Looking At The Market For Construction Equipment Sales

Heavy construction equipments like Skid steer, Dozer, Excavator, Wheel loader are required in all parts of the world. Their demand has increased all the more after the growing economy in the Indian sub-continent, Middle East, Far East and Oriental nations as well.

Countries like China, Singapore, etc. are developing at an exponential rate in the area of infrastructure development. Chinese infrastructure has become so strong in the recent past that even the interior cities and remote areas are also well laid with clean broad roads, buildings, shopping malls, bridges, etc. All this growth has let to increase in the construction equipment sales.
Construction equipment sales had been most in the western regions in the decades of sixties to mid-eighties. But in past twenty years the economical growth in the eastern part of the globe had been exponential. The rise in the middle class and better earning resources has led to the growth of the economy. This growth has called for more development of residential and commercial outlets, etc. The increase in the development of such outlets has led to increase in the construction job works. These job works have adapted to the changing developmental pattern thus construction equipment sales have gathered pace equivocally.

More and more builders and architects have come together and large construction companies have built boulders all along the economical growth. Huge towers, shopping malls, big broad roads, expressways, highways, bridges, flyovers, etc. have led to the increase in construction equipment sales. Since all this development work calls for larger companies to shoulder all kinds of job works, many companies have made strategic partnerships, joint ventures, governmental bodings and alliances with the domestic counterpart for better growth. All these large companies have built up their own construction fleet along with the construction specific manpower.

These construction equipment sales are usually related to the iron and steel prices. Since there have been more excavations for the iron ores and new outlets, iron and steel market has grown at a healthy pace in these developmental decades. The large projects require heavy capital investments. In developing countries the cyclic rotation of capital is more regulated and strategic. Thus the investors are able to opt for large borrowings and generate their own capital for purchase of heavy construction equipments. Thus the heavy equipment sales in these countries are more properly funded and less prone to financial risks.

In case of construction equipment sales pricing is also an important factor. It determines the extent of sales or whether the constructor would prefer to go in for rental equipment. Pricing also acts as a determinant of demand in the market. Demand is led as per the specific country, availability of these equipments in the region, prices of iron and steel, etc. moreover, for the construction equipment sales financing of the purchase of the construction equipment acts as an added advantage and gives a competitive edge in selling the equipments. Financing the purchase leads to increase in the construction equipment sales of the equipment manufacturers.

Thus construction equipment sales are more or less directly dependent on the pricing structure and financing available, as it gets included in the project cost. These sales are more prevalent in the growing economies where more infrastructure developments regularly take place.

Finance For The Construction Industry

Why finance is so important to the construction industry:

 • The raw materials are expensive. The materials utilized in the construction industry: steel, iron, cement, bricks, stone, concrete, glass, and heavy equipment like cranes, concrete mixers, dozer, excavator etc., are all costly. To minimize costs, bulk purchases are made and sometimes cash payments are made to take advantage of discounts. This places a high demand on the businesses cash flow. Sometimes, for very large projects, finished blocks of the project are sold, in order to finance the completion of the other unfinished blocks. In such a situation, availing construction finance service from a financial institution proves to be very helpful.

 • The labor cost is immense. The highest cost in the construction industry is for labor. Skilled, semi-skilled, and daily wage labor, in large numbers, have to be employed for the timely execution of the project. Labor costs drain the cash flow, and if proper financial planning is not in place at the time of placing the tender, then the construction company can face a very serious financial crisis. This situation can be transformed by taking construction finance from a financial company.

 • The bid may be an underbid. To win the project, an underbid may be placed, which subsequently demands a tight inventory control, and a tighter cash flow. The strain is enormous and any miscalculated move may result in losses. The situation can be alleviated by taking construction finance from a company that provides finance for the construction industry.

 • Clients may become bankrupt or insolvent. Sometimes, clients become insolvent and thus cannot honor invoices. To avoid such bad debts, many finance companies offer bad debt protection services. The finance companies take the risk of non-payment and charge a nominal fee for this service. Moreover, coupled with invoice discounting or factoring services, almost 70% of the invoice amount is immediately available for use. This improves the cash flow and can provide resources for further construction projects on other sites. With bad debt protection services, blocked cash is freed up, management time is saved, and peace of mind is achieved.

 • Extra work is a rule rather than an exception. In the construction industry, clients expect extra work to be performed at minimum or no extra cost. Unless there is reasonable evidence to prove that the extra work has been performed, most likely, no payments will be made. This situation can be controlled by invoicing the client for the extra work, supported by reasonable evidence, and availing a construction finance service with debt protection service from a reputed finance company. The finance company releases about 70% of the payment immediately to improve the cash flow and chases the client for payment of the extra work performed. This results in peace of mind. Bibby Financial Services provides finance for the construction industry. Our construction finance solution improves your cash flow and saves you valuable management time.

About Caterpillar, Allison, Komatsu Transmissions

Businesses and organizations in many different industries consider original and rebuilt Caterpillar transmissions to be the best when it comes to heavy-duty parts. They aren’t the only manufacturer, however. These equipment components are integrated with other power and drive train parts to give large equipment the power and precision needed to get even the biggest jobs done.

While industries such as mining and construction are the first that come to mind when looking at these precision parts, others rely on the products Allison, Komatsu, and Caterpillar produce. The quality of their products is pivotal to the success of original equipment manufacturers (OEMs). Here is a quick look at some of the power train parts these three big names produce, their innovations, and benefits.

Their transmissions make Komatsu transmissions famous in big industries such as mining equipment. The innovative oil immersing bearing heating systems make these power trains long lasting and highly effective. The WA500-3 wheel loader they produce changes its gear ration automatically to keep strain off the rest of the parts in the vehicle while optimizing its fuel efficiency. The clutch pressure is also automated to eliminate hesitations and jerk in the gearshift. The D155AX-5 crawler dozer is designed to maximize the product of the entire machine by giving this machine a total of six gears - three forward and three reverse.

Construction, mining, agriculture, forestry, and many other industries use a Caterpillar transmission to haul, lift, push, and work. The OEMs and other businesses in need of heavy-duty equipment use these power train parts because they are designed to last while hosting a range of options that increase the usability and efficiency for a range of specific applications. Regardless of whether it the premier manufacture or a rebuilt, Caterpillar transmissions offer gearing specifically designed to maximize the potential of every use and industry.

Allison adds electronic options, features, bodies, and drivelines to their power train parts. This puts the optimum efficiency, precision, and productivity in their power train parts on top of their extended life span. In all, Allison has more than 40 years experience in designing and manufacturing automatic gearing. Allison is perhaps best known for its 1000 series. This product line has 610-780NM torque range. When this is added to a horsepower range of 149-224 it is pure, precise muscle. These are found in equipment such as large passenger busses and garbage trucks. Their 4000 series product line has both a wide and narrow gearing ratio to match up in a wide range of equipment. Their unique design gives heavy-duty equipment full maneuverability despite the increase in power. This series also gives OEMs and individuals the choice of having an integrated output retarder to increase its breaking ability. Allison premiered its new hybrid models designed specifically for passenger buses in 2003. There are now 2 700 of them in use in public transit systems throughout the world.

These power train part manufacturers have all become leaders by building quality parts that last. If they do stop working properly,Allison, Komatsu, and rebuilt Caterpillar transmissions are available that have been remanufactured and undergone failure testing and quality control procedures to ensure they are as high in quality as the original version. Regardless of whether they are new or rebuilt, these top of the line manufacturers have achieved long life, efficiency, and precision with their unique and effective designs.

Three New Komatsu Dozers Supplied To SoilCon

The Soil Conservation Service operates from 37 locations around NSW, providing a range of services specialising in environmental protection, rehabilitation and land management.

It offers a complete range of professional and technical services in erosion and sediment control, soil and water testing, land assessment, water supply, rehabilitation and revegetation techniques.

The service’s conservation earthworks operation is centred primarily in the tablelands and grainbelt of NSW, where farmers are working large, gently sloping lands, Broadbased banks, waterways and farm dams are typical works undertaken.

“Around 75% of our work is for rural landholders, with the balance being environmental works for a range of clients including the catchment management authorities. We are very strongly involved with the environmental rehabilitation of degraded lands, including mine site”.

Soil Conservation Service operates 40 dozers in the D5-D6 class, along with a number of excavators, and is believed to be the largest operator of this sized dozer in the southern hemisphere, if not the world.

It has just leased two new Komatsu D65EX-15 dozers, plus it has a third one on loan.

In addition, it has five other D65EX-12s in its fleet, along with four D53A dozers delivered during 1990 and which have up to 20,000 hours on them - a total of 12 Komatsu equipment dozers in the fleet.

“We are now phasing out these D53A - they are getting on, but they’ve been a pretty reliable tractor over the years - and we hope to replace them with similar size dozers,”

“That smaller size is particularly well suited to our kinds of work.

“Over the years we’ve had a great experience with our D65EX-12 dozers; one is still on lease, and the other four we purchased from Komatsu when they came off lease,”

“The backup and support from Komatsu has been very good; the support and service provided by Michael Edwards, our local representative has been excellent - it’s probably been better than other suppliers.”

In addition to the Komatsu dozers, the Soil Conservation Service  has a PC200-6 and a PC220LC-7.

The PC200 is currently working in the Hunter Valley placing rock and revetment work at Hexham.

The excavator is regularly employed in flood mitigation maintenance works in the Hunter and following the severe recent floods in the region will be occupied for some time on repairs to damaged infrastructure.

The PC220 has been working in our southern region earthworks program, working on farm dams assisting one of our new D65s and general earthwork projects which will include works associated with the Hume Freeway extension, an $800 million RTA alliance project.

Bulldozers - Powerful crawler equipment with a blade

Powerful crawler equipment with a blade is called a bulldozer. Even though any heavy engineering vehicle is known by the term “bulldozer”, practically the term refers only to a tractor with dozer blade.Earlier tractors were used to plough the fields and the first bulldozer was adapted from this tractor. During the First World War a bulldozer was used as an armoured tank because of its versatility in grounds which were soft.

A big thick metal plate is fixed on the front of the bulldozers for use in earthmoving jobs, raising dams and digging canals. As the tractor advances, the blade in front removes layers of soil. To move coal in the coalmines, to move large boulders or cut tree stumps various specialized blades are used. Earlier, the driver used to sit on top of the bulldozers, which lacked a cabin. When powered down bulldozers were introduced in the 1930’s it became the excavation equipment preferred by contractors.

When equipment was needed to execute large-scale earth works, several bigger models were manufactured by various engineering firms. These machines were noisy, large and powerful and that’s where it got its name “bulldozer”.More powerful engines, better tracks, more reliable drive tracks, raised cabins and instead of the usual cable operations, hydraulic arms were some of the important improvements included in the bulldozer development. More precise blade manipulation was made possible by hydraulic systems. To loosen soils which were rocky, or for pavement bread-up, a ripper claw was also added to bulldozers.

Throughout the world, these durable and tough machines are used by construction units of the military, they are also the preferred equipment for civil construction. Some of the other uses of bulldozers include demolition of enemy structures and clearing mines.The tracks on the bulldozers give good hold on ground and easy mobility over rough terrain. In order to prevent it sinking in muddy or sandy ground, the wide tracks help the distribution of the weight of the bulldozer over large area. The torque divider in the bulldozer converts its power into ability to drag.

The power of the bulldozer can be gauged by its ability to tow tanks weighing around seventy tons. Areas of obstacles such as shrubbery, and burnt vehicles can be cleared easily.

Over time, bulldozers have been further modified to become a new machine capable of working in various ways which was not possible with the original bulldozer, for instance a hydraulic arm and a large bucket, which can be raised or lowered to scoop earth and load it into trucks.

Types of Construction Equipment and Their Uses

Construction equipment range from the very heavy equipment to the portable and mobile lighter equipment, some of them with a precise description of their functions are detailed below.Engineering equipment with a front bucket/shovel and a small backhoe in the rear combined with a tractor is known as backhoe loader. It is mostly used in small construction sites and in urban engineering such as fixing city roads.

A crawler, which is very powerful and attached with a blade, is called a bulldozer. Even though any heavy engineering vehicle is known as bulldozer, it is actually a tractor with a dozer blade.Combat engineering vehicles are used for engineering work in the battlefield and for transporting sappers. They are mostly armoured vehicles.A compact excavator is a wheeled or tracked vehicle with a backfill blade and swing boom. It is also known as mini excavator. The functions and movements of the machines are carried out by transferring hydraulic fluid. This makes a compact hydraulic excavator different from other construction equipment.

To compact gravel, dirt, asphalt and concrete in construction work and road laying a road roller which is also known as roller-compactor would be used.A motorized cultivator with a rotating blade to work in the soil is known as rotary tiller. They are either drawn behind a tractor or self-propelled.A crane is a derrick or tower equipped with pulleys and cables for lowering and lifting materials. The cranes used in construction industry are mostly temporary structures.Dragline excavation systems are heavy equipment mostly used in surface mining and civil engineering. The smaller type of dragline excavator is used for port and road construction. The larger type dragline excavator is used in strip-mining operations for coal extraction.In the building industry, to make foundations, a drilling machine is used. It is also used in oil wells and water wells.

An excavator commonly known as a digger is an engineering vehicle, with a cab mounted on a rotating platform or pivot, and a backhoe on top of an undercarriage with wheels or tracks.

In untamed regions which are being reclaimed for construction, a feller buncher, a machine having an attachment, which fells trees, is used.A forklift, lift truck or forklift truck is an industrial truck used to pick up and transport heavy material using steel forks under the material to be lifted. The most common usage of a forklift is to move materials stored on pallets.

A loader also known as a bucket loader, front-end loader, scoop loader, shovel, or front loader is a type of tractor using buckets, which can be tilted to lift and move material.

A paver is used to spread asphalt on roadways.