Category Archives: Business

Terex has big plans for China in 2015

The year 2014 may have not been so pleasant for many but some companies just know how to make fortune out of nothing. The overall construction segment has seen a decline in the year 2014. Right from heavy equipment manufacturing companies to the big construction houses, most of them have suffered losses. In general, it has not been the year that passed away pleasantly. It indeed gave lot of losses to big as well as small companies. Many companies saw a sharp decline in the sale of heavy equipment, something that was not experienced by many for the last many years. However, this was the year when almost all the companies have experienced the same issue and are struggling hard to get over it.

Some companies found 2014 to be more difficult because they did not foresee the issue in advance. They relied more on domestic markets giving less importance to other global emerging markets. They were of the opinion that it may be difficult for them to conduct business in other countries and they may lose their share of hold in the domestic markets. Therefore, they paid less attention on international markets where there were more opportunities and took a hit on their sales. Simultaneously, there were few companies like Terex that made a smart call and took the plunge to overseas markets. They made some real big plans for countries like China. They have planned to increase their annual revenue to $1 billion from $300 million in the next 3 to 5 years. This means that they have taken far better calculated risk which is likely to pay huge dividends to them in the future. Ron DeFeo, the chairman and the chief executive officer of Terex feels that China plays a significant role in making Terex a $10 billion revenue company by the end of 2015. The CEO sees China as an important player that has plenty of demand. Terex in return has a lot to offer to China. They see immense business opportunity in that country and also in other South East and Middle East countries.

According to the CEO, in the year 2014, China has single handedly contributed around 8 percent of the $4.4 billion revenue generation in the year 2014 and they forecast that it is expected to enhance its contribution to 20 percent. They see immense investment opportunities in China. Terex will be working on their aerial work platform and agrees that the government in China gives a lot of importance to safety and efficiency. The company will therefore pay a lot of attention to the safety and efficiency part and ensure that it abides by the rules and regulations of the country. Slowly and steadily, they may work to create a safety aerial work which will not be restricted only to the business but will be relevant to the whole society. They are in talks with the government to make something of this kind possible.

Terex sees the overseas market as the market with potential and feels confident in doing business away from home.

Managing Heavy Equipment Made Easy With Asset Management

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Being involved in the construction arena invariably means working with heavy equipment. And in this context one has to acknowledge the difficulty that construction site authorities face when it comes to managing all those heavy equipment. It is perhaps this difficulty in managing heavy equipment that has given rise to the popularity and demand of the asset management software ion the construction arena.

What Is Asset Management All About?

Now, the very first question that must be knocking your heads right now is what is the asset management software all about? Well, to begin with, as the very name must have made it clear that asset management refers to managing of those objects that are valuable, in short assets, for an organisation. Now, purchasing particular equipment, deploying it, maintaining it and keeping a note of its whereabouts is not an easy thing to do. And this is where the entire asset management deal comes in. This system not only makes the entire deal of managing assets easy, but also reduces the chances of them being misplaced or stolen or the like.

Asset Management and the Arena of Construction

If the statistics of the National Insurance Crime Bureau is taken into account, one can easily see that around 11,000 heavy equipment get stolen every year with the recovery rate being as low as 21%. Now, as heavy equipment form such a part of the entire construction industry, one could easily assess the loss that comes equipped with misplaced or stolen construction equipment. This is perhaps the biggest reason why asset management has become such an important part of the construction industry. Not only does the use of asset management software help in reducing costs, it also acts instrumental in improving information availability and customer service.

Asset management allows you to coordinate your scattered fleet geographically, thereby, reducing the cost of operation quite significantly. Operating an entire construction site is no easy a deal and when there is extensive paper work involved, you can be assured of the entire business getting as gruesome as possible. But by means of the electronic trip orders, the construction organizations can efficiently manage and organize assets, manage projects, coordinate with those involved in the business, drivers, operators and the like and thus, handle things efficiently.

With asset tracking and management tool, you can remain close to your equipment even when you are far from it. The system has been designed in a manner so as to alert you as soon as the heavy equipment leaves their designated position. This allows you to save quite a lot of time that would have otherwise gone into tracking the equipment manually.

Hence, one could easily conclude the asset management tool to be quite an asset in itself in the construction area.

Best Options for Leasing Heavy Equipment for Construction Industry

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With the increase in construction projects the demand for leasing construction equipment has also increased tremendously. Construction industry is labour intensive as well as capital intensive. The contractors also need to use complex and diverse equipment such as Tractors, Excavators, and Loaders etc. Construction activities are numerous and diverse. Contractors have to manage and bring all the factors of production together such as land, labor, capital etc. Cost of all construction projects is an important factor .The contractors nave to control the budget and coordinate competent project supervision. Construction equipment are costly and the maintenance and repairing costs are also high. Specific heavy equipment requires qualified and skilled operators. Smaller contractors face financial constraints to buy heavy equipment since their budget is fixed. Bigger contractors lease or rent heavy equipments to be cost effective and also get the appropriate equipment for construction purposes.

Leasing is a lucrative option for both large and small contractors to cut down their expenses in construction projects. But there are several factors to consider before leasing heavy equipment.

 

Capital: When a contractor, project manager purchases new heavy equipment, they need to find out what are the best options available to them. The heavy equipment tend to decrease in value with daily wear and tear. So instead of making huge investments in buying them it is the best option to lease the heavy equipments to conserve money for unforeseen needs.

Equipment Supervision: Another factor to consider before leasing heavy equipment is equipment supervision. Heavy equipment such as scraper, cranes, excavators, loaders, rigging equipment are very costly. You need proper maintenance as well as dexterous operators to run them well. You may also require utilizing the professional operators to supervise the equipments and legalize their use.

Government Strategy: Government policies are important to consider before leasing heavy construction equipment. The government has laid down certain safety and security instructions regarding the superiority of the machines to be used in the construction site.

In the case of leasing, a contractor can ask for subtraction for the full price of the heavy equipment from the taxable earnings. Capital grants can be asked for the total price of the assets if you are leasing it for a time period of more than 5 years. In certain cases time period of 7 years is mandatory.

Wrap Lease: This leasing contract allows the contractors to merge some lease payments into a single, usual payment. This is an appropriate option for those building contractors who need to lease heavy equipment all of a sudden. Leasing combines their outstanding expenses and they can use it to invest in leasing new heavy equipment. This is extremely useful for those building contractors who are undertaking colossal and complex construction projects with volatile requirements and difficulties.

Fair Market Value Lease: Fair Market Value Lease is an extremely vital factor when you are considering leasing heavy building equipment. This option is beneficial in that case where there will be a fast decline in the value of the equipment due to usual wear and tear as a result of constant daily use. The repairing costs can be high too. These days a number of leasing companies are supplying services of expert workforce at no cost for performing maintenance and repairing work.

So leasing heavy equipment can be can be tricky task. Several factors have to be kept in mind before you make your decision to lease it. The article will give you all the information you need before leasing.

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Advice for young people starting their career in construction industry

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Construction industry is like any other industry where people do not want competition. It is only because if you have more people getting into this industry, the chances of the people getting projects becomes slimmer and therefore when you see a new guy making his way in, he will be welcomed with many obstacles. Creation of obstacles is obvious as others see him as another competitor and therefore tries to make things difficult for him. However, if he decides to keep his foot firm on the ground, then he may get someone who would be ready to help him with advices on how he can establish his business in the volatile market.

Few pointers one must keep in mind before he decides to set his foot in the construction domain.

Overall knowledge about the industry:-

It is absolutely not advisable to enter an industry without knowing anything about it. It is almost like entering inside a dark cave without a torch in your hand. You never know what will apprehend you next. Therefore, it will be prudent if a person works his way out and understand how the industry works and few tricks of the trade if not all. Other than this, it is very difficult to determine when you are ready for the job. You may have not know much about the domain but with the available knowledge you may feel that you have learned a lot and are now ready to take the plunge. But when you indeed take the plunge, you may find yourself in the middle of nowhere. Hence, it is very important to take time and learn things patiently. Get to know as many things as possible and ask people questions. Not everybody will be in a position to answer all your questions but you should not stop till you get your questions answered.

Try to gain some experience by working with a construction company:-

Sons and daughters of construction company owners who want to make a career in the same industry and like to carry on with the legacy that their father has left for them, they prefer working in their company and gain some experience out of it. But not everyone can be so fortunate to have born with a golden spoon in his/her mouth. Most of us have to make our own way in setting up our own business. For them, it is advisable to give few years of their life working in some construction company and learning the tricks of the trade. It takes time to learn things for which people have to patient enough. If you spend enough time and learn most of the things needed to open a company of your own, you have cleared the most difficult level.

Check your financial stability:-

While you are establishing your business in the construction industry, you just can’t ignore your financial stability. Setting up a new business requires lot of money to be invoked into it. Therefore, knowing your financial position is another important criteria that you can’t afford to miss.

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Use equipment tracking system to protect your site

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Are you going to start your own company? If yes, then you must be aware with useful strategies that help you to run your business. Without following the important as well as essential strategies you cannot get success. Well, in case of construction sites, it is really important to give your full attention on your site. You should always be very careful about your machines, workers and other related things of your site. It is your responsibility to take care of your heavy equipment. It is not easy to work with such heavy machines. It takes huge time as well as money. So, you should know all those things that can reduce your profit margin. If you cannot maintain these machines properly then the machines can face many problems. These small damages can turn small issues into major fault. Therefore, check the machines properly and remember wrong billing, unnecessary idling can make you huge fuel cost.

Well, when you are going to do business then you should always be aware with your profit and loss. It is very important to manage profit for business to establish it properly and take it to the next level. There are many easier way that can help you to increase your productivity and help you to get more profits. If you can manage to give you 100% attention and full concentration on your job then it is not so difficult to choose the right equipment tracking system for your business. It is your responsibility to find out the proper devices that can help to track down and monitor solution for the business. If you are going to work with forklift then it is very important to know how to work with it and efficiently it can work for you.

You need to track the usages of useful equipment. As you work with a number of machines then may be for sometimes you do not use one of them and keep it aside. Then it becomes very difficult to track for how many days the equipment is not in use. However, by following a continuous monitoring over equipment give an idea of such things. It also allows you to reduce the fuel costs and assure that the proper and prolonged maintenance is not missed for a single day. You can get the information on fluid levels, error codes and temperatures by using the equipment tracking system.

As many workers work in a construction site, so there are high risks of theft and other similar things. If you stop using a machine for a while then you can lost it as well. Therefore, if you can use the equipment tracking system then it can track down the records of all your machines. Equipment tracking helps to track down the detail of the equipment that is in use and not in use. To protect your site you should definitely take help of such system

Winters may cause immense health hazards to construction workers

Places where it snows are not conducive for construction industry to flourish. But it does not mean that the construction industry will not flourish at all at such places. If it snows throughout the year then it is a grave concern for this industry to set its foot in. However, if it is only during the winters that it snows and for the rest of the year, it becomes conducive for the industry to thrive then that will really help. We all know how immensely difficult it is to take care of heavy equipment and also to work on a project during the cold weather but less care has been given to the fact that it also takes a toll on the construction workers who find it all the more difficult to work in a rough weather and with very limited help from machines.

During winters, heavy equipment tend to stop working which means that the construction workers will have to put their efforts and try to get the work done. At times, it may not be possible for them to finish a job without the use of equipment. In such case, it becomes a loss to the company. In situations like these, companies tend to risk the life of the workers by pressuring them to work overtime in difficult work conditions. The workers have to work on snow or ice and have high risk of slipping while working. They may cause severe damage to themselves. It is therefore very important for the construction companies as well as the workers to follow the correct safety parameters while working in snow. By following these parameters, they will only save their as well as their colleagues lives.

Check if the brakes and other vital parts of the equipment are in order:-

Before you start with your day, it is very important to check if the brakes, horn and other important parts of the equipment are in order. Once the operator is sure that everything is in place, he should carry on with the work. In case if he finds any issues, it is advisable that he get that sorted first and then starts off with the day’s work. Any negligence on his part can cost the company as well as the worker dearly.

Ensure that all the workers wear their safety accessories:-

In many of the occasions, workers skip wearing their safety accessories assuming that they will be safe and wearing those stuffs will be time consuming. Calamity does not knock the door before arriving. It just strikes you and workers should understand this important part. More importantly, the supervisor on the construction site should take the responsibility that all the workers are equipped with complete safety accessories and that there is an emergency team active at the site. Just in case, if there is an emergency situation, the team will be able to deal with it.

Report anything that you find to be dangerous:-

Construction workers should report anything that they find to be dangerous. This will help to save the life of many other workers who may not know about the danger on the site.

Safety norms can’t be ignored in a construction site

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Construction industry is a multi-billion dollar industry and like every big industry it also has areas that can create trouble for the owner of the business. This industry has many such areas but it seems that people have learned how to tackle them effectively and continue running the business. However, there is one such thing that recurs in spite of several steps taken by the governing body. The area is “Safety”. When we talk about Safety, it is not only limited to the safety of the people working in the site but also relates to the heavy equipment that are working along with the men. There have been several safety norms laid by companies but still accidents are bound to happen. At times, it is beyond our control but most of the time, it is within our reach. So how can something that we try to avoid safety happen so often. It is perhaps we tend to get over confident on ourselves and somehow believe that nothing is going to happen and therefore see no use of following the safety norms. This is where we lose our focus from one of the most important aspect that this industry relies on.

Wearing helmets while inside the construction site:-

We may skip to do something as simple as wearing helmets inside the construction site. While we enter the site, we probably do not see any danger but danger does not give a call before coming. A small piece of stone falling from the 20th story building can drill your head leading to serious injuries and you never know if the accident will happen to you or not. Therefore, skipping the most generic part of safety is for sure asking for trouble.

Hire qualified and experienced operators:-

We all want to save money but certainly not at the cost of our or someone else’s lives. What happens when you hire an operator who is not qualified to operate the equipment you want him to work on or for that matter you yourself want to see how it feels to be inside the cab. A wrong push of the lever and a major accident is on its way. You are not supposed to play around with things that are of so much importance. If you want to learn things, learn it from the right person. Hire a qualified and experienced operator. Even if you have to pay more to him, please do so. At least you will be assured that your men and machines will be safe.

Don’t allow the operator to do overtime:-

You may have lot of work to finish on the site for which you need the operator to work overtime. A couple of occasions of overtime are fine but do not make it a habit. Remember, operators are humans and not machines and they need proper sleep or else if they go drowsy at work.

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Komatsu has a lot of expectation from the year 2015

The slowdown of the global economy has put many big as well as small companies in the worry zone and many say it will perhaps take a couple of more years for them to see the glory days. So till then they have to do is to conduct business in the normal fashion without taking more risks. Taking risk at this juncture is only going to tarnish the reputation of the company because it is highly unlikely that you may get any high returns by taking unnecessary risks. Therefore, it is prudent that one carry on their businesses with caution as that will help them to conduct their business with impunity. Many big companies have seen a decline in their sales volume and they feel that the global slowdown is the major reason why they have such a low sales figure. Other than this, businesses in some countries have taken the major hit which has impacted the overall sales figure. Many are even pondering if it will be wise enough to wrap up their businesses in countries where they have suffered maximum losses. That will in a way help them cut off some of their losses in the future. They may also consider to lay off few employees for the time being as that will be a way in which they can save some money for taking major financial decisions.

China which has lately emerged as the world leader as far as its economy is concerned has also seen a fall in the construction and mining sector. Komatsu which is one of the largest producers of heavy equipment feels that China is no longer the market leader. Their sales of equipment in China have fallen drastically than they could have ever thought of giving them a shock of their lifetime. Companies like CAT have similar views. Tetsuji Ohashi, the chief Executive Officer of Komatsu, has said in an interview that China is losing its sheen as far as the construction and mining sector is concerned. He even went on to say that China is losing its hold from the economic growth and it is finally scaling down. The sale of Komatsu equipment has dropped noticeably between April and May and there has high chances that it will miss the annual sales target. He also felt that China is experiencing huge delays in the commencement of some construction projects. Alternatively, he also feels that the demand for mining machinery is also declining. This all attributes to the total mess that is happening in that country affecting the business of the company.

He feels that the impact of the situation in China is big and they have to closely monitor the situation before coming down to a conclusion. They just can’t take a decision without forecasting few very important aspects and are optimistic that things will get back to normal in that country. Komatsu sales have declined to almost 20 percent but they have high hopes for 2015. They feel that the year 2015 will at least heal some of their wounds if not turn the table for them.

John Deere business plans for the Year 2015

The year 2014 may have a wonderful year for many and not so wonderful year for some. But it was definitely not a very happening year for the heavy equipment manufacturing industry. They had to struggle a lot of factors for the entire year; out of which competition was the biggest factor. Other than this, there were factors like global economic slowdown, unrest in the Middle East nations, the overall business slowdown that has largely affected the mining, oil and gas and construction sector and many more reasons that has slow paced the overall industry. Overall, it has not been a great year for the overall industry and the forecast is also not so pleasant. Big and small equipment manufacturing companies are affected alike by the slowdown in the global economy. The sales of the equipment have gone for a toss and there are not much takers available in the market. This is perhaps the reason why many companies have suffered losses and their sales graph shows a massive decline which they have not seen for years.

Talking especially about John Deere, it has not remained unaffected by the impact of the slow paced market conditions. John Deere is known for producing agricultural and heavy equipment machines had to take the beating of the market. Deer’s outlook gave the news that for the new fiscal year the situation will be grimmer and they do not see any major improvement in the market situation. The outlook suggests that the sales of the equipment is estimated to take a dip of more than 15 percent for the current year and may further scale down to 21 percent during the first fiscal quarter. They also estimated that the net income of the company will be around $2 billion compared to $3.16 billion in the year 2014. Things were much better in the year 2013 with earnings of $3.54 billion. The fall in the number of earnings only suggest the performance of the company. It will not be superficial to express that the company needs to take some time out to think and revamp its strategies. May be they need to make some changes here and there and need to focus on few very important issues that may kick off the sales number from where it is now.

The news of poor sales has already affected the price of their shares in the stock market making it more difficult for the company. The company’s earnings were totaled at around $35 billion in the year 2013 which has now come down to $32.9 billion. This dismal performance has not brought down the morale of the employees of the company. The CEO of the company is positive that the company will bounce back and this time with a bang. Though there has been a global pullback in the agricultural sector, still the company will show profits in the year 2015. They have intended to prepare a more resilient model of growth that will help John Deere to turn the table to their favor.

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Application of Equipment Tracking Method for Mounting Profits and Lessening Downfall

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Generally the companies those who depend on the heavy equipment may sometime experience the decline in the profit margin and unfortunately breakdown of the business. The main reasons to this problem are the lack of maintenance of the heavy equipment; erroneous billings can lead to the path of over spending and loss in the market. To curb out the problem the management companies formulated a new kind of solution known as equipment tracking method. It is a constructive equipment executive structure that is appropriate to be utilized with any kind of apparatus.

Equipment tracking system helps the companies to gain knowledge of each and every appropriate machine and its usage. In accordance with the equipment facts the companies are being taught to expand productivity by monitoring equipment tracking solution. This system gives practical information about various equipments like forklift, light tower, bulldozer and generator.  Sometime the appliances are kept in the construction site for long days and when it is again needed it is complex to predict that for how much time the machine was in use. The incessant examining of the equipment in the equipment tracking technique helps in analyzing the longevity of the machine and decreases the fuel cost. Some of the oil and gas companies are applying this method to find out all possessions and equipment very easily. The equipments are connected with the internet connection and the location can be accessed simply. This system facilitates the oil and gas corporations to enhance punter service, perk up billing processes and augment communication with the distant manual workers.

The primary facet of the equipment tracking system is the substitution of customary paper equipment logbook with the computerized record diary. This solution proffers all kinds of information related to equipments and its eminence obligatory for cGMP agreement.  This scheme facilitates the companies with digital signatures and approvals and helps in optimization of handling apparatus. The safeguarding and the calibration measures are analysed electronically in a simpler and faster way. The system gives a practical announcement about the maintenance program of equipment and present the notice prior to the date of expire of any calibration event. This technique can be applied alone or can be accompanied with other well-designed operation management components to increase the output of the organisation.

To operate the equipment tracking technique a computer with internet explorer browser is required. Microsoft SQL Server is the principal database of this system. The client can go through the web page of this solution by browsing only internet explorer. The hardware and software versions are different according to the company’s category. This system is required to maintain an electronic logbook where the records of equipment cleaning, calibration are written. The other quality of this solution is the maintenance of the document in computerised manner so that at the time of approvals and review these documents can be presented very easily. The system also shows the longevity of the engine of any equipment and there is an indicator that displays the need of maintenance of the machine.