HEAVY EQUIPMENT INDUSTRY RESOURCES

Global Report: The Heavy Equipment Industry


The heavy equipment industry has been experiencing a near 6% growth rate worldwide for the past ten years. Included under the heading of heavy equipment are machines such as the backhoe, crane, wheel loader, grader, forklift, and bulldozer. This demand is fueled by the need for new construction to accommodate growth, for the refurbishing of old projects and buildings, and for increased mining activity to provide raw materials for industry. The spinoff has also meant an increase in available employment in construction jobs for heavy equipment operators and maintenance mechanics, growth for parts manufacturers and distributors, and an increase in agencies providing operator certification.

While the U.S. economy is experincing a slowdown, Europe is expected to remain stable, and Japan, the dominant net exporter of heavy machinery in the 1990s, is expected to recover. This means that opportunities for increased sales globally will continue in the years to come, and with reductions in tariffs and duty-free movement between mature markets, the heavy equipment industry has become more streamlined and competitive. Manufacturers are able to limit the number of production centres and ship according to demand.

Because construction projects depend on heavy investment of capital, and are often of limited scope, many construction companies are choosing alternatives to purchasing their heavy equipment. Many companies choose to rent their machinery for specific parts of a project from specialized construction rental companies, while others choose to lease their equipment over several projects. Some of the larger manufacturers also run leasing and rental divisions, offering used heavy equipment for sale after 1500 - 5000 hours of service. Rentals can be a double-edged sword for manufacturers; the opportunity for increased business can sometimes lead to competition between new sales and used within a single heavy equipment manufacturer.

The increased competitiveness has meant a better product for construction companies and operators alike. New technologies have meant increased safety, comfort, and reliability. Advancements include air conditioned cabins, automatic transmissions, engine monitoring systems, noise reduction, and gps tracking systems for precision surveying. Some can even be programmed to repeat tasks or operate on driverless routes. Of course, these increased features require increases in training and certification for heavy equipment operators and companies alike.