12% Growth Expected in Indian Construction Equipment Industry
According to a survey, the Indian construction equipment industry is expected to grow at the rate of 12% and reach around 4 billion in 2017. The factors driving this tremendous rate of growth are the increased rate of coal production and mining clubbed with the ever thriving real estate industry in India.
In the wake of this expected growth, the players in the Indian construction equipment industry need to cash in on the opportunity and strategies well to grow their business. The sustenance of the construction equip industry also depends on the quality and economy of equipment supplied by the manufacturers. Heavy investments in infrastructure by the government and urbanization have opened up great scope for the growth of the real estate sector.
India has rapidly urbanized in the last few years. This has led to an increased demand of residential and commercial buildings. Not just the major metropolitan cities in India, but many rural areas too are being rapidly developed. With the rising number of real estate undertakings in the last few years, industry India is also seeing quick growth. As India’s construction goals have become on par with international quality projects, the need for quality construction equipment is rising too.
The quality of construction equipment such as tractors, backhoe loaders, motor grader, bucket trucks, cranes, crawlers, and so on is crucial to the success of the project. Whether you need to erect a residential structure, a commercial monument or a spot of tourist attraction, you need to invest in quality equipment, be it for the foundation-level activity of digging, levelling, giving shape to a landscape, or for building a skyscraper.
Quality equipment increases labour efficiency, saves time, is economical in the long run, prevents accidents and thus loss of life and damage of land quality. All these factors in turn affect the timelines of the construction project and help achieve the milestones faster.
As more and more construction projects take off well, the demand of construction equipment industry in India is surely going to rise manifold. However, contractors or construction project managers will find renting or leasing construction equipment as more economical than buying it as the former saves their capital from being tied up, which can be put to other uses.
Moreover, as newer equipment guidelines are enforced, the older equipment becomes outdated. You don’t get any bucks out of it as its resale value drops to as low as insignificant, and you have to spend more for its maintenance and storage even when you are not using it. Now, that’s an added expense for you! And so construction project managers will invest wisely in the equipment required for their activities.
So the goal of the Indian construction equipment companies should be to manufacture global quality equipment and also offer customized options for various activities. The challenge that lies in front of them is to produce equipment of high strength, durability, and engineering capabilities, which can be used on India’s tough terrain. They should never compromise on parameters of safety and high performance too!