Category Archives: Fuel

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.

Construction equipment fuel consumption chart

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While many construction companies are spending a good deal of money in doing some research work pertaining to what can be done to reduce fuel consumption and continue with the same productivity. They are yet to come out with some solid answers. Though many heavy equipment producing companies are already in the mode of producing machines that they claim are fuel efficient but it seems that in order to make it fuel efficient they have to cut short some features of the machine somewhere which is not appreciated by the construction companies. What the construction companies are looking for is a solution to this problem which does not compromise on the existing features. So you just can’t take away what you have already given in order to make lives a bit comfortable. It is perhaps not the way it works. The heavy equipment companies have to come out with some solid solutions that do not play around with what they already have.

This has led to the need of creating a chart so that the companies can analyze where things are going wrong and what they can do to fix it. They also have to keep into consideration the cost that they will incur in making a machine which is highly fuel efficient as that might not have proportionate number of buyers. So overall, they might find themselves to be in a bigger problem which they might never want to be in the first place.

Komatsu has introduced PC200-8 Hybrid excavator which shows an exorbitant reduction in fuel consumption. It claims that the Hybrid excavator is able to reduce fuel consumption by around 25% than the conventional excavators sold by the company. They are also planning to make their machines more eco-friendly. This has been a challenge that many heavy equipment companies are facing for many years. As per their claims, they also state that there has been a fuel reduction of maximum 41% on sites where the upper structure of the machine turns more often. In their tests they have taken 3 different types of companies. First is the one that deals with waste soil disposal, another is into civil engineering and the third one does sludge disposal. The PC200-8 Hybrid excavator has shown up to 30% fuel reduction in the first company, 31% in the second company and the maximum was 41% in the third company.

Simultaneously there are other heavy equipment companies that have jumped in the race of producing machines that are fuel efficient and also provides a great deal of comfort to its users. Caterpillar wanted to ensure that people keep their trust on its products and do not change their loyalties to other companies and therefore they have brought in a series of different kinds of machines that are fuel efficient. However, the next big question that comes up is that are buyers ready to pay the cost of machines that promises of fuel reduction. Well, there are few giant construction and mining companies that are more interested in saving fuel and hence they would like to go for such products but for the rest, they have to wait for the prices of such machines to go little down.

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Make Your Heavy Equipment More Fuel Efficient- Ways to Achieve This

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Fuel efficiency, off late has become one of the widely discussed issues around the world. Almost every second automobile that we come across claims itself to be fuel-efficient. But the question that arises here, why is fuel efficiency such a concern among people all over today?

Well, there are a number of reasons as to why fuel efficiency has become the norm of the day. For one, a fuel-efficient automobile makes sure that you save all those bucks that go into the fuel expenses of the vehicle.  With the expenses of fuel rocketing sky-high, it is not really surprising that most of the automobile owning population are now looking for a system that helps them save money. And fuel-efficient equipment is definitely one of the best ways of going about the entire process.

The second reason for opting for fuel-efficient automobile is the environment. The fast depletion of natural resources has led the global population to look for ways in which the remaining of it can be saved and thus, the advent of fuel-efficient systems.

Making Your Heavy Equipment More Fuel Efficient

It is a widely known and accepted fact that the construction industry requires a huge sum of money in order to get things going smoothly. And the heavy equipment being such an important part of the entire industry, adds quite a lot to the entire expense. And in such a situation, it is important for the people of the construction industry to come up with certain measures that help them reduce this expense and push up the profit scale. And it is in this regard that the construction industry is now making use of fuel-efficient heavy equipment. There are a number of strategies that they have adopted in this direction.

  • Anti-idling policies

The idle time that every heavy equipment goes through contributes significantly to the entire fuel expense. It has been seen that the average 40% idle time that the heavy equipment goes through, besides being completely impotent also contributes significantly to the fuel expense. Hence, going for anti-idling policy can be a good way of reducing the fuel expense.

  • Making use of clean fuel

Construction authorities should also consider making use of clean fuel in their heavy equipment. Not only will this contribute to lowering the fuel expenditure, but will also make sure that the engine of the heavy equipment stays completely clean.

  • Making use of improved hydraulic steering mechanism

A recent research conducted by the Purdue College of Engineering showed that the use of efficient hydraulic steering mechanism developed by them helped reduce fuel expenses to a large extent. With the new improved mechanism, a significant 14.5% reduction in fuel consumption along with 43.5% improved fuel efficiency was seen in the heavy equipment.

Hence, one could safely conclude that the use of fuel-efficient heavy equipment not only helps in raising the productivity level of the heavy equipment, but also makes sure that the fuel that you put in is used optimally.

 

Reduce Fuel Costs and Push Up the Profit Margin- 4 Tips to Reduce Fuel Costs

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Whether or not a construction project will be able to meet the given deadline is a matter that heavily rests on the heavy equipment. If the heavy equipments function well, one can be assured of attaining appreciable results n good time. However, the rising expenses of the fuel have been successful in placing a frown on the foreheads of the heavy equipment fleet management companies.

Reducing Fuel Costs By Means Of Fleet Management Software

A study has revealed that a truck covers an approximate distance of 100,000 miles per year. Needless to say this distance results in a high fuel expenditure of a fleet management company. Heavy equipment, too, require quite an amount of fuel in order to keep things running smoothly. It can, therefore, be concluded that the cost of fuel that a company has to bear in managing the heavy equipment fleet is quite high. However, the heavy equipment fleet management software has proved to be quite a boon as far as decreasing the fuel costs are concerned.

  • It has been estimated that heavy equipment makes use of more than 685 million gallons of fuel per year when they are in an idling position. However, by making use of the fleet management software, you can ensure a significant reduction in the idling time of the heavy equipment and thus bring down the cost of fuel by a considerable margin.
  • There has been found many instances when a particular vehicle has strayed out of its designated track. This means that it travels extra miles and consequently spends a greater amount of fuel. By opting for the fleet management software, you can keep track of the equipment and can ensure that it does not leave its designated track. This means lesser number of miles and lesser fuel expenses.
  • Commendable driving skills have been seen as one of the best ways in which a heavy equipment fleet management company can bring about a significant reduction in the fuel costs. The fleet management software keeps record of the speed of the vehicle in question along which has been found to be a significant contributor to the amount of fuel burnt. The software allows the companies to track the speed limit, thereby, bringing down the fuel cost by a considerable margin.
  • Opting for the best route is another way of bringing down the fuel costs. The fleet management software allows the companies to map out the best route for vehicles, thereby, enhancing the optimal utilisation of the fuel. This optimal use of the fuel definitely contributes significantly in bringing down the fuel expenditure by a considerable margin.

One could, therefore, conclude that the efficient use of fuel is one of the best ways to bring down the fuel expenditure of the company. Fleet management software is one of the best ways in which companies could go on about it.

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Fueling Your Car By Off Road Diesel- How Is It Different From The Normal Road Diesel?

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The prices of all the items necessary for leading a hassle free modern life has sky rocketed in the last decade. And the fuel that is used in automobiles is no exception. In such a scenario, it is not unusual for you to seek cheaper options as far as running your automobile is concerned. And one such option that has emerged off late is the off road diesel.

What does Off Road Diesel exactly mean?

The very first question that must first come to your mind in this regard is what is exactly meant by off road diesel. Well, you must have come across a certain kind of red colored fuel in the fuel stations that are way cheaper than the normal fuel that you put in. Well, that is nothing but the off road diesel with a red colored dye added to it.

Road Diesel Vs Off Road Diesel

There must be a number of questions regarding the off road diesel that must be buzzing inside your head at the moment. And the chief among them must be with respect to the difference that off road diesel has with road diesel.

  • The off road diesel is not really that different from the usual diesel that you use in your automobile, except for the fact that it has a red dye added to it. So that’s Ultra Low Sulphur Diesel plus the red dye.
  • The second difference between the road diesel and off road diesel that one might point out is the fact that the latter is way cheaper than the usual Ultra Low Sulphur Diesel. You might as well seek the reason behind it. Well, the reason can be attributed to the fact that the off road diesel is eliminated from the need to pay road taxes. It is strictly meant for use in off-road commercial equipments, such as, lawn tractor, generator, bobcat and the like.
  • There is also the fact that the off road diesel cannot be put to use in automobiles that are operated on the road and are subjected to taxes.

Is It Safe To Use Off Road Diesel?

Well, that is a question that has been asked a million times by a lot of people.  The answer to this depends on the perspective from which the question is asked. If it is safety from the point of view of the fuel system, then the answer will be an emphatic yes. It does not matter what dye you have used in your fuel as long as the fuel is good enough. You can be sure of the fact that your automobile will run irrespective of the fact.

However, there is the legal perspective that needs to be considered as well. The use of the off road diesel has been strictly restricted from use in on-road licensed vehicles. So, if you have a licensed truck, for instance, you cannot really be said to be on the legal side if you are making use of the off road diesel.

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.