Category Archives: Industry

Heavy equipment industry likely to grow in 2016

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The year 2016 has a lot of things in store for the heavy equipment industry. It has been predicted as the year of prosperity in the construction domain and therefore there will be an up-beat in the heavy equipment industry as well. The sale figure of heavy equipment is assumed to rise. However, it is to be seen that which company will make the most and which one will stand at the edge. The year 2015 has overall been a good year as far as the construction industry is concerned and experts have come down with the analysis that this year will be no different in spite of political uncertainties that has gripped most of the industries. It is perhaps the construction, mining and heavy equipment industry that will not bear the brunt of the uncertain and volatile market. It has more happy time to witness. Apart from minor hurdles things are expected to be well for the industries that are closely connected with the construction sector.

Since the construction industry is doing well, more such businesses are blooming and people are in the mood to buy more advanced heavy equipment. They being more concerned about the environment and hence things are gradually moving towards attaining environment friendly machines. This has given rise to an increase in the demand of heavy equipment that are low of carbon emission and does not harm the environment like the earlier versions. Countries like Germany have induced millions of dollars to produce eco-friendly heavy equipment because they feel that the future of heavy equipment is these eco-friendly machines.

Many other countries are following suit. Though they have not completely given up on producing orthodox machines, they are giving extra impetus on producing green machines. Talking about the overall heavy equipment industry, it seems that the companies in Europe have managed to rope in an increase of 19% in the total sales figure. This is quite a dramatic one as it was not so often seen in the last many years. The sales figure only suggest that on the whole the future of the construction segment is going to be terrific and people can expect to make good business. Not just the old construction house but even the newer ones are getting enough business which is indeed a very good sign for the entire business. Market experts are all happy with the way the market is performing but some are also asking companies to be a bit cautious and not overspend on buying heavy equipment.

The news headlines in the US is no longer coming up with stuffs that speaks ill about the industry. Though some companies may have suffered loses but that does not reflect the complete mood of the industry. So it seems things are better off in the US. If we check the Middle East, there are enormous growth opportunities present for the heavy equipment industry. Countries like Saudi Arabia has shown tremendous growth as far as the construction segment are concerned. This has further glorified the prospect of heavy equipment industry for the year 2016.

Related articles across the web

7 Simple Tips for Young people starting a career in Construction

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

When one thinks about beginning a career in the construction sector, he needs to be pretty sure what he is getting into because though this industry rewards people who work hard to achieve success, it also punishes those who are not able to perform. So one has to be sure which side he wants to be in. There is no rule book that one can follow to make a career in the construction business; it is just that they need to be patient enough and follow what is right and ethical. They won’t be able to taste success in a year’s time. They got to work hard and if they feel that things are not working right for them, then they need to work harder. Follow the right path, devote yourself completely and you will see things working out for you.

Give a thought before you finally pull the trigger:-

You should not want to make a career in the construction domain just because you see your friend’s dad making huge sum out there or you see one of your relatives doing good in his business. That should be a motivating factor for you as they all must have worked extremely hard to get to the place where they are now but that does not mean that you should do exactly what they did. You can get success in anything that you do provided you give your 100% to your work. So before you decide about walking in this industry, think if you really want to stay here for your entire life or else you will end up wasting couple of years of your life into this.

Know more about heavy equipment:-

Knowing about heavy equipment is very important if you want to be in this business. You should know which machine is used for what purpose and accordingly you can take decisions on procuring heavy equipment.

Check your finances before you go for any procurements:-

Starting a business in construction sector is no child’s play and it requires huge amount of investments. You therefore need to check your finances before you go ahead with any procurements of construction machines. You also need to keep into deliberation the operating and non-operating expenses that may incur while you are active in your business.

Hiring competent operators is the key:-

Ensure that you hire competent operators who are experienced in working with different kinds of heavy equipment. They are the ones who also know what needs to be done to keep the heavy equipment healthy.

Try to generate contacts by picking up small projects;-

Since you are new to this business, it is pretty evident that you will not be able to bag big projects as the giver won’t have the confidence in you. Simultaneously, it will not be feasible for you to handle big projects if you do not have any experience in handling any projects. It will be complete chaos. Therefore, pick up small works and try to complete them on time. This will help you to gain experience and simultaneously you will also develop contacts.

Be honest and ethical to your work:-

Honesty and ethics are very important in a business where you are dealing with your client’s trust. Be honest with your work and maintain ethics while conducting our business.

Engage with your employees:-

Always maintain a good rapport with your employees as they are the ones who will work hard with you to give a good shape to your business.

 

 

Construction industry is rewarding – Don’t let other to eat away your business

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

We all want to make good money and want to make it real quickly. This is probably the reason why we choose industries that are more rewarding than others and stick to it so that we can grow our business like anything. However, in the entire process we should not forget the fact that in order to set up a business, it takes hard work, determination and a good strategy to ensure that you keep away your competitors from taking away any pie of your business.

It is pretty obvious that the industry that pays us dearly is not restricted to few businessman and others would also want to join in. So you never know from which way you will find a competitor coming up and latch on to your clients thus affecting your business. Thus it is important that while you are running your business successfully, you also keep an eye on the activities of your competitors and check if there is any new one getting in or any existing getting out of the industry.

One of the industries that have given huge profits to its owners is the construction industry and many people want to give it a shot in this sector. Though it is no child’s play to start a construction business and require huge investments, people still flock in to try their luck and it has been often seen that they hook on with this sector for few years, take up some projects and if things click for them they continue with it or just exit when they feel they can’t move any further. So if you have a set business and you see any newbie flocking in your territory, you got to ensure that he does not eat a big piece of your cake or else you will be left starving.

You can’t really do away with competition as it is a part and parcel of any industry but what you can do at the most is keep a check on your competitors by ensuring that they do not overtake your business and you can do that only by having a clear goal of providing top notch quality work at an affordable price to your clients. No clients would like to go to a new guy as long as they find you doing a great job. They would rather like to stick with you since they know your style of working and have a good rapport with you.

Setting up a good relationship with your client also works in times when you have too much of competition. Your clients will not give work to anybody else if you have an extremely wonderful relationship with them. Nobody like to experiment things when it comes to their business and hence they will want to continue with you provided you being good with them.

Experience matters a lot in this industry. Clients usually prefer to give projects to people who are experienced in the construction domain rather than trying the newbie. Therefore your experience will always come handy when you are experiencing extreme competition and will still find yourself in the position of bagging more projects.

 

Related articles across the web

Maintaining good relation can be helpful to get construction business

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The construction sector is a business of huge competition where you are always in the race of surpassing your competitor so that you can get more business. However, having said that, it is also very important that people belonging to this kind of business have and maintain good relation with each other. You will need the help of the other person at some point of time and in case you do not have a healthy relation with the next guy, you may land into a temporary trouble. In many cases, businesses also come through references. So it means that somebody has spoken good about you and has referred the business giver to you. Now that can be anybody. Right from your client to your business competitor, it could be anybody and yes you heard it right. Even your business competitor can at times be helpful to you only if you share a healthy rapport with him.

The few basic pointers that one should do to create and maintain a strong bondage from people concerned to your business.

Do not try to eat away everybody’s business:-

Undoubtedly, the construction business is quite a tempting business that will entice you to get more and more businesses. While you are in the mode of getting businesses, ensure that you do not become an encumbrance into someone else’s business. You garner businesses on your merit and not by bribing someone and if you see any of your competitor who is not in good shape and trying to get the same project, try to let that go to him. You may not want to eat everything that you get. Let the other guy know that he deserves the business and which is why it has gone to him. He will appreciate your help and will someday return your favor. Please understand that while you are in the construction arena, you will have both good and bad phases. It all depends how good you have been to people when things are good with you. Your generosity will help you during your hard times.

Establish yourself as a clean businessman:-

Being a businessman who causes no harm to others is liked by everybody in the business circle. No one likes to be in the company of a chap who is way too greedy and has the potential to cause damage to other’s business. Good clean people always have a place in everybody’s heart and when you are good to people then you have fewer enemies to bother you. In this way, you can establish a healthy relationship with people sharing the same business and at times can also get some favors from them.

Too much of gluttony can be harmful for your business:-

You must not keep your mouth full that you find it hard to chew. Concentrate on the quality rather than giving more attention to the amount of businesses you are getting. You will get more business on the basis of work you do. If you just keep on adding work without being able to complete them, it will become utterly chaotic for you to handle. On the contrary, you can suggest few names of your competitor who are known for their quality work and in this way you create a good relation with them.

Laying proper strategy can change the face of your company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The one who can lay down concrete strategy and can walk on it will be able to reach the pinnacle. Setting up concrete strategies by foreseeing the obstacles and opportunities is an art that not many can master but the one who can anticipate and work accordingly can reach new heights. If we see what it took for owners of huge conglomerates to come to the place where they are, they will credit it to the fact that they could envisage things. They were able to foresee the threats the company could encounter and on the basis of that they worked things out. They chalked out plans keep the threats into consideration and made sure that all of them stick to the plan.

This kind of an approach is very important in an industry like construction. People belonging to the construction industry often encounter stiff competition from their business rivals and in such a situation it is quite essential that they anticipate the risks well in advance and take necessary steps to get over them. Now once you have anticipated the risk, the second important step would be to formulate plans that have the potential to mitigate the risk and bail the company out of any misadventure.

Setting up of appropriate plans and success goes hand in hand:-

As long as you do not have the right strategy in place, it is very difficult to find success. You may try every possible thing and work very hard to attain success but it only comes when you have a set plan in front of you. You got to think what should be your next step, what you need to achieve next and keep pursuing it unless and until you get it through. Success comes to those who have a set vision and have laid concrete plans to get what they want. It absolutely goes hand in hand with a real tangible strategy.

It boosts the confidence of the investors:-

Construction industry is heavily dependent on investors. You can’t take a big project alone and finance it completely on your own. You need people to fund you at regular intervals. Investors are a big requirement as far as the construction industry is concerned and you have their attention only if you have a tangible strategy in place. You can discuss your plans with the investors and see how they feel about it. It is not necessary that they will always appreciate your plan. It may have certain loopholes that you may have probably missed. Do not get dejected in case your plan is not liked. Try to customize your strategy based on the likings of the investors but make sure that they go in sync with the business requirements. You do not have to compromise to please people to fund you. Ideally if your strategy makes sense, it will definitely boost the confidence of the investors in investing their money in your project. Once they taste success, they will trust you way forward.

Growth of the construction industry is co-related to the economic prosperity of a country

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The growth of any business is directly related to the amount of effort one puts in his business to make it big. However, it is also co-related to the economy of the country. If the economy is sluggish, you can’t really expect much from the business, no matter how hard you work to develop it. You have to wait for the economy to gather some speed so that things work for you and you start doing well. It has also been witnessed that the economy is doing great. However, it is just few specific industries that are not performing due to certain policies of the governing body. This also plays a vital role when it comes to the development of the business. If you are also a part of the industry that is affected by the policies of the governing body then it may cause harm to your business as well. You may suffer hardships till the time the policies are not amended for the betterment of the industry.

Things are quite similar when it comes down to the construction industry. This industry does really well and favors everybody who is associated with it when the policies are favoring it or when the economy in a whole is doing well. But when we check the flip side of the coin where the policies are against the construction industry or the economy is in a pathetic state, the same industry that was booming and was favoring a whole lot of people can turn upside down for everybody. This however does not imply that one should shut shops when the industry is not doing well. It is also not practically possible to close the construction business at the time when things are not going your way and to pick it up from where you left when things are back in shape.

The recommended option would be to go slow when the tide is against and ask the investors to hold on with their investments for some years (if you are associated with constructing condos). You can also take up small works/projects that come your way. When things are not working out for you, it is better that you stick to projects that do not have a good profit margin. That will at least help you to keep the company floating and you may not have to look for any cost cutting measures.

Just in case, you fall in the category where you are unable to get any business neither big nor small, it is prudent that you cut short on your costs by either renting your heavy equipment or if you feel necessary then selling the one off that you feel you may not need them any longer. If things does not become any better after taking these measures, then the last resort to keep your company floating would be to sack employees who are not so experienced but still have a good package. That will help a bit to cut down the cost and you can expect things to move on for few more months.

 

Keep yourself ready for challenges in the construction sector

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Generally, we are surrounded with different sorts of opportunities and challenges. To be specific, we can regard ever challenge as a form of an opportunity because the moment you take up the challenge in life and are able to surpass it that turns out to be an opportunity for you. It is equally important to understand if you should be able to accept the challenge or not. Know your strengths well before you take up any challenge because in case if you are not able to achieve it, it can even break you from within. It has been observed that people who are linked with the construction business suffer big time after having taken up a challenge that they were not suitable enough to fulfill. They realize this later but by that time things have already gone awry for them and they could not convert that challenge into an opportunity for them.

Keeping yourself ready for challenges is an art that one needs to learn and slowly master it. It can’t be taught nor can it be learned in a day. You first take time to understand what you are getting involved in and once you know that this risk is worth taking that you should go any further with it.

Keep your temptations at check:-

It is crucial that you do not fall for offers that are too good to get. You may even get offers that are huge and have many people involved in it. Huge offers are often tempting and it draws you more towards it but you should be wise enough to analyze your benefits and the cost you are paying to get that offer. Oh yes, there will be a cost attached to it. It will not come to you for free. Therefore, before you take up the offer, understand your risk that is involved in the trade and the possible threats attached with it. Since there will be more construction companies attached with the project, you need to understand the role of your company and the share you would be drawing. It should not happen that some other company puts the blame of their wrongdoings on your work. You also have to check how good your rapport with the other companies is. If you share an excellent relationship with them, then there is no problem with going for the deal but in case if you see people whom you do not like or who do not like you, it is better that you do not get yourself involved with it.

Always set up a back-up plan:-

A back-up plan is a much needed aspect when you are dealing with important projects that have severe financial implications on a company. In case if anything goes wrong with the preliminary plan, then the back-up plan can always be used to safeguard your interests and also ensure that the project is on line. You can encounter any form of challenge when you are dealing with an important project and being ready for it will only display your seriousness towards your work and your ambitions in life.

The zeal to achieve excellence can take a construction company to the next level

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Many experts in the construction domain are of the opinion that starting up a construction company is relatively simpler than to continue it. You may not have to experience too much of difficulties when you begin a construction company but when you are on it, you will face several kinds of challenges coming from all corners and in order to tackle them you need the ability to stick tight with your business and take rational decisions knowing the situation you are in and last but not the least do not lose any hope. The moment you lose hope is you lose everything.

Other than that, one more important attribute is essential when you start a construction company and that is the zeal to achieve excellence. You should always keep the flame burning within you and if it is on you will take your business to the heights you have always wanted to. It may take some time but not eternity.

We will be discussing few very important aspects that is required to take the construction company to the next level.

Giving more importance to quality work:-

When you are new in the construction domain, the one thing that will bring you in the limelight is the kind of work you deliver to your clients. In the beginning, it will be very difficult to get clients and if you do not have clients, you do not have work to do. Striving hard to gain the trust of your client should be your first priority and once you have their trust, it is very important that you keep his trust intact by delivering quality work. Once the client sets his trust on you, he may pervade the message to few other people who might then look up to you to complete their projects.

Create a brand name and have right set of employees:-

Once you start getting known for your work, it slowly develops your image in front of your clients. In other words, you are becoming a brand from thereon. When you started up your business, people hardly know you but your good work has helped you set up a brand and now you are known in the construction industry. Since your business is growing, it is now crucial that you hire the right set of employees who are as dedicated to their work as you are. Also ensure that once you have the employees you were looking for, never let them leave your company out of dissatisfaction. Try to keep your employees happy and if they are content, it will be reflecting in their work.

Have the right set of heavy equipment:-

When you are in the construction domain, having the right set of heavy equipment can definitely make your career. For that, you need to have a basic understanding of heavy equipment and its utility. Pick the machines keeping in the mind the kind of projects you have in hand. They are pretty expensive machinery and buying anything that you do need can have an adverse impact on your business.

Related articles across the web

Know the construction business well before you start one

Before you put your hand in any kind of business, it is first important to know a bit about the business. Not all businesses are the same and therefore you need to prepare yourself as per the needs and wants of the business. To become an expert in any trade is always a plus but there are few trades that expect you to be an expert. Anything short of that can put you in trouble once you have started your business. In order to overcome any business hurdles, it is necessary that you be ready with the insights of the trade so that when needed you can take the correct decisions and also do not make unwanted blunders.

Construction business in specific, you got to be very sharp while taking decisions. Any incorrect decision can prove to be very costly for your business with irreparable losses. Though the construction business can be very fruitful and also a very profitable business but it comes with a price and the price is if you take any incorrect decisions, it can ruin your business and can completely destroy your career in this industry. Therefore, it is advisable that you take some time out to first learn the tricks of this trade and then once you feel comfortable, you can begin your business.

Try to know how the business works:-

In order to run any form of business, you should first try to know how to run the business. For that try to work in a construction company for the first few years and learn every possible thing, right from getting clients, acquiring business from them, knowing the right amount of capital to be invested in the project, wages to be paid to different employees etc. This means that you have to work for few months in each department and try to learn things there. You may not know everything in detail but knowing a bit of everything will really help. You will get a fair idea about this business and can then give a thought to the fact that if this trade really your cup of tea or you should just restrict yourself in working with one such construction company and get fat package.

Pay good attention to the administrative and finance department:-

The administrative and the finance department of a construction company are like heart and lungs of a human body. They need to function thoroughly and any mistake on their behalf can really have a toll on the company. They both need to work in close sync with each other so that everything is in place and there are no chances of any fallbacks. You can get to learn a lot from these 2 departments on the entire working of a construction company. If you get the chance to be a part of the finance team, you will know the package that an operator as well as a laborer draws and working in the administrative department, you will learn how to take care of the various needs of the employees.

Learn every small thing that you can and only when you feel that you can start a venture of your own, give it a shot.

Keep a track on your finances while spearheading for any expansion plan

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

When you think of expanding your business, it means that you are having sufficient money to let you think about it. It would be absolutely naïve for someone to even think about expanding his business without having enough money in hand. The other option would be to take loan from financial institution. However that will cost you interest that you will be required to pay for the next many years. Taking loan can’t be termed as a bad option. It is just that one should go for this option only when it is really needed. As long as they can do with the money they have in their account as surplus, they should try to take care of any expansion plan with that.

We will be discussing few very important points that one should take into consideration before they decide to spearhead for any business expansion.

Multiple projects should be avoided without adequate resources:-

When we talk about expanding our business, we have to pay a lot of heed to the fact of having enough resources to take care of the extra project. You can’t sign up with a company and commit them of completing their project if you do not know whether you have adequate resources in hand. One of the major components that come under the word “Resources” is availability of finance to fund the project. You just do not want to start up with something and then get to know that you are unable to carry it along due to scarcity of funds. That will be a nightmare both for you and the one who gave you the business. That will also go against your goodwill and will deteriorate your relation with your client. You definitely do not want that to happen with you.

Knowing your finances helps you to take better decisions:-

You can take better decisions when you know how much money you have that you can utilize for your business. Remember, you also got to meet your financial responsibilities with your existing company like paying salary to your employees, taking care of operating and non-operating expenses and many other expenses that probably your accountant may keep an account of. It is better that you call up a meeting and take detailed report from all the departments. Understand the immediate financial requirement of any department and once you have taken suggestions from every corner, you decide what should be your next step.

Turn up to a financial institution if you really have to expand:-

At times you may get an offer than would be too lucrative and naturally very hard to resist. You will certainly not want someone else to bag it instead of you. In situations like these, you may turn up to a financial institution to avail loan from them. However, before you do so, have a small talk with your business advisors and check what they feel about the project. In case, if they all are positive about it, you may take a shot.