What the Future of the Construction Equipment Industry Looks Like for 2021

Construction Equipment
Construction Equipment

What the Future of the Construction Equipment Industry Looks Like for 2021

With new developments taking place more frequently, the evergreen construction industry looks more promising than ever.

It’s important for manufacturers and vendors to understand the trajectory of this projected growth so that they can ensure their processes and end product reflect these changes favorably.

In this article, we’ll do exactly that. You’ll understand the reasons for expected growth, what areas of construction are doing well, what construction equipment is in high demand, and the impact of COVID 19 on the industry and manufacturers as a whole. 

Reasons for Construction Industry Projected Growth

According to statistics and market growth patterns, the global construction equipment market is expected to expand at a 4% annual growth rate in the next decade. This is despite a literal and proverbial roadblock in the form of a global pandemic.

There are a number of reasons that could potentially contribute to this projected increase:

  • Renovations and uplifts of old buildings is an increasingly popular development process employed by many countries. Tourism greatly benefits from well-maintained landmarks and historic sites which is why governments and agencies are willing to put a lot of money and effort into these uplifts. Some construction companies and equipment are specifically designed for this job alone.
  • Governments’ efforts to continuously build roads, railways and highways help drive sales and continuous growth.
  • The advent of new technologies like AI and IoT will make machines more capable and as a result, their services and the people who make them will experience an uptick in demand.
  • New businesses and avenues are created all the time, and many of the renovations, offices, buildings, and factories require the use of heavy-duty construction equipment.

These reasons are very general, of course, and there could very well be others that contribute to the growth, but the majority of it will be driven by the factors outlined above.

What Areas of Construction Are Doing Well?

If vendors understand what areas of construction will perform well in the future, they can model their production or rentals to reflect this. All construction projects are usually divided into either private or state procedures.

Private construction projects are the main contributors to general overall construction volume as many multinational companies have big ideas and even bigger budgets. Let’s take a look at some in demand private construction avenues.

  • Residential Construction – The demand for every type of housing is continuing to rise exponentially. Developed parts of cities have a need to make increased houses and apartment complexes for residents while less developed cities require construction equipment and services even more pressingly.
  • Commercial Construction – Buildings or similar structures created for commercial purposes fall in this category. There are a huge variety of opportunities in this segment which includes skyscrapers, grocery stores, shopping centers, private hospitals, private schools, etc. As overall global spending power increases, the demand for recreational buildings or even office spaces will continue to rise along with it.
  • Industrial Construction – This is a more niche segment of the general construction industry and because of the huge capital required for execution, isn’t very easy to work on. Industrial construction includes projects like power plants, manufacturing plants, factories, solar wind farms, etc. Though they might not be as executable as commercial or residential construction, the demand for bigger industrial projects is still high as industries have to keep their production processes updated which necessitates constant expansion and upgrades.
  • State Construction Projects – Projects that are commissioned or executed by a county, city, government board, or any other state-funded entity fall into this category. Railways, dams, highways, and airports are a good example. While the demand for such construction in developed economies like the US is fair, the demand in developing economies is huge. As these countries progress, they will require better infrastructure for their residents and the demand for construction equipment will rise along with this.

What Construction Equipment Is in High Demand?

Each project type requires specific equipment and procedures for execution but there are general pieces that are always relevant and needed. If you’re an equipment manufacturer then specializing or at least including one or all of these in your production will be a very fruitful investment:

  • Excavators
  • Loaders
  • Bulldozers
  • Concrete mixers
  • Scrapers
  • Dump Trucks
  • Forklifts
  • Graders
  • Cranes (mobile, crawler, tower, etc.)

Besides these all-stars of construction equipment, it might also be a good idea to look at some emerging technologies in the field.

Developments in remote-controlled equipment, connected machines, autonomous vehicles, and electronic power supplies are very promising.

Adapting or at least researching such developments could prove to be incredibly beneficial in the coming decade, especially for construction equipment vendors who want to stay on top of the competition.

How Does This Growth and the COVID 19 Pandemic Impact Small Construction Companies?

An increase in demand for construction will obviously increase the demand for the construction equipment required to carry out the construction too. Manufacturers would have their hands full and the growth rate for the industry as a whole is very promising and encouraging. At least it was until the COVID-19 pandemic started.

There is no question that the outbreak of the Coronavirus has hurt the industry significantly. Social distancing makes construction of any kind almost impossible to carry out and with less consumption happening throughout the economy, many corporate projects in the pipeline have either been postponed or discarded.

While this is a difficult time and situation for everyone, it’s important to realize that like all tough things, this will pass sooner than we may think. Sticking through this turbulent period could yield huge results. After a recession like the one we’re going through, economic boom and growth are almost inevitable.

When this happens, the demand for construction projects and equipment will skyrocket. This isn’t just wishful thinking as analysts and experts are echoing the same sentiments. The time period is still a little confusing, but the upside is certainly one worth waiting for.

If you’re interested in financing your construction equipment through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time tested, hassle-free, and convenient financing option for your next equipment upgrade.

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Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

Benefits of Purchasing Electric Vehicles for Construction

Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

Benefits of Purchasing Electric Vehicles for Construction

When you think of futuristic technology, what do you picture? If you see an electric car, you’re not alone! Electric vehicles offer an unprecedented opportunity to abandon fossil fuels without sacrificing speed or convenience. While most people picture such vehicles in the hands of ordinary drivers, they also have significant commercial applications, especially in the construction industry.

As a construction company looking to invest in new technology, electric trucks, cranes, and other vehicles should be at the top of your list.

 

The Many Benefits of Electric Vehicles

Electric construction vehicles and equipment are among the best investments you can make as a construction company. They aid your company on multiple fronts, including through:

  • Sustainable Branding– With electric vehicles, every time local utilities add renewable sources or improve efficiency, your carbon footprint will fall. Your company will thus continuously grow more sustainable over time. Not only is this a good in itself, but clients who care about the environment will be more likely to choose you, leading to higher revenues.
  • Convenient Charging– Electric vehicles prevent you from having to deliver fuel to your worksites, instead charging your equipment with power from the grid. And while it currently takes a long time to do this, recent advances in battery technology may soon allow you to charge in as little as five minutes. You can thus keep all of your vehicles powered up at a fraction of the effort that it currently takes.
  • Silent Solutions– Vehicles and construction equipment that rely on electric technology make little noise. Considering that concerns over noise pollution are among the most common barriers to new construction projects, adopting electric vehicles gives you more flexibility in terms of where and when you build.

While these and other benefits make electric vehicles a great investment, not all companies have the resources to invest in this way. Electric vehicles are still highly expensive, putting them out of the price range of many new and small construction firms. And while they are falling in cost, waiting for them to become affordable for your firm could force you to defer considerable profits.

If you don’t have the money for such investments but want to reap the profits now, consider purchasing electric construction equipment with working capital. Working capital loans provide generous, flexible funding for construction projects, allowing you to invest in equipment that lowers costs, raises revenues, and saves the environment. For more information on buying electric construction vehicles and other new technologies with this capital, contact Dimension Funding today.

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Constraint-Free Construction: The Importance Of Financial Flexibility In The Building Industry

Constraint Free Construction

Constraint-Free Construction: The Importance Of Financial Flexibility In The Building Industry

Constraint Free Construction

Success in business is only possible if you plan ahead, and this is particularly true in the construction industry. Building companies have to deal with a wide variety of contingencies that can suddenly raise their costs or cut their revenues. This creates serious shortfalls, making it essential that you have flexible financing to cover them.

Working capital offers the financial flexibility you need to deal with these problems. By providing cash, they allow companies with few liquid assets to cover cost increases and revenue shortfalls. Thus by maintaining access to working capital, you can survive:

Rising Resource Costs

From wood to drywall to wiring to scaffolding, construction companies need countless resources. Relatively minor changes in commodity prices can send the cost of these resources through the roof. For example, a sudden increase in demand for metal can drive up the price of wiring, scaffolding, and pipes, among other resources. These developments may well raise operating costs above what you’ve budgeted for. Working capital loans let you cover the difference until either the costs fall back down or your revenues rise to match.

Sudden Revenue Shortfalls

No matter how reliable and honest your clients are, there’s always a chance that they’ll fail to pay for your services on time. Even clients who work with you in good faith may still have to deal with financial problems on their end, forcing them to stall payments. If they simply don’t have the money, there’s not much you can do other than wait for them to get it, but you still need to fund your company until they do. Working capital lets you pay for everything while you’re waiting, so that your company doesn’t miss out on future opportunities because of problems with past work.

Inclement Weather

While you likely plan your operations around weather forecasts, storms sometimes travel farther or prove more intense than predicted. This can delay your operations, and thus your payments, for days or even weeks at a time. In the meantime, you’ll have lots of fixed costs that you still need to cover. With access to copious working capital, you won’t have any trouble doing this.

Injuries & Safety Issues

When a worker gets injured, your costs can increase markedly. Not only must you pay for their workers’ compensation, but if the cause of the accident isn’t immediately apparent, you’ll have to stop construction, identify it, and shore it up. With working capital, you can cover all these costs, restore your business to full safety, and get back to work.

For more information on costly contingencies in the construction industry or to obtain the working capital to deal with them, contact Dimension Funding today.

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Careful Construction: The Importance Of Working Capital To Worksite Safety

Importance of Working Capital to Construction site Safety

Careful Construction: The Importance Of Working Capital To Worksite Safety

Importance of Working Capital to Construction site Safety

Of all the duties that construction companies must fulfill, none is more important than keeping their worksites safe. Not only do such companies have a responsibility to their workers, who face some of the highest workplace injury rates in the modern market, but they must also safeguard anyone else in the area. To keep everyone safe while still running a productive business, you have to make a variety of investments on a regular basis. Working capital is essential for financing all these investments, including:

Quality Construction Uniforms

One of the simplest and most effective strategies for improving employees’ safety is investing in quality uniforms and other workplace gear. Construction uniforms use bright colors and reflective tape to alert workers to each other’s location. They also contain spaces to hold essential tools or attach harnesses. Certain uniforms may improve safety in particular climates. For example, if you do construction work in the American South during the summer, you’ll need gear that protects employees from heat and sun exposure.

Quality uniforms don’t come cheap, and if you need to rapidly expand your labor force or replace a large number of worn gear all at once, it may be hard to cover the cost from your ordinary revenues. Working capital allows you to pay for new uniforms whenever you need them, ensuring your employees have the gear necessary to stay safe at all times.

Effective Construction Equipment

From scaffolding to harnesses to precise measurement tools, quality construction equipment is critical to the well being of your employees. For maximal safety, it is essential not just to buy and use this equipment, but to replace it with more advanced equipment at every opportunity. These investments are almost always highly expensive, and only pay for themselves over long periods of time. Working capital will let you cover such costs now, achieving immediate improvements in employee safety.

Training Updates

No matter what uniforms and equipment they have to work with, employees can only stay safe if they have the necessary skills. You thus have to offer them periodic training courses that cover basic construction site safety while updating workers on any new gear or equipment they have to work with. Working capital may be necessary in order to obtain the best possible training instructors, software, and other resources. You may also need it to pay for lost productivity, since your employees will have to take time off work while training is going on.

Whether you’re looking to buy new equipment, update your uniforms, or pay for training courses, Dimension Funding has the working capital you need. For more information on providing a safe, efficient workplace, visit our website today.

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Sustainability Solutions: Making Your Construction Operation More Eco-Friendly

Eco-friendly Construction

Sustainability Solutions: Making Your Construction Operation More Eco-Friendly

Eco-friendly Construction

With climate change, ocean acidification, and other environmental crises on the horizon, individual and corporate consumers increasingly demand sustainable products. Houses, offices, and other buildings are no exception. The less environmental damage construction firms cause, the greater the demand will be for their buildings, helping them to establish a loyal base of customers. Thus as a construction company, you should do everything in your power to reduce your impact on the environment, and that starts with:

Investing in Used Construction Equipment

Depending on the specific device you are purchasing, used construction equipment is often just as efficient as new equipment. By getting as much of your equipment secondhand as possible given the specific tasks you need to perform, you avoid generating demand for manufactured goods. As a result, fewer natural resources will have to be mined and used, reducing your contribution to a host of environmental problems. Meanwhile, you will be keeping older equipment out of the landfill.

While used devices are generally more affordable than new ones are, you will need to spend money inspecting and maintaining it, so as to ensure that it can meet your performance needs. You should thus make sure you have enough working capital to keep your used construction devices in good condition.

Using Recycled Materials

Besides recycling construction equipment, you should turn to recycled materials for your buildings. Everything from metal to wood to carpet to drywall can be repurposed, allowing you to finish large portions of the building without buying new materials. As with equipment, you should assemble the working capital necessary to inspect recycled building materials and make sure they are safe. But in general, you should be able to use them just as effectively as new materials while keeping your local landfill empty.

Improving Energy Efficiency

Beyond lowering the ecological cost of the construction process, you can design your buildings to have a low environmental impact after you finish them. Many of the decisions you make during construction will have an enduring impact on the amount of energy your buildings will use down the road. By investing in better insulation, more advanced heating, cooling, and ventilation systems, and more efficient wiring, you can create a building that uses minimal gas and electricity for the long haul. These investments don’t come cheap, making it essential that you raise significant amounts of working capital beforehand. But if you make them, your buildings will be both better for the environment and less expensive to inhabit.

Dimension Funding offers the working capital you need for sustainable construction and all other building projects. For more information, visit our website today.

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Secondhand Superiority: The Benefits Of Relying On Used Construction Equipment

Used Construction Equipment

Secondhand Superiority: The Benefits Of Relying On Used Construction Equipment

Used Construction Equipment

As the owner or manager of a construction company, high capital costs will be a serious obstacle to success throughout the life of your business. From trucks to cranes to rigs to scaffolding, construction equipment is highly expensive, and is only getting costlier as time goes by. This creates a challenge for small and new construction companies, which struggle to afford all the equipment necessary to do their work safely and effectively. Used construction equipment offers an array of advantages for cash-strapped companies, allowing you to:

Reduce Purchase Prices of Construction Equipment

The initial purchase price for used equipment is far lower than that for new equipment. Depending on what specifically you are buying, you may be able to get twice as much used gear as new for the same cost. Not only does this prevent you from tying up all your money in initial purchases, but it gives you more financial flexibility to make sure you have every piece of equipment you need ahead of time. You’re thus unlikely to ever begin a construction job unprepared.

Deflect Depreciation

As with most vehicles, new construction equipment loses a large portion of its value the moment you take it off the lot— even if you keep it in pristine condition! When you buy used equipment, that initial depreciation will already be out of the way long before you make the purchase. As long as you make sure what you’re buying hasn’t been seriously damaged, you’ll be able to get the same quality gear without having to deal with depreciation. You can then resell it for nearly what you paid for it if you ever have to raise money or realize you don’t need the equipment.

Avoid Production Losses

When you buy new equipment, it’s often necessary to wait for weeks or even months for the manufacturer to produce and ship it. Used equipment, on the other hand, is ready to go right away. This means you will not have to pause your operations for as long, saving you from the cost of lost productivity.

Lower Equipment Leasing Expenses

Even if you plan to lease your equipment rather than purchasing it, there is still a financial advantage to choosing used. Used equipment is less expensive to lease than new equipment. This decreases the chance that you’ll have trouble keeping up with all of your payments. It also frees up more of your credit for use on emergencies and other expenses.

For more information on purchasing or leasing used equipment and other tips for cash-strapped construction businesses, contact Dimension Funding today.

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