistakes as they are in the learning phase but that should not give the experienced lots the opportunity to take the young guys at task. Your instructions will ultimately make a favorable condition for your employees. They will regard your values and will hold you high. The policies of the company pertaining to new talents should be crystal clear and you should ensure that they are followed religiously.

Looking to grow your business – Make use of LinkedIn

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Internet has indeed become a boon for many people who have aspired to start a business of their own. When you begin a business, the first hurdle that you come up with is procuring good clients who will stick around with you after receiving quality products or services from your company. Getting clients who can give business to you was becoming very difficult and on top of that you have those big business houses that were not ready to let their businesses go to small start-ups. They were doing everything possible to ensure that the small companies do not get clients and eventually they get rid of them and there stays no competition.

Things have now changed a lot and acquiring new clients is not as difficult as it was a couple of decades ago. Especially people who belonged to the heavy equipment business had suffered a big deal in the past but with the advent of internet and many social networking sites they are able to show their work to thousands of people at a time and they are not paying anything extra for it. There are some sites that do charge a nominal fee for promoting a business but not every website does. Someone who is associated with the heavy equipment business should definitely try LinkedIn to connect to people associated with the construction industry so that the ones who are in his list will know every detail of his business that he wishes to share.

First and foremost, you need to sign up in your LinkedIn account and create a profile. Please make sure that the profile you set up should be very professional as it will be viewed by people who will connect you for business purpose and hence do not leave any scope for any casualness to appear on your profile. Share all your details and write a lot about your business and what you ideally do. For instance, if you are engaged in selling and servicing of heavy equipment you should state that in detail. Mention which kind of machine you basically deal with or if you deal with every kind of construction equipment you should mention that explicitly out there. Since when you are in this business is very important for others to know as that will help them analyze the experience you have in this form of business.

Your language should be polished and avoid using any slangs. This can go against you in a big way. If you have accomplished any goals that you want others to know about, do share it on LinkedIn. People have the right to know about your accomplishments. Simultaneously, always keep our LinkedIn account updated as it will let others know that you are an active member and you have taken this up quite seriously.

Putting up your photo is also of much importance. However, you can’t put a shady one or the one where you are partying along with your friends or you are enjoying your time with your girlfriend/s. You should post a decent picture that has only you in the photo and with decent looking attire. This all will go a big way in generating more contacts which will be fruitful for your business.

Joint Checks with Heavy Equipment Rental House and Construction Companies

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Construction companies are often of the opinion of taking heavy equipment on rent rather than buying them as it may prove to be very expensive for them. However, they also find it difficult to gather information of people who are willing to rent their machines. They may do a search on internet but the results are not always encouraging. Most of the times, they do not get what they are been searching for. It is quite obvious to not get the machine they want as the guys who want to rent their machine do not know what the other party wants.

They just put up the ad based on what they have and this what makes things difficult. The taker needs are not necessarily met by searching for machines over the net and therefore they need someone to help them meet their requirements. This is where a heavy equipment rental house comes into play. They are the ones who act as a bridge between the giver and the taker and they do this quite successfully. The modus operandi is pretty simple. Since both the parties know about the existence of a rental house, they turn up to them and give them their requirements. The giver’s requirement is usually the rental amount that needs to coincide with the comfort level of the taker.

If the taker feels that the rental amount is well within the budget of the company, then he asks the rental house to show the machines. The rental house in turn contacts the giver and asks him to come down with the machine or arranges a meeting of both the parties in his office or at a place that is convenient to both the parties. The taker can then inspect the machine and if he finds everything satisfactory, then he goes for the deal and just in case if he does not find the machine worth for his project, he lets the rental house owner knows about it.

In the entire process, one thing that is very crucial is that both the heavy equipment rental house and the construction companies should stay in close contact with each other as there may be always a need to procure machines on rent or give it on rent. Either ways, being in close contact will help both the parties know the requirements and what the rental house can offer. There have been scenarios where the big construction companies could not get good machines as they were rented out to some other small companies. This mainly happened due to lack of joint checks between the heavy equipment rental house and the construction companies.

The party who wants to rent out their machine should also stay in close contact with the heavy equipment rental house as it will be easier for them to rent their machines quickly. They can just walk in to their office and check if there is any party who is interested in taking a particular machine on rent. If they find a taker, the transaction can happen quickly.

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Construction business is a dynamic business – Do not take decisions alone

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Whenever you are about to take an important decision in your life, it is prudent that you have a talk with your near and dear ones or the ones whom you trust that they can help you cross the challenge with their expert advice and then take your decision. If you skip taking any advices from people, it may so happen that you start doing something without knowing much about it and end up endangering your life or career. That was about life and so it is with your business and especially when you are dealing with a dynamic business like construction, you got to be all the more cautious about what you are doing. Any incorrect step can prove very costly to you and also to the people who are connected to you with your business. Construction business is quite dynamic in nature:- If you have set your foot in the construction domain, you have probably entered into one of the most dynamic industry of today’s time which is dominated by players who are pretty old in this business. They are also the one who has a bit of hold in the construction market and can change things to their convenience. Having said this, it does not imply that they can play around with things as per their whims and fancies. That is never the case and will also not be feasible in the future. The construction sector is influenced by large number of factors and the big players are just one small factor. Other than that, you got to be cautious about other factors as well that has the potential of causing enough harm to your business if ignored. Expert advices are needed in every stream also in construction domain:- You may have spent quite a good number of years in the construction business, yet you may find yourself in a situation where you may need advice from people. It is not that you do not know the way out but it is just that you are tensed then and may not be able to pick the right way out. Therefore, you may need some consultative talks from your peers and people you know in this industry from a long time. They should be the right guys who can give you appropriate suggestions and may get you out of a mess. Taking decision along can be harmful. Take people along:- When you are taking important business decisions, it is very important that you do not skip the presence of other people working in your company. They are the ones who can come down with valuable advices, something that you may have never thought about and after hearing them you may just wonder “how can I skip this?”. Well, a single head may not be sufficient to take all the load of a business and therefore it is better if you can share the load with other trusted people in your company. That will set things right for you.

Diminishing the ground pressure to increase efficiency

Heavy equipment is unable to perform to its maximum ability when its wheels have to move on wet lands. Wet land makes things very difficult for heavy equipment and it has to exert additional strength to move on it. Especially equipment with wheels are vulnerable to wet lands. Exerting extra strength directly puts more pressure on the engine of the machine which in turn has to work more to just move in that space.  This means that the engine also becomes vulnerable and it may be possible that it may soon need a replacement or a checkup by a mechanic. People dealing with heavy equipment believed that regular crawler tracks will suffice the soft lands but when it was put into practice, it was found that crawler tracks are not sufficient to move on such lands. It was therefore necessary to build something that can diminish the ground pressure and can thus increase the efficiency of the machines.

Machines without low ground pressure also causes lot of problems to the terrain. For instance, machines that are used in forest areas uproot the weeds that are not meant to be uprooted and also cause damage to the land and trees. Understanding the need of the user, Caterpillar along with John Mackay Ltd. Has manufactured the world’s first low ground pressure excavator. They named the excavator as CAT 312 hydraulic excavator. The engineers while building this new machine have customized it with reconditioned undercarriage that involves old track motors that were initially reconditioned by Finning. They also customized the 1.4 meter non-offset track pads. These pads originally belonged to a 312C model. Extra care was taken to ensure that the machine fits the needs of the customers and also offers higher efficiency.

The problem was not only limited to small contractors but was more attuned with big construction companies who take big projects and eventually end up with unlimited hurdles. Same was the case with one Scottish contractor named Malcolm Construction. This company also had to work on swampy grounds and experienced the same problem that many did in the past. Malcolm Construction used a JCB JS145 excavator to excavate the land. This machine had longer track frame and the track pads were 1500mm wide. JCB ideally do not have this wide track pads and it was modified on request of the company to meet its requirements.

There was another crane named Manitowoc 21000 that was known for exerting low ground pressure but it was last seen at Las Vegas Conexpo in the year 1999.  Manitowoc not only reduced the ground pressure but it also eliminated the requirement for huge tracks. This made it simpler for the cranes to move things from one place to the other. It has been a great success for the heavy equipment manufacturing companies to have solved the problem of high ground pressure by introducing mechanisms that are easy to use and also solves the problem.

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Heavy equipment with latest technology is an asset

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Just buying heavy equipment for the sake of possessing one does not make any sense. The equipment that you buy should have the latest gadgets that can ease the work for the operator and will also fasten things up. Today everybody expect us to complete the work in stringent deadline and this is only possible with the help of machines fitted with advanced technology gadgets. This also helps you to make an impression in the overall construction segment and allows you to establish a brand value of your company. Heavy equipment manufacturing companies are in the process of selling 2 types of products. The first one is machines that are competent in doing all the work but may relatively take more time and the second one is equipment that is quick, easy to maneuver and can manage to get the work done with a lot of precision.

The first type of heavy equipment is not so expensive and is mostly bought by small construction companies or contractors but the second one is usually bought by mighty construction companies who work on strict deadlines. They are specifically designed to bring precision to the operator job and therefore they cost dearly in the market. It also depends upon the company that you buy these machines from. Not all heavy equipment companies charge you the same amount for the type 2 machines. The companies which have its brand value charge more and the one which is competing to make its place in the industry may out the price a bit lower than its competitors.

If you are using the type one class of machines and if you aim to get bigger projects, you have to switch into the type 2 class of machines. You also need to ensure that you have the staff who knows to operate those advanced piece of metal. This means that you have to hire some experienced people and also need to ensure that you use those experienced men to train the men who have worked with you for years. They also need to know how the technologically advanced machines work. The reason to train your old staff on the latest machines is that they are with you for years and there is less chance that they will leave you. So it is better that you train your old men with new tricks and utilize their experience. You also do not have to pay more to them for working on advanced class machines. They on the contrary will be grateful to you to allow them a simplified version.

Now comes the cost of the machine. These heavy equipment are quite expensive and you may have to apply for a loan to possess them. It will be very unlikely to get these machines on rent. You would be lucky if you manage to get them on rent. Before you make any headway towards buying these heavy equipment, ensure that you have good financial standing. Do not shell off all your heard earned bucks behind possessing the metal.

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Buy medium range heavy equipment than spending a fortune on larger ones

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In a construction business, one need to be very particular with his finances and just can’t afford to spend money lavishly in buying heavy equipment. This does not mean that one should simply refrain from buying heavy machineries but should take ample care before deciding the kind of equipment he would like to go for. The only reason why he should be cautious is heavy equipments are highly expensive piece of metal and if you go for machines that is installed with latest technological devices then the price of the machine rises even further. So you must have kept a budget for your machine and when you go to shop you are astonished to find that it is more expensive than what you have estimated.

In case if there is a dire need for you to procure heavy equipments, you can go for medium range machines that work pretty much at the same level as the bigger ones can do (perhaps with few basic differences pertaining to the make and technology of the machine) and that will also cost you much lower, thereby will not make a big hole in your pocket.

Few facts one should consider before they go for medium range heavy equipment.

It should meet your business requirement:-

Meeting your business requirement is the first priority that you should be looking for when you decide to buy medium range heavy equipment. Though medium range heavy equipment is capable of performing every task as perfectly as its larger version could have done, but it has its own limitations. So while you are picking up medium range machine, you should check if it is viable for your project or you have to stick to its larger version. It makes absolutely no point later to remorse over having picked the wrong one.

It should be economically convenient:-

The reason you are picking medium range machine is that it is economically convenient to you. However, it is advisable that you do a bit of market research before you take the final plunge. It is very crucial to study the price of different machines with different features. A medium range heavy equipment with latest technological devices can be more expensive than the bigger one. Now the question is do you really need those many features in your machine and if no, then it does not make much sense to go for that model.

Should be low on maintenance cost:-

Heavy equipments are undoubtedly highly expensive but there is something more worrisome than just its cost and it is the maintenance of the machine. People have to spend good chunk of money in repairing their equipments which proves to be a much costlier affair. Not all heavy equipments will cost you high on maintenance but some definitely does and you got to pick the one that sounds good as far as the maintenance part is concerned.

Medium range machines are always a better option. However, at times the project you are working on may demand the use of the bigger ones. But if you can work it out using a smaller version, you should be going for it.

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Caterpillar 613 Scraper

Heavy equipment is more in demand in both the construction and mining industries. Over the period of last few decades, it has shown the world that the overall construction industry has moved into a new dimension and the one that is responsible for this shift is the heavy equipment that is been used for construction work. With the help of internet, finding out which heavy equipment can be used for what kind of work is fairly simple these days but when it comes to choose your pick on the brand, things start becoming confusing from there. A number of brands associated with heavy equipment have made their presence in the gigantic industry. So now people have more options which means that they can pick up anything that they feel is the best for them. However, having more options also leads them to a sort of confusion where it becomes very difficult for them to identify the brand they should be making way with.

It has been witnessed that Caterpillar is a brand that has managed to penetrate deep inside the hearts of major construction companies. Many of them would prefer to go with Cat products as they believe that CAT is known for producing quality produces at quite a reasonable price. CAT is also brand that has been in the market for years with an untarnished image and it is quite a hard job to keep your image spotless especially after having stayed in a competitive environment for so long.

CAT is known for producing many heavy equipment but it has a reputation of designing some world class scrapers. Speaking a bit about the scrapers, we would be discussing briefly about the CAT 613 scraper. The net power of the machine is 150 hp with a displacement of 636 cu in and the power is measured at 2200 rpm. The total fuel capacity is around 65 gallons and the size of the tire is 18*25, 12 PR. It is also known for its solid grip in muddy ditches and rocky slopes. The maximum speed while going forward is 24 mph. The operating weight of the scraper while it is empty is 14305 kg. Talking about the bowl of the machine, the heaped capacity is 11 yd3 with a maximum depth of cut of 6.7 in and width of cut of around 8 ft in.

Moving to the dimension of the machine, the overall length of the scraper is 32.1 ft in and the width is around 8 ft in. The overall height of the machine is 9.4 ft in and the wheelbase is around 20.8 ft in. Many are of the opinion that CAT products are usually high priced ones and are not within the budget of many small to some mid-sized companies. However, the fact is completely opposite as far as the 613 scraper is concerned. Many small to medium sized construction companies can easily afford to buy a new 613 scraper without hurting the overall budget of their company and will find it a worthy purchase.