Volvo’s Reputation In Construction Machinery Segment Growing With New Products

Most people think of cars and trucks when they hear the name Volvo, but the company is also one of the larger and faster growing construction machinery suppliers in the world. Indeed, it can be compared to giant companies like Komatsu equipment, Caterpillar and Deere. Volvo’s construction equipment for sales.

That are expected to top $2 billion for the first time, versus sales of $1.9 billion and $1.2 billion. About 23 percent of those sales are generated in North America, while the largest portion of sales (about 60 percent of the total) comes from Europe.Volvo has always had an excellent reputation in the construction machinery industry. The company is managed from its headquarters in Brussels, Belgium, with production facilities in Brazil, Canada, France, Germany, Sweden and the U.S. The North American operations consist of Volvo Construction Equipment North America, Inc., located in Asheville, N.C., and Euclid-Hitachi Heavy Equipment, Inc., in Guelph, Ontario, and Cleveland, Ohio. Volvo Construction Equipment is responsible for the marketing and product support of the company’s business in the U.S., Canada and Mexico. Euclid-Hitachi oversees the development and manufacturing of rigid haulers produced in Canada.Volvo was known as VME. VME was formed, through the combination of the construction equipment divisions of both Clark Equipment and AB Volvo. Clark announced its intention to sell its entire interest in VME, so Volvo management reached an agreement to purchase Clark’s 50 percent interest for $573 million as part of its strategy to concentrate on the automotive and transportation industries. The company, renamed Volvo Construction Equipment, was consolidated June 30, 1995, at which time it became a wholly owned subsidiary of AB Volvo.Within the rigid hauler business, Volvo has a joint venture with Hitachi - Euclid-Hitachi - of which Volvo owns a 60 percent share. That venture was formed. The company also owns the German company, Zettelmeyer, which became a wholly owned subsidiary.Volvo acquired Groupe Pel-Job, a French manufacturer of mini-excavators for sale and a leading supplier of those machines in Europe.Volvo is the world’s leading supplier of articulated haulers, and it is a major producer of rigid haulers and wheel loaders. The company also produces hydraulic excavators - a product area it is planning to revamp completely during 1997 - and mini-excavators produced by its Pel-Job subsidiary.44 percent of the articulated dump trucks manufactured in the world rolled out of Volvo factories. It’s nearest competitor, Caterpillar equipment, accounted for about 25 percent of the market.The wheel loader product line has always been a mainstay for Volvo. Again, the company is a leader in this market, accounting for 10 percent of total industry production and sales annually. Caterpillar and Komatsu, the leaders in wheel loaders, together represent 40 percent of the world market, followed by Volvo in third position. In the North American market for wheel loaders, Volvo accounts for about 11 percent of the market.

Machinery- a Perspective Market in China

The construction equipment industry has a major bearing on China’s manufacturing industry.China’s machinery industry accounted for 17.0% and 10.6% respectively of national sales and exports. Rapid economic development in China has led to a corresponding increase in industrial machinery. Almost all leading international players have formed joint ventures in China including John-Deere, Daewoo, Hitachi, Parker, Sanyo, ABB, Emerson, Siemens and Volvo.

Chinese machine builders are also enhancing their international participation through larger exports as well as a higher degree of internationalization.In the near future, China will be an important player in the global industrial machinery marketplace.

Representative Machinery

1. Agriculture Machinery
Today China’s agriculture is a new era of historical development. In a long period of time from now on, expanding operating scope, industrialized management, sustainable development, and scientific and technical innovation in agriculture shall be the four tendencies and driving forces. The development and adjustment of economic construction in agriculture requires higher level and larger scope of mechanization.

2. Construction Machinery
Construction machinery is the largest customer of hydraulic products, which makes up about more than 40% of the total market volume of hydraulic products. The percentage shall further increase in the future. China is in an extensive developing and constructing period, thus the demand of construction machinery in the coming several decades will up, and China will be the largest market in the world.

3. Machine Tools
Along with the progress of manufacturing technique, China’s demands for high precision, high-efficiency CNC machines, is getting more and more. Now, in China there are about 3 million machine tools in use, and it is expected that about 4 million units machine tools will be in use.

4. Plastic Machinery
The demand for plastic products will increase remarkably to cater for the development in the fields of agriculture, automobile, electronics, light, foodstuff, packaging and construction industries and the improved living standard of the people as well. At present, the total output value of plastic in China has come to the forefront of the world, but the annual plastic consumption per capita is only 14.5 kg, less than the 20 kg world average annual consumption per capita and far from the 50 kg to 100 kg annual consumption per capita in developed countries.

5. Harbor Terminal Facilities
In order to meet the demand of domestic construction and enlarged export and import trade, task for building coastal port and inland port is very heavy, a great number of ship loaders, car dumpers, stacking machines and container cargo handling equipment will be additionally provided or updated.

6. Environmental Protection Equipment
In order to keep the development of economy, society and environment well coordinated, and make the ecological damages and environmental pollution well controlled, environmental quality and comprehensive utilization of resources are raised further, state will add the investment for ecological preservation and environmental protection. China is putting emphasis on developing: urban sewage and solid wastes disposal and comprehensive utilization equipment, urban and industrial noise control equipment and atmospheric pollution control equipment.

Construction Equipment - When It’s Good To Be Used

In today’s world, more businesses in the construction industry are finding it more financially beneficial to their businesses to aquire used construction equipment and used heavy construction equipment, when compared to buying them brand new. Most business managers prefer the low capitial investment when buying top quality used construction equipment at exceptional prices. Smaller construction companies are also finding it more beneficial to buy quality used construction equipment because of the low initial price and operating costs. These smaller companies are more able to keep an eye on how the used machines are maintained, so the machines are always in top quality working condition.

Rock and Dirt has one of the largest selections of new and used construction equipment throughout the U.S. As one of the leading companies, Rock and Dirt offers new and used construction equipment for sale and for rent. Offering a wide line machinery from dump trucks to back hoes from all the major manufacturers,e.g. Caterpillar, Bobcat, John Deere, Case, New Holland, Volvo and Hitachi. All new and used construction equipment is available for direct sale, rent, or auction.

Headwater Equipment Sales in Southern Alberta Canada was founded in 1997 dedicated to providing customers with quality machinery that looks good, runs well and sold at a fair price. Headwater Equipment is currently dealing mostly in late models of Caterpillar, John Deere and Hitachi used construction equipment. This company has enlisted a large crew of licensed mechanics, welders and painters with over 25 years of experience in general construction, repair and construction equipment maintenance of used construction equipment and other machinery. Selling more than just used construction equipment, Headwater also offers quality used parts and attachments for sale at fair prices. All used machinery, parts and accessories are cleaned and thoroughly inspected prior to every sale.

Iron Planet, founded in 1999 in Pleasanton, California has grown to be the third-largest auction company in the U.S. that specializes in a wide range of used construction equipment and trucks. Companies, as well as independent contractors, can choose used construction equipment from a full line of the top manufacturers. All used construction equipment are subject to a detailed inspection to assess the equipments actual condition. These inspections are presented free of charge for all potential customers to review before bidding on equipment. All inspections are performed by over 350 professional inspectors with an average of 23 years of heavy equipment experience and who follow a standardized and reliable method of inspection.

There are many good used construction equipment companies materializing across the U.S. and Canada, distributing used construction equipment throughout the world, through auctions, buying and selling. Through these companies you can find a great deal on used construction equipment, to rent, buy out right or to bid on. Through these same companies, you can also sell your own equipment for a reasonable fee and have your own used construction equipment available to buyers and bidders throughout the world.

Construction Equipment Parts

The secret behind running a successful construction business heavily lies on using the best construction equipment. Realizing this truth, the world’s best construction companies possess high-class construction equipment. Construction equipment is the best ally that a company can depend on. This equipment facilitates and provides the best assistance when working against a tight deadline. Some common construction equipment needed for any construction business includes bulldozers, wheel loaders, backhoes, pavers, excavators, cranes, and tractors, rollers, forklifts, trucks, generators, pressure washers, welders and air compressors.

Well-known companies such as John Deere, Volvo, Caterpillar, New Holland, Bell, Komatsu, Bobcat, Terex, Kawasaki, Hyundai and International Harvester manufacture construction equipment. They are the most popular and well known construction equipment manufacturers. These companies are known for making high quality construction equipment. Parts for construction equipment are as vital as the equipment themselves. Any breakdowns during work will seriously affect the work schedules.

Stocking vital equipment parts in adequate numbers will help in executing the projects on time. New parts or reconditioned parts are important equipment and should be in stock, as sourcing them at the time of break down would prove difficult and expensive. Many companies offer genuine high quality parts. Often they guarantee for high performance and long life. Keeping enough stock in their warehouse to meet any demand will be beneficial. Normally, most reputed manufactures have remanufacturing programs that takes failed components, fixes them, tests them, and then sells them as used parts.

Most of these parts will be like new ones and adhere to original specifications. This is a cost saving method for buyers without compromising the quality and contributing to environmental protection by reducing waste. Major construction equipment manufacturers have distribution networks that help buyers to get the parts as and when possible without wasting time which is crucial for their business. Online support systems help them in locating and transferring the parts which are in great demand in one place but lying idle in another place without any buyers.