Monthly Archives: January 2014

2014 is going to bring a boost to the Resident Home Construction

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All over the world, the construction industry is experiencing a radical growth. With the increasing population, the need for a place for the people to live is also increasing every day. There had been a constant decrease in the rate of the construction of residential projects in the past few years, but in the year 2014, this trend is seen to be changing to a great extent and is expected to be radically transformed.

Reasons for the low record of the residential project constructions:

  1. The first and foremost reason to talk about while discussing the reasons for a stopped or rather reduced residential construction plans, must include the factor of economic depression all over the world. With the cost of products being increased and the rate of gross income being reduced in almost every country of this world, has been the major reason for this low record. This, of course, includes the reduction of the dollar rate worldwide.
  2. The budgeting of every country has constantly increased the cost of the heavy construction equipment in the past few years that has been a very strong reason for the inability of the construction companies to be able to buy new construction equipment for their construction companies or projects. As a result of this, the residential construction projects have not taken place in the past few years, to a great extent. Political turmoil has been a major reason for being a barrier in the construction of resident homes.

What is the market trend for resident house construction industry for the year 2014?

The McGraw Hill Construction company forecasts that with the year 2014 proceeding towards a stable economic growth, the resident home construction industry would have a huge increment in its construction market. There is a positive hope of increasing the number of construction rate to a double digit. Although, according to Robert Denk, the normal start of the housing would be at the rate of 1.3 million, the National Association of Home Builders, Washington, D.C. expects not to be too hopeful from the very beginning of this year. Towards the end of this year, Robert Denk of the National Association of Home Builders, Washington, D.C. believes, the number of housing would increase to an almost 18% or to be specific, 924,000 housings.

Economists from all over the world are very hopeful for this increment. A 1.5 million start by the next year, is a clear forecast that the year 2014 will have a smile on its face. As a result, the hard times of the heavy construction equipment manufacturing companies will hopefully come to an end. The cost of the construction equipment, matters a lot in the development and construction of new resident homes. Be it single residence or multiple residents, the year 2014 is going to be a big relief for those who are wishing to have their own homes.

The Commercial Construction Forecast for 2014

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The construction business has developed and made a strong position in the world. Due to its great profit and other advantages it has successfully made such position in the market. While in previous time, the housing market plays the major role to keep up the growth of construction business, now, the non residential or the commercial buildings are getting ready to take the business ahead. People are quite optimistic on the forecasts of commercial construction for 2014. In fact, this year is going to see a huge development in the public sector. Randy Giggard, the chief economist of FMI, Raleigh, N.C said “The recession pushed millions of workers out of the industry, and it is not going to be easy to get them back, so a slow but steady recovery might be the best thing for helping to control inflation.”

Due to the growing industries and offices there is a huge demand for commercial places in all over the world. In order to give a professional look to your business it is highly important to build an outstanding commercial building. Therefore, this business got an amazing responds in the last year and in the present year, the commercial construction market is going to have even stronger growth. However, there are some obstructions that cause little obstruction in the path of the business. One of the major problems is caused by the political uncertainty. It happens due to the extreme budget battles between ruling and opposition parties. Thereby, if any such political uncertainty starts to grow then it can hamper the growth of this business. But now, as per the research and predictions are concerned it can be said that commercial construction business is on the bright side.

The business of some big construction companies are really on the bright side as per the research is concerned. It will soon experience a 9% hike in this particular business in this year. In fact, it is also said that the housing and commercial buildings market value will be double in 2014. In the past three years many companies have seen some drastic loss in this business. So this increment of their profit will definitely help them to gain their reputation and profit. Many economists predict that such big companies will receive an 8% hike in the manufacturing work in next year and 6% in this year.

Thereby, it can be assumed that the commercial construction business of some big companies will definitely get a huge success in this year that will continue to the next year as well. In fact, not only the big industries, the small or medium industries that deal with this business will definitely get a positive respond from the market. It is the best time to boost up your construction business and apply such effective methods to make it a perfect business platform.

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.

Make your mark in the construction segment by acquiring the machines from renowned heavy equipment manufacturing companies

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Branding is very important nowadays. Be it your clothes, or in your business, if you do not use or sell branded products, then you are nobody. If you are a heavy equipment or construction equipment businessman, then you should be careful about what equipment you are selling. Without a brand, people do not easily trust the products. Branding makes all the equipment trustworthy. Not only this, branded products come with a security and the guarantee that if there is any problem with the product, the company will take care of all the damages and repair the problem.

How to choose a brand for heavy equipment

If you are running a construction site, then you should hire all the necessary heavy equipment for the construction work from branded companies. There are many companies that manufacture branded heavy equipment, but before choosing the right one for you, you must check out a few factors:

  • One must know about the best companies in the market that are well known and renowned for their heavy equipment manufacturing. New companies are often inexperienced and therefore the quality of their products often deteriorates.
  • Which company manufactures the best excavators or the best backhoe loaders is also very important to be known. If you do not have the knowledge of all the heavy equipment construction company, then you will lose the option.
  • The best way to choose the most suitable heavy equipment manufacturer for your construction site is to hire an engineer who can guide you with the equipment.
  • However, if you are not dependent on an engineer, you can choose your option without any problems, through the easiest way, that is by judging which company manufactures the best equipment for the construction purpose. If a company manufactures an excavation machine and a loader separately, whereas the other company manufactures a machine that fulfils both the options, then you should definitely choose the latter, due to obvious reasons, that is, otherwise you would have to have spent for two pieces of equipment.
  • Budget is the next most important thing where you must take a very careful decision. It is an established fact that heavy equipment is very heavy on pocket. So before choosing the company from which you want to buy the equipment, you must check if it is permitting your budget, or is the equipment cost efficient.

Best heavy equipment manufacturing companies in the world

There are many companies, from where if you buy the heavy equipment for your construction site, then you will definitely make an impact. The most popular companies are Caterpillar, Deere and Company, Melroe Company, Terex Corporation and many more. The equipment manufactured by these companies has the logo of the companies inscribed on them. A branded product not only makes a good impression, but also assures a quality service. If there is any problem in the heavy equipment, branded companies will provide you with complete assistance.

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.

Selling Heavy Equipment Can Become Simple By Following Few Basic Selling Techniques

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As the economy of the present times is not very favourable for any business or any industry, every step that you take must be very careful. When it comes to selling and buying your heavy construction equipment, you have to be extra careful as they do not come at a very easy cost. No buyer will be willing to burn a hole in the pocket and no seller will be willing to encounter a loss. So if you are standing on the latter half of the equation, i.e., if you are selling your equipment, then you must follow a few simple tips to increase the sales amount of your heavy construction equipment.

As the heavy construction equipment are always quite in demand, it is a very good advantage for the sellers to make a profit. However, increasing the profit amount is a tricky job indeed. There are quite some tips that can help you sell the heavy construction equipment.

How to sell new heavy construction equipment?

In case you are selling the equipment in their brand new condition, then the factors that you must keep in mind in order to increase the sales are:

  • Put an ad for the equipment. If you do not have a price ranged in your mind, keep a negotiable price, just mentioning the minimum cost.
  • It is nowadays of high esteem and of course of assurance to buy products from the house of reputed brands. Therefore, if you are a dealer of heavy construction equipment then selling the branded heavy construction equipment would be much easier.
  • Cold Calling/Tele Marketing

How to sell old heavy construction equipment?

New construction equipment can be easily sold. But selling the old ones is not that easy and that too with a profit, needs excellent marketing skills. If you want to make a profit by selling the construction equipment in their old age then the tips that would be quite beneficial are:

  • Sell the equipment when the demand is high and the supply is less. Thus you will get a price that is much more than the obvious market value. If you sell the product when the market is saturated with similar products, then the buyers would pay quite less than you deserve. This needs a thorough analysis and research of the market condition.
  • If the equipment is manufactured by a reputed brand then no matter what the age of the equipment is, it will be easily sold.
  • Advertising is very important. When you sell your equipment, highlighting its positive features, working condition and negotiable price will bring attention of the buyers towards the equipment.
  • When you figure that your equipment is in need of constant maintenance, it is good to sell it. But one machine, which is of the same age as the other, might get sold faster than the other due to its condition.

Forecast for Heavy Equipment Sales in the year 2014

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A revolution is going on all over the world, in the construction industry. With a constant growth of the population, there has been a need for new habitats for the people in every country. The construction companies are, therefore, going through a continuous pressure for building new construction. Not only the buildings, but also the construction of the roads, bridges and overpasses to build civilized world, the construction companies need to avail the heavy construction equipment without fail.

Why there has been a constant need for heavy construction equipment?

The heavy construction equipment makes the construction work extremely easy and helpful. Whether it is the construction of a overpass or the need to remove the demolished debris of an old construction, without the help of the construction equipment, the work would not have been possible, reducing the dependence on man power and increasing the rate of accuracy, the heavy construction equipment has turned the construction equipment upside down. When you use the construction equipment like the loader, excavator, bulldozer and other heavy construction equipment can do the task of demolishing, mixing, constructing and all other steps of construction work; can be done without any wastage of money.

The market of the heavy construction equipment:

The heavy construction equipment is one of the major industries in the world that has become the largest sectors for investment. All over the world, in every developing country, billions of dollars are being invested on this industry. Therefore, this market is experiencing a constant and continuous growth. Despite the extremely heavy price of the construction equipment due to the facilities, mechanism and the quality of the equipment that are manufactured by the best of heavy construction equipment manufacturing companies all over the world, the sales of these equipment do not become threatened.

The trend of sales of the heavy construction equipment in the year 2014:

As per the statisticians and the experts who can analyse the trends of demands and supply of the heavy construction equipment, the sales of the heavy construction equipment will increase by 100,000 units from the last few years trend. This includes the crawler excavators, backhoe loaders, dozers, asphalt pavers, wheel loaders, air compressors, motor graders, asphalt batching plants, concrete pumps, dump trucks, concrete and, compactors, piling rigs and mobile cranes.

In the past few years, the heavy construction equipment sales business in the countries like the United States of America, and in Asian countries like the China, Korea, Japan and India, has had serious business of more than $6.5 billion in each sector. Experts plan to see more of this equipment being sold this year. Apart from the cost of the products, there has been no barrier in this industry. But the facilities and the advantages that the construction equipment provides to the construction works, makes it extremely beneficial to use the heavy construction equipment and therefore, the sales will continue to be increased in this year as well.

How Can Small Construction Companies Stay In The Picture? – Mistakes They Need To Avoid and Steps That They Need To Take

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Do the massive structure of buildings and bridges attract you to no end? Have you always been fascinated with the way these great structures of urban living are brought to life? If yes, then the construction industry is definitely your call. However, before you set foot in the arena, it would be worthwhile to find out all that you can about surviving in the market as a start up.

Why Are Small Construction Companies Finding It So Difficult To Survive The Market?

  • The one thing that construction entrepreneurs need to understand in this regard is that there are loads of construction companies on the block. And people prefer investing into construction companies that are well established and have a good name in the market. Small and start up construction enterprises, therefore, find it difficult to get a foothold in the entire picture.
  • Another factor affecting the business of the small construction firms are the expenses involved in the smooth operation of the firm. Financial aspects such as bank loans often prove to be a hurdle. Along with this, there is also the fact that small companies often find it difficult to decide the correct area for investing money and as a result incur significant amount of losses.
  • There is also the global economic picture that has to be taken into account in this context. It is often seen that small construction companies are unable to keep with the economic fluctuations of the global market and as a result, they soon disappear from the picture.
  • There is also the fact that many of the small construction companies do not bother about gaining a bit of work experience before they start their company. Consequently, the construction company gets eaten up by big giants of the industry.

Running a Construction Company Successfully

So, the next question that needs consideration is how can these small construction companies survive this battle? How will they ensure that they gain a stable foothold in the market?

  • Effective management is one of the key strategies to succeed in the construction arena. The more efficiently you will be able to manage your construction organization, the more easily will you be able to gain a foothold in the market.
  • Finances are another important aspect of succeeding in this field. Make sure that you invest into those things that will prove to be beneficial for your organization in the long run. Construction equipment, such as the heavy machinery and other raw materials should be chosen with absolute care and prudence. (Maybe rent from B&R Equipment)
  • It is also important to attract the attention of the clients towards your company and the best way that you can go about this is by advertising yourself widely and in the correct manner. It would also do well if you set your eyes on achieving long term stability instead of going for short term profit.
  • Having a certain amount of hands on experience often proves to be of great help- construction entrepreneurs will then know the tricks of the trade and thus, will be able to go about things in a much easier manner.

Which one consumes more fuel – brand new heavy equipment or old heavy equipment?

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For every construction management company, it is very important to buy all the heavy construction equipment for doing the construction job smoothly. Therefore, the companies always look for the very best construction equipment. No matter what the brand is, irrespective of that, the construction companies always look for the condition of the equipment and their cost effectiveness to consider whether the company should buy the equipment or not.

What are the factors that the construction company should look for before buying heavy equipment?

As the construction equipment come at a huge cost, therefore, it becomes quite expensive for the construction companies to buy all the variety of heavy equipment. It quickly burns a hole in the pocket to buy the brand new equipment from the house of Caterpillar Inc., John Deere and many others. This is a reason why the companies shift to buying the used, second hand or old heavy construction equipment. But compromising with the condition of the equipment many times leads to a deterioration of the production or increases the maintenance. So buying the equipment which is properly working and has not been facing any frequent visits to the service center is the best option. The cab, the engine condition, the age or the date of manufacturing of the equipment and the how long the equipment can perform under heavy and continuous work load or extreme condition, are the very basic factors that the buyers should always look for. Apart from this, one of the very main factors that a buyer must consider before taking any decision is to check whether the equipment consumes a heavy amount of fuel or not. This is because any heavy construction equipment always requires quite a heavy amount of fuel consumption to run properly. As the machines have to perform for a long 10 hours a day almost without any break, the cost of fuel consumption also increases incredibly. So fuel consumption rate must be considered before buying the equipment.

Which heavy construction equipment consumes more fuel – old or new?

When talking about the average fuel consumption rate in the heavy construction equipment, approximately all the equipment consume 7 to 8 gallons of fuel per hour. As the equipment works more and becomes old, the consumption rate increases. This is because the strength of the engine weakens. With the adverse condition of the construction site and the age of the equipment increasing more, the fuel consumption rate increases up to a 10 gal/ hour rate. Therefore, on the basis of fuel consumption rate, a buyer should always buy the newer models of the equipment. However, it is also a fact that the fuel consumption rate varies among the manufacturing companies. This will reduce the other costs. So when you are up to buying the heavy construction equipment, you must consider all these factors before making your decision.

Purchasing Used Heavy Equipment- Things to Be Kept In Mind

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When it comes to the construction industry it would be hard for anybody to deny the importance that heavy equipment in the smooth operation of the field is something that one cannot possibly overlook. And in the recent times, the use of second hand heavy equipment over brand new ones has been gaining in popularity. But there are certain things that have to be kept in mind before one actually settles for the deal.

Why Use Heavy Equipment?

The very first question that needs to be addressed in this context is why would a construction company go for used heavy equipment at all? Well, this is a point that can be dealt with quite easily. Let us first consider the start-up companies. Now, it is a widely acknowledged fact that setting up of a construction company is no mean feat. One would need quite huge amount of resources in order to accomplish this. And heavy equipment which form a major part of the working of the company are quite expensive a deal. Hence, the use of second hand heavy equipment does cut cost quite effectively. Also purchasing brand new heavy equipment in case of limited number of projects cannot really be said to be a viable alternative.

Consider Before Purchasing Heavy Equipment

Buying used heavy equipment for use in the field of construction is definitely a lucrative alternative. But there are certain things which have to be kept in mind while making a purchase of the second hand heavy equipment.

  • For one, make sure that you are completely sure of your requirement. Ensure that you have knowledge about what kind of construction equipment is required by you to serve your purpose.
  • There are a number of auction sites available online that deal with the trading of heavy equipment. In such a case, it is important to select an auction site that is quite high in terms of reliability. The same goes for the offline auction centres.
  • Another that should be kept in mind before you seal the deal is to ensure that the used equipment are in perfect working condition. You can go for a test drive to confirm the fact. Whatever be the function of the equipment, make sure that it is perfectly capable of performing those operations without glitches.
  • Another handy tip in this respect would be to check on multiple auctioning alternatives available, so that you do not lose out on the best deals that could availed at the price. Also ensure that you all the relevant papers with you once you settle down for particular heavy equipment.

Research- that is the key word for closing the best possible deal when it comes to the buying of heavy construction equipment. You have to hunt for the best alternatives that you can have in terms of auction sites, brands and the like in order to come up with equipment that could best fulfil your purpose. Therefore make it a point to have enough information about each and every aspect of the issue before you sealing a deal.