Category Archives: heavy equipment

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.

Looking to grow your business – Make use of LinkedIn

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

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

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

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

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

Joint Checks with Heavy Equipment Rental House and Construction Companies

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

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

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

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

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

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Make your career as heavy equipment designer

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When a heavy equipment manufacturing company is working on a state of the art machine, it also has to invest a lot of time and money in getting its design correct. On the other hand, it is the design that will accommodate the intrinsic features in the machine. Therefore there is a big market for heavy equipment designers today and they all are fetching handsome salary probably the best amongst everybody who are working in various other departments in the same company. The manufacturing company also understands the importance of designers and hence they are offering them high package and many other perks that others are not given.

Well, this will then give all of us the thought to become heavy equipment designer and flourish our career there. As a matter of fact, it is way too hard to become a good designer and the one who are not anywhere close to good at ideally kicked out of the company. This also gives us the impression that if you are unable to perform and show your skills then you do not have your place in the company and it is also not possible to move to any other company because you may not remain anywhere if you can’t perform. Therefore, it is not everybody’s cup of tea and only people who have the knack of designing machine or even parts of machines can see themselves working.

Institutes groom you for this industry:-

For guys who are good in designing stuffs and want to design heavy equipment can get themselves enrolled with institutes that teaches students different sorts of designing work. Now, they may teach right from fashion designing to animation, it depends upon the students where they want to go. So enroll for the right course. These institutes will groom you and make you a worthy designer. They will know your strengths and weaknesses and will work along with you to improve your skills.

Placements from institutions:-

They conduct some exams at the end of the course following which they give you grades and also invite companies to hire you. They have tie-ups with heavy equipment companies who come to their campuses and conduct interviews. Your grade and your performance matter a lot there. You get selected on the basis of your performance and the way you present yourself and your work to the interviewer. This is just the beginning to the world of a lucrative career.

Can work as a freelancer:-

A heavy equipment designer has to work for hours in a day and most of the time he/she is unable to give enough time to his/her family. Well, in a situation like this, he can leave the job and start working as a freelancer where he will just deal with one company at a time and once he is done with that company and intends to rest for a while, he has the liberty to do so. This makes him his own boss and he can run his business the way he wants to.

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Follow the basics to sell heavy equipment

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We often have the notion that in order to become a good seller, one need to be ultra-smart and should have the confidence that he can sell anything to anybody. Well, this notion is completely wrong. You can’t sell anything to anybody as long as the person does not see any need for that product. You can’t catch hold of anybody by his throat and compel him to by your product. That is just not the way how one can become a good seller.

Selling heavy equipment can become more difficult if you believe the notion of “anything can be sold to anybody”. You can’t step out to sell a crawler to a guy who works in a bank working as a home loan officer. It might even happen that he will pitch his home loan products and you may go for it. Simultaneously, if you try and push a guy to buy the machine, even if he has the need for it, he will not buy it from you. People usually dislike salesman who are pushy and prefer to buy stuffs from guys who will give them proper suggestion rather than pushing them hard to buy the equipment.

It is very crucial that you follow the basics of salesmanship and you will not find it a tough job. The skill to sell a product is equally important but even if you just stick to the basics, you may see that things are gradually falling place and in no time you will start hitting good sales figure. Let us discuss the basics of salesmanship and what one should know in order to become a master in selling heavy equipment.

Knowing your product well:-

You can sell something only when you are confident that whatever you are pitching to the prospect makes sense to him and for that you got to keep your product knowledge sharp and your communication concise. Do not over say anything as that may get you into unnecessary trouble and definitely do not say anything that you are not sure about. You try to take your prospect on a ride will only result in him taking you on a ride. Try to gain as much knowledge you can about the machines you are dealing with. Knowing the features should be sufficient if you are newly appointed by your company but as you stay in for a longer period try to learn the technical aspects as well. Experiences will always tech you more on how you can deal with different kinds of clients.

Understanding your prospects wants will fetch you a sale:-

You do not have to try anything harder to make a sale. The only requirement is you need to understand his needs. If possible take a tour of the equipment that he procures so that you make your ground strong and also buy the time to understand the areas where the prospect needs help. Most of the time, the prospect does not know what he is lacking and he will be really grateful to you if you bring him anywhere closer to that realization and eventually ending it up by buying the product.

 

Diminishing the ground pressure to increase efficiency

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

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

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

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

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Heavy equipment with latest technology is an asset

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

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

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

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

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Have the other two talk about renting different pieces of equipment

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Giving heavy equipment on rent is a very lucrative option when you are out of business or do not have many projects in hand. You will keep getting some money at the end of every month. Simultaneously, it is very important for the two parties to talk in clear terms about the terms of agreement. The owner of the equipment should make all his terms clear to the taker like how frequently he should be servicing the machine, how many hours he can make the machine work in a day and if by chance any accident happens then the cost of repairing the machine has to be billed to the taker. He cannot give the machine back to the owner in a damaged condition. It is advisable that they should make an agreement once they have finalized their talks so that their communication does not remain verbal and have some evidence to back.

At times, there are people who are particularly looking for a piece of equipment and not the entire machine. They may have the entire machine with them but just want to put an add-on which is perhaps missing in their machine. They just want to rent that piece of equipment to complete his work and then return it after using it for a couple of months. He may not have the need to use that piece for a year or so but the need may be very temporary in nature. Their needs may be unique and he may not always get what he wants. It is ideally that the guy who rents his machine would like to rent the entire equipment and not just the part. However, things are changing now and more and more heavy equipment owners are ready to rent pieces of their equipment to others.

The best way to know who is renting what is to search for it on the net. There the seeker may get plenty of options and can come down to the best suitable option. The online sites also offer the option to make the payment online and then the giver can ship the item to your doorstep. Nevertheless, before you make the payment it is important that you get in touch with the party and if possible inspect the item you’re willing to take on rent. It is only when you find the item good enough to take it on rent that you should go ahead with it.

It won’t be wise enough to make the payment before you even inspect the item or have a talk with the owner. Remember, having a clear communication is far more important or else it may lead you to bigger problems. Once you have talked about all the important aspects and are willing to make a written agreement on it, you can then go ahead and pay him/her online. Always make the payment of the item through the website as that will leave nothing at risk for you.

Top Selling John Deere Machines

John Deere has been a renowned company for the last many decades and they have maintained their reputation consistent in all these years. It is perhaps one of the companies that have managed to give tough competition to the leaders of the heavy equipment manufacturing industry. It has rather managed to show their presence in the heavy equipment industry and often come across products that others feel are highly advanced and that compels them to come out with something that is befitting to its product. John Deere never wanted to be the market leader but has always wanted it to outperform others and make its mark in the heavy equipment business. Today, they stand amongst the top selling brands and have scored good profits in the last many years.

Though the construction industry was quite volatile all across the globe, they still managed to keep their nerves cool and advance in a way that can keep the company floating during turbulent times. Not only have they capitalized in the construction industry but they have also made their mark in the agricultural sector. With the help of their tractors, famers are able to do their work with much ease and comfort and it also saves a lot of their time. Time is certainly a factor for the farmers as well as they need to bring the agricultural products to the main market on time and the heavy equipment produced by John Deere directly benefits the farmers there.

John Deere’s heavy equipment are sold all over the world and this time it was in the European Union that it made significant sale. They in fact became the household name as there were not many houses who did not own a machine of John Deere. In the year 2012, the total number of John Deere tractors sold in UK alone was 4,734 which is indeed a commendable figure. Not many heavy equipment companies have managed to hit this high volume during that year considering that 2012 was not an enthusiastic year for the manufacturing companies. It was John Deere that has managed to set aside all odds and sold high volumes of tractors that were above 50 hp.

This figure also suggests that John Deere has been the number one company for straight 14 years. This is a mighty achievement for any heavy equipment company who faces stiff competition from all sides. When you have companies like CAT, Hitachi, Komatsu and stuff, it gets tougher to get going. The year 2011 was better than 2012 as they were able to sell more tractors in that year. However as stated the year 2012 was invariably not a good year for the entire heavy equipment companies, it can be said that John Deere managed to not burn its finger in that year.

John Deere has its presence in many other countries and it seems that their sales are always top notch in whichever country they operate their business. Though they manufacture other machines as well, however it is the tractor that gets sold the most.

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

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

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

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

It should meet your business requirement:-

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

It should be economically convenient:-

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

Should be low on maintenance cost:-

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

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

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