Tag Archives: heavy equipment

Used equipment can be economically viable for your company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Buying used construction equipment or a brand new one has been the topic of debate for years. Many experts feel that one should go for brand new equipment as they are installed with latest technology and one may find it far convenient to work on a new machine than a used one. However, others share a different opinion altogether. They feel that for new construction companies, it would be rather difficult to buy new machines as that can push them towards financial debts if they are unable to pay their monthly installments. Even if they manage to buy the machine outright, there are still high chances that they may drain away all their resources and end up borrowing to meet other business requirements.

It is difficult to judge what one should be doing as decisions should be taken based on the circumstances in which a person is. Let us assume that the construction business owner has surplus reserves and will have no problem if he pays the entire money in cash. Well, in this situation, he needs to analyze if he may need to pull out anything from the surplus to meet any of his business requirement for the next 9-12 months. In case if he feels that there may be a need for him to take some cash out and by investing the money in buying equipment can lead to financial difficulties later on, he should abort his plan to buy the equipment outright. But if he sees no encumbrances then he can make his way ahead to buy the machine.

Small construction companies should primarily focus on buying used equipment as that will not cost much to them. Used construction equipment can be bought at a reasonable price which they can easily afford. Nevertheless, the drawback a used construction equipment will have is that it will not have the advanced technologies installed in it that a brand new equipment will have. This will be a bit of pain to the operator and slightly more pain if he is accustomed with operating on new machines. He may not find it convenient to operate the machine like he used to with the newer ones. But if the operator can work on both old as well as new equipment, he will only need some days to get accustomed to the older version.

The other hurdle that a small construction company experiences quite often is with managing its finances. If they are not so financially stable, then it is never recommended for them to buy a new machine. That will only increase their business debts and it takes a long time to clear them all. They also have to do a bit of research work trying to know the lender who can offer them loan at the most affordable rate of interest. Now most of the small construction company does not have the time to do any of these research works. Therefore, it is prudent that they stick to the used machines and once they feel that they are getting financially stable that they should think of going for a new one.

Heavy Equipment Broker/Trader

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

For construction companies, it has never been easy to buy good heavy equipment at a lesser price without the involvement of a broker. When they are looking for heavy equipment, the first choice of theirs is to catch hold of a broker who can understand their requirement and accordingly can fetch a machine at an economical price. Simultaneously, when someone wants to sell their used heavy equipment, they find the most convenient and simple way to sell it is through a broker. The broker is the person who is aware of who needs what and he accordingly sets things and can clear the deal. Locating a broker will not be a difficult task you can find them on their websites. If you do not have their websites, you can simply google and search for them there.

We will be discussing why one should approach a broker when they can directly buy heavy equipment from the company.

They can simplify the process:-

Buying heavy equipment which is undoubtedly a very expensive piece of metal may not be a simple process as what many may perceive it to be. Different kinds of customers may have different issues and it may not be possible for the heavy equipment manufacturing companies to go through the issues of the customers in detail. If they find anything fishy, without further investigation they may reject the sale. Thus the buyer as well as the seller both are at equal loss. In such a situation, a broker can step in and look into the matter. There are area specific brokers who can sit down with the potential buyer and explain the formalities and eligibilities of buying a construction equipment. He will also check in advance if there are any possibilities of the sale getting rejected. He will go through the documents and then approach the company. Since he has studied the case, he will be in a better position to take things from there and process the sale.

Can clear the legalities involved:-

While processing the sale of heavy equipment, they come in several legal stuffs which a normal construction business owner fails to understand. At times, he may not even be bothered to read the terms and conditions of the heavy equipment company and may just go through the verbal communication. Later he may find himself in a tight spot leading to more complications. In such a situation, a broker comes handy. Since he understand what legal problems may arrive in future, he informs the buyer about it well in advance and ensures that he does not do anything that can lead to unwanted problems.

Understanding the need of the buyer:-

This is perhaps the most important aspect why a buyer needs a broker. Many of the time, the buyer may not know which heavy equipment he should be buying. He may not completely understand the requirement of his project and may end up in a haphazard purchase. A broker on the other hand can spend some time with him going through the project he has and understanding the kind of heavy equipment he should be buying. He can then advise him the machines he should buy and simplify things for him.

 

 

Related articles across the web

How to protect your heavy equipment against theft

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

A construction business gives a lot of importance to its heavy equipment as they understand how crucial it is for the smooth running of the business and which is why they take every care to ensure that it works fine all the time. They take necessary steps to keep the equipment well maintained, service it at regular intervals and if they see a need to replace any of the faulty part with a new one, they do it immediately. But there is one particular thing which not all big construction businesses give due importance to and it is protecting their heavy equipment against theft.

There have been a lot of instances of theft in many parts of US and the number is simply rising. The cops are also having a hard time to get hold of the gang who is into this. So it becomes the responsibility of the owners to take utmost precaution of their equipment when it comes to theft. Please do not consider it to be a trivial matter. There is a parallel industry operating who are into selling stolen machines at a considerably cheaper rate. The modus operandi is fairly simple. They first lay their eyes on machines that are not sufficiently guarded. Once they have identified such equipment, they do a thorough study of the zone and chalk out a plan to get it out safely from the zone without letting anybody get a sniff of it.

Let us now talk about the solution. First and foremost once you buy heavy equipment, ensure that it is registered with National Equipment Register. They are the organization that preserves the databases of heavy equipment. So in case if your machine gets stolen, you can raise an alarm and let the cops know about it. The cops will then get the relevant information from the National Equipment Register’s office and will find it helpful to track down your machine.

It is also crucial to do a background verification of all your employees. It is not that your employees will steal the machine but they can turn out to be an accomplice. The gang ideally will first send one of its members to your company and will get employed as a laborer. But his main intention is to know how well you guard your equipment and will try to draw loopholes. Taking benefits of those loopholes they will hatch a plan and execute it before you even get to know anything about it. Therefore, doing stringent background verification is way too important.

You got to keep the jobsite well-lit at all times. Thieves can make good use of darkness and can steal away any heavy item. They are smart and therefore you got to be smarter. If possible, install heavy duty cams all around the jobsite whose visuals shall be monitored inside the security cabin so that they get to know who is doing what with the machine. Following these basic steps can help you in a big way to keep your heavy equipment safe.

Heavy equipment listed on Craigslist

With the introduction of internet, businesses have taken a new shape and most of the things are now happening on the net. You need to contact somebody or write a letter that needs to reach him immediately internet is the answer for that. Whatever information you are seeking, you can get it all on the net. It provides you with a wonderful virtual world that helps you to get anything under the sun. This has also helped the heavy equipment industry big time. People who are in the business of buying and selling heavy equipment can all come under one roof and accomplish their wants. It has given a wonderful platform to both the buyer and the seller.

There are number of websites that deal with buying and selling of heavy equipment but the one the ace the list is Craigslist. This website particularly deals with heavy equipment and if you are unable to find a machine is any website, you can expect to find it here. They are in this business for the last many years and are only getting stronger with every passing day. Many people have made millions with the help of this site. Though there are also some instances of fraud that took place under the name of Craigslist but it seems that the concerned authorities have taken this seriously and have streamlined the process of buying and selling.

Become a member of Craigslist:-

In order to list item on Craigslist, you got to become a member of this website. The registration is for free. However, if you list machines on the website, you got to pay an amount to the website and for every sale you got to pay some extra fees to them. Apart from that, it offers you the service of highlighting your listing so that it catches the attention of the viewers. You got to pay a very nominal price to avail this service. It seems that people who have availed this feature are more successful in selling their heavy equipment as compared to the ones who have not taken this up.

Protects the interest of both buyer and seller:-

Craigslist believes in protecting the interest of both the buyer as well as the seller. Sellers can’t get away easily by selling a faulty machine on this website. One complaint can ruin the prospect of the seller to list any more items on the website. This is the reason why sellers ideally stick to what they have described on the listing. They do not dare to sell faulty machines on this website or else they will not only lose the money but will also lose their reputation. On the other hand, buyers also can’t get away without paying for the machine. They have to pay the money first and then the seller ships the machine. The shipping cost and other miscellaneous expenses are worked out amicably between the buyer and the seller.

Overall, Craigslist has made a good reputation in the online business platform.

Related articles across the web

Learning heavy equipment will be fun with the help of training videos

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Learning new things are always fun if one can add the fun element in it or else it may lead to boredom and one may lose interest from the topic. Therefore in order to add the fun element, a lot of unique stuffs can be added in the subject thus making the subject simple to understand as well as interesting. It has been observed that people learning about heavy equipment can at times find the subject to be quite boring and may completely lose interest from the topic. It is due to the complexity of the subject. You always deal with machines that are not so simple to understand and especially when you got to understand them just by reading it from a book concentrating hard to understand the diagrams given in it, it becomes all the more boring.

Just to make things a bit simple, you can take help of the training videos that are uploaded on the internet. You may find them to be really awesome and helpful. You only got to key in the stuff that you want to learn and it will throw you all the videos it has pertaining to the subject. Click on either of the video and watch it fully. Now when you see things happening in front of you, you will not find it difficult to co-relate the things that you have read in the book. You may possibly learn a few things more by watching the video that you may not find in the book.

Some of the training videos are free of cost while some others are chargeable. However, once you access the videos you will be informed that if you want to learn more about the subject then you got to pay a subscription fee to the uploader. In case, you want to check out more on that, you can pay a nominal fee that is mentioned at the end of the video and download the chargeable video on your computer.

For instance, you want to know how to change the engine oil in a wheel loader, you just key in the stuff you like to see in the search bar and it will throw all the videos that are concerned with the subject. You pick up the one you want to see and watch the complete video. In case, you feel that you want to see other videos as well, you can go back to the main page where you will find the list of videos and then select the next one. It gives you ample of information, something that you will not be able to find in your academic books.

You can always be a step ahead than your peers if you follow the videos properly. Your understanding on the subject will be far better than the other guys studying with you in your institution. Ultimately, it will give you an edge over the others when it comes to getting a good employment with a company. You will find yourself to be in a much beneficial position than the rest of the guys.

Related articles across the web

Fuel price affecting the construction industry

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

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

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

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.

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.

Related articles across the web

Heavy equipment with latest technology is an asset

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

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.

Related articles across the web

Have the other two talk about renting different pieces of equipment

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

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.