Budget 2017-18: Record Rs. 3.96 lakh crore Allocation for Infra Set to Drive Construction Equipment Industry

The budget 2017-18 has given the much-needed push to country’s infrastructure sector. The government has announced to invest Rs. 3.96 lakh crore in creating and upgrading the infrastructure of the Asia third largest economy in the next financial year.  In the last budget, the government had allocated the investment of Rs 2.21 trillion for 2016-17.

The government has allocated 18 percent (Rs.3.96 lakh crore) of the total budget allocation, to build and modernize roads, railways, shipping, airports and others. The total expenditure in Budget for 2017-18 stands at Rs. 21.47 lakh crore. The government has made record spending to improve strained infrastructure of the world’s second most populous country.
For the development of the road sector, the government has allocated Rs. 64,900 crore for Highways in next financial year, up from Rs. 57,976 crore in 2016-17. Further, the government has identified the construction and development of 2,000 km of coastal roads to facilitate better connectivity with ports and remote villages.
The government has set a target to build 42 km of roads per day.
For the modernization and up-gradation of railways, Railway lines of 3,500 km will be commissioned in the next fiscal, as against 2,800 km in 2016-17. The government also announced to redevelop at least 25 stations. The total capital and development expenditure on Railways has been pegged at Rs. 1.31 lakh crore for the next financial year.
The allocation for shipping sector has gone up to Rs 1773 crore from Rs 1531 crore in the last budget. The government has allocated Rs 600 crore for Sagarmala programme.
The transportation sector alone has been allocated Rs. 2.41 lakh crore, including Rail, Roads, and Shipping in 2017-18. The Finance Minister said, “This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities.”
While speaking on upgradation of Civil Aviation infrastructure, Mr. Jaitley said that the Select airports in Tier 2 cities of the country will be taken up for operation and maintenance in the PPP (Public – Private Partnership) mode.
In the budget, Finance Minister Mr. Arun Jaitley has taken various measures to boost the construction sector of the country. He has given much-needed relief to affordable housing, now the government has decided to grant infrastructure status to affordable housing, the move is expected to attract investors and reduce costs for developers.
Further, the government announced to build one crore houses for houseless and those living in ‘Kutcha’ houses by 2019. For the financial year 2017-18, the allocation for Pradhan Mantri Awaas Yojana (PMAY)-Rural has been increased to Rs 23,000 crore from Rs.15,000 crore in 2016-17, it will give a boost to construction activities in rural India.
The Indian government planned to lay down the Optical Fiber Cables spread over 1,55,000 km and connect more than  1,50,000 gram panchayats with high-speed broadband connectivity by the end of 2017-18.
Commenting on Budget, Mr. Vipin Sondhi, Managing Director & CEO, JCB India Ltd. said, “From earthmoving and construction equipment industry’s perspective, we till now witnessed that the roads and highway sector leading the growth momentum, however to really create sustainable growth, other sectors needed attention. With this budget the focus has broadened and now includes sectors like railways, agriculture and real estate with emphasis on affordable housing. A record investment of Rs. 3,96,135 crore for infrastructure, 1.31 lakh crore for railways is a big boost to the economy and a step in the right direction.”
The government commitment towards the expansion of country’s infrastructure development helped the construction equipment industry in 2016. Last year, the sales of the construction equipment and construction vehicles drove on the back of government investment in various infrastructure projects.
The huge Rs. 3.96 trillion allocations for infrastructure sector is the good news for the construction equipment and heavy machinery manufacturers like JCB, Volvo CE, Tata Hitachi, Komatsu, SANY, Caterpillar, and others. Also, Heavy commercial vehicle (Dumper & Tipper) makers like Tata Motors, MAN Trucks, SSAB, Ashok Leyland, and others will also get benefited from this budget.
The investment would drive the sales of various construction equipment and material handling products like Backhoe Loaders, Excavators, Cranes, Motor Graders, Bulldozers, Skid steer loader, compactor, Paver, Pavement Planer and others. As the projects hit the ground, the used construction equipment will also witness the demand.
Source: Information has been obtained from Ministry of Finance

Volvo CE Unveils Futuristic Construction Equipment, Could Save Fuel UP to 50%

World’s leading construction equipment maker Volvo Construction Equipment ( Volvo CE) known for keeping itself  ahead in innovative technological advancement. On the same line, company has tried to prove its innovative expertise and set a trend in the construction equipment industry.
Now, Engineers at Volvo CE have been working on technologies to provide zero emissions, zero accidents, zero unplanned stops and reduction of energy consumption in its future construction machine.
Recently Volvo CE showcased groundbreaking technology which could transform the construction equipment industry with its futuristic innovations and ready to achieve new milestones in setting up the new trend with this innovative research. The company unveiled the LX1 prototype hybrid wheel loader at Volvo Construction Equipment’s Xploration Forum; this machine has potential to improve fuel efficiency by up to 50%, demonstrations of a prototype autonomous wheel loader and articulated hauler working together, and an electric site solution that showcased the new concept HX1 autonomous, battery-electric, load carrier.
The electric site project aims to transform the quarry and aggregates industry by reducing carbon emissions by up to 95% and total cost of ownership by up to 25%, claim the company.
All of the innovations shown at the Xploration Forum are ongoing research projects.
“At Volvo CE we are developing technologies connected to electromobility, intelligent machines and total site solutions that will benefit our customers and the environment by contributing to increased machine performance, productivity, efficiency, safety and sustainability. Our future products and services will play an important part in building a sustainable society,” said Mr. Martin Weissburg, Member of the Volvo Group Executive Board and President of Volvo CE.
Volvo CE has been always on the forefront when it comes to technological development, every year Volvo group invests hugely in Research & Development to drive the evolution of new innovation in the construction equipment industry. Company organizes Xploration Forum to share its exciting projects and concepts to the world. The company feels, its future offering could transform the construction industry.
Mr. Weissburg explained, “We’ve set ourselves four key technology challenges that we call Triple Zero and 10x: zero emissions, zero accidents, zero unplanned stops and 10x higher efficiency,” explained Weissburg. “We believe that our clear focus on electromobility, intelligent machines and total site solutions will help us achieve these ambitious goals and pave the way for a sustainable construction industry.”
The company explains how the Triple Zero and 10x is useful for its customers:
Zero emissions: Zero emission machines will help make customers’ businesses more environmentally sustainable.
Zero accidents: With pioneering safety innovations, machines could instinctively avoid accidents, generating a completely safe working environment.
Zero unplanned stops: A world without machine breakdowns, where machines predict and plan their own maintenance – making unplanned stops a thing of the past.
10x higher efficiency: The electrification of construction equipment and site optimization will dramatically reduce energy consumption.
Source: Information has been obtained from Volvo CE’s release

Advantages of Buying Used Construction Equipment

equipment-one-stop-collageConstruction business requires huge investment and a major chunk of investment goes for buying heavy construction machinery depending upon the project requirement. Therefore, it is always advisable to minimize the cost of the investment to make maximum profit out of the project.

There are four segments of construction machinery, Earthmoving equipment, Concrete equipment, road equipment and material handling equipment and buying this equipment is very costly affair.

Due to budget constraint, construction companies can’t take risk of compromising on the quality of construction materials, which will ruin the brand value of the company.

However, one option is always open for these construction companies to minimize the investment in purchasing the machinery used in the projects. Instead of investing in the new construction equipment which is necessarily costly affair, one can prefer to buy second-hand construction equipment from various dealer and e-commerce portals which are in the business of used construction equipment.

There are various advantages of buying second-hand construction equipment, which help construction companies to save huge amount of money.

Lower Cost

The new machine eats up huge money of contractors and buying used machine help to reduce the project cost. Second hand construction equipment is always available at lower price and used machine could be a better alternative from a financial point of view, when we plan out the investment for the project.

Avoid depreciation 

Within a first year of buying the new construction equipment, the value of the machine depreciates around 20 to 40 percent, depending on the condition of the machine, so your resale value is automatically reduced. Thereafter, the depreciation is gradual and not substantial. However, used construction equipment hold resale value, even you sell after a few years or after your project completion. Therefore, potential loss in selling used equipment is lesser as compared to selling new equipment.  

Choice and Flexibility 

Due to the emergence of e-commerce, many companies offer the services of buying and selling used equipment online, which give various options/choice for the buyers to buy equipment in their location or in budget.  When someone intends to buy used equipment he/she has flexibility to choose machine from their favorite brand, which one can’t have same flexibility when go for new machine due to budget constraint.  For example, if a small contractor wishes to buy Backhoe loader of JCB but due to shortage of fund he can’t buy the new JCB Backhoe loader, but he still has option to buy the same brand in used equipment.

Technology Concern 

As we are aware most of the construction equipment manufacturers are coming up with the latest technology and if contractors buy new machine they enjoy the features of the latest technology.

However, it does not make a huge difference on a project if someone uses the older version of the machine due to any reasons. The Heavy construction equipment industry has been very slow in adopting the new technologies, so it is not a matter of concern if contractors are using used equipment due to financial crunch.

Therefore, it’s important to make a choice between new and used equipment after taking all the above mentioned points into consideration.

Indian CE Industry to Grow Over 20% in 2016, Sales Surged 37% in First 6 Months

earthmoving-construction-equipment.jpgDue to rising infrastructure development in the country, Indian construction equipment industry is expected to grow over 20% to 58,465 machines in 2016, said a latest report of Off-Highway Research, a global research firm of construction and agricultural equipment markets.

Sales of construction equipment in India grew over 37% in the first six months (Between January and June) of 2016 when compared to the same period last year, said its specialist consultant and market forecasting study.

The sale of construction equipment could rise during this period, as Indian government has increased its infrastructure investment, especially in road and railways and actual construction work has resumed on the ground. Last month, government has informed the Parliament that Ministry of Road Transport and Highways had approximately awarded projects worth Rs 2 lakh crore in last two years.

Off-Highway Research’s report further says, Indian construction equipment market has witnessed a turnaround over the last 18 months, with sales falling to a low of 47,889 units in 2014, before enjoying a small increase in last year (2015). On the back of infrastructure investment, sale of CE products is expected to surge over 20% in 2016. It is also expected to sustain market (CE) growth for the next four years, albeit at more sustainable levels, it said.

“Infrastructure development is a key economic driver and enjoys an intense government focus that should accelerate demand for construction equipment in the country. India needs an estimated investment of INR 31 trillion (US$ 465 billion) over the next five years to keep pace with its growth targets, of which over 70% would be needed for power, roads and urban infrastructure segments. The total budgeted outlay for the infrastructure sector for fiscal year ending March 2017 is INR 2.2 trillion (US$ 33 billion),” said Off-Highway Research in its report.

It is projected, sale of construction equipment likely to rise to 73,595 units in 2020, if it touches this number, and it would break previous high of 67,898 units sold in 2011.

According to report finding, Backhoe loader is extremely popular machine in India and around 24,500 units expected to be sold this year alone and it represents 42% of the market in volume terms. Off-Highway Research believes the strongest long-term growth prospects are in the crawler excavator segment in India, it is projected to double in size between 2015 and 2020 to 22,000 units per year.

John Deere Releases G-Series of Large-Frame Skid steer, Compact Track Loaders

John-Deere-330G.jpgJohn Deere one of the globally known Construction, agricultural and forestry machinery makers,  releases the new G-series of large-frame skid steers Loaders 330G, 332G and compact track loaders 331G, 333G.  These machines were inspired by extensive feedback from its customers looking for more productivity, better visibility and simplified service to remain competitive in their businesses.

Company also added a host of new features to make the large-frame G-Series machines easier to run and maintain on jobs of every scale.

The biggest improvement on the large-frame G-Series is the refined vertical-lift loader boom design that rise higher, reaches farther and lifts more for quicker and easier loading. Height to hinge pin is 11 feet, enabling operators to easily load dump trucks, feed mixers, fill hoppers and everything in between. The company believes customers will also appreciate the new lift path that extends an additional six inches from the machine.

Contractors, landscapers, farmers, rental professionals and other equipment owners who understand the value of compact equipment can now expect even more power, productivity and uptime on the job with the new G-series equipment.

“Demand for compact machines that maximize productivity and uptime at low daily operating costs is growing, and John Deere is growing with it by adding powerful new options to our G-Series lineup, like the new large-frame skid steers and compact track loaders”, said Mr. Gregg Zupancic, product marketing manager, John Deere Construction and Forestry.

The large frames also serve up substantially greater boom and bucket breakout forces. In fact, they have horsepower that is comparable to a small backhoe loader or crawler, and they also work comfortably in tight quarters, so operators can accomplish more with less machine. Increased rated operating capacities of up to 3,700 lbs. give these models the muscle needed to master heavy loads, coupled with a breakout force that has been increased by 40 percent to make lifting heavy loads easier, said the company in an official release.

John-Deere-skid-steer-cut-1.jpg

Increased auxiliary hydraulic flow and power on the large frames means customers can make the most of an even broader range of attachments for a wide variety of work. Universal Quik-Tatch enables you to go from bucket to forks and more in just seconds. Generous standard and optional high-flow auxiliary hydraulics also let you effortlessly run powered attachments, such as hydraulic hammers, cold planers, mulching heads and trenchers. All auxiliary hydraulic lines and wiring on new machines are now routed through the boom where they’re more protected and out of the operator’s Sightline.

The company further says another key uptime improvement on the G-Series large-frame machines is the integration of John Deere WorkSight, an exclusive suite of telematics solutions that increases uptime while lowering operating costs. At its heart, JDLink Ultimate machine monitoring provides real-time data and health prognostics to suggest maintenance solutions that decrease costly downtime. Remote diagnostics enable a dealer to read codes, record performance data and even update software without a trip to the job site.

Company made several other enhancements to these compact G-Series machines. 

Source: Information has been obtained from company’s press release

Sagarmala Programme Will Require Huge Amount of Construction Equipment

As we are aware, the demand of construction equipment only emerges when infrastructure developments occur in any country. In recent times, we have seen almost all the reports based on the demand of construction equipment projected the huge requirement of different types of construction equipment in India by keeping various infrastructure projects in mind, such as roads, ports, railway, airports, smart cities, public transportation infrastructure and others.

Government of India has launched the Sagarmala Programme with the aim of modernising port-led development in the country and exploit the potential of India’s approximately 7,500 km long coastline and 14,500km of potentially navigable waterways.

The programme involves drawing up a National Perspective Plan (NPP) for Port Modernization & New Port Development, Port Connectivity Enhancement, Port-Led Industrial Development and Coastal Community Development. As part of the NPP, total 173 projects have been initially identified across the programme objectives which will result in significant investment in maritime infrastructure, create employment, reduce logistics cost and boost merchandize exports over the next decade.

The port-led developments indicate the requirement of construction equipment in the country. The development would drive the sale of construction machinery in the country and manufacturers could see the rise in their sell in coming future.

As per the official estimates, the ambitious Sagarmala Programme will mobilize more than Rs. 4 lakh crore of investment and will be able to create 1 crore new jobs, including 40 lakh direct jobs in the next 10 years.

For Port Modernization & New Port Development, 50 projects have been identified to increase the port capacity from 1400 MMTPA to 2500 MMTPA by 2025, at an investment of Rs. 1 lakh crore. For promoting port-led industrial development, 14 Coastal Economic Zones covering all the Maritime States and Union Territories have been proposed.

To enhance the port-connectivity to the country’s production and consumption centres, 65 projects have been proposed at an investment of more than Rs. 2 lakh crore. This includes10,000 km of last mile port-connectivity infrastructure, 12 new freight expressways, heavy haul rail corridor to transport coal, new pipelines for transporting crude and petroleum products, development of prioritized inland waterways and new multi-modal logistics hubs, government said the official statement.

Last month (July 20), Union Cabinet has approved the incorporation of Sagarmala Development Company (SDC) under the Companies Act, 2013, with an initial Authorized Share Capital of Rs. 1,000 crore and a Subscribed Share Capital of Rs. 90 crore. The SDC would provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme.

Government recently said, it has indentified six potential new ports under Sagarmala Programme are; Vadhavan in Maharashtra, Sagar Island in West Bengal, Paradip Satellite Port in Odisha, Enayam an Sirkazhi in Tamil Nadu, Belekeri in Karanataka have been identified and Duggirajupatnam, Andhra Pradesh.

As it is projected Rs. 4 lakh crore of investment mobilize under the programme, various construction equipment such as; Excavators, Backhoe loaders, Cranes, Graders, Batching plant, concrete mixer, Tippers and other different types of construction machinery demand will rise in the country.

Along with port-led development, seven Multi-Modal Logistic Parks (MMLPs) has been also proposed in Chhattisgarh, Madhya Pradesh, Odisha, Telangana, Uttarakhand and West Bengal under Sagarmala Programme.

During recent United States visit of Mr. Nitin Gadkari, Minister for Road Transport and Highways and Shipping, American ports have shown their interest to participate in the port-led development in India, which is to mobilize huge investment.

The port development will not only raise the demand of construction equipment, but also drive the sale of material handling machinery as increased port capacity will require huge amount of material handling equipment to load and unload the goods and container at the ports across the country.

Fork lift truck, Mobile crane, Conveyors, Stackers, Straddle carrier, Ship loaders, Tug-master, Container crane, Front/side loader, Bulk material handling, Automated storage and retrieval system and different other machinery sell would jump after ports will increase its existing capacity.

According Mr. Gadkari, the Sagarmala Programme could save annual logistics cost close to Rs 35,000 crore.

Forklift is One of The Versatile Materials Handling Machinery

Forklift or Fork Truck is one of the most used and versatile machine in Material Handling Equipment (MHE) segment. The Forklift used to move and lift construction and goods material in short distance at a construction site, industrial units, warehousing and across the sector.

The forklift is one of the major materials handling equipment, at construction sites; it is used for carrying various construction materials across the sites. Usage of Forklift, smoothen the work at the site and help the workers to move the material like bricks, steel and other material easily. At Warehouse and industrial unit, Forklift has proved its worth for several years, it plays a key role in loading, unloading and placing the goods items at the right place and help in avoiding the damage of the goods products.

Along with Crane, it is one of the other major used MHE at Port; it carries the container and help in loading and unloading these containers at the Port across the world. The smooth operation at Port only possible because of Forklift, it is said, this machine plays the intermediary role between huge cranes, trucks and warehouses or Logistics Park.

Many of us just understand Forklift and its general usage, but we are not aware of various types of Forklift, which are designed and made for specific work at the site. One of the most popular or common machine is Counterbalance Forklift Trucks, when we think of Forklift, many of us think of this machine, for example, when people think of Backhoe loader, they think of JCB Backhoe loader, similarly when people think of Forklift, they think of Counterbalance Forklift Trucks. This machine is available in electric, diesel and gas.

The other different forklifts are; 3 Wheel Counterbalance Forklift Trucks, Reach Trucks, Hand Pallet Trucks, Powered Pallet Trucks, Sideloaders, Teletrucks and other.

The major companies which manufacture different types of Forklift are, Godrej, Nilkamal, Escorts, Voltas Material Handling Equipment, Toyota Material Handling India, Caterpillar, Komatsu and others.

People who prefer second-hand Forklifts, should look at various online platform to buy the used Forklifts. An emerging e-commerce portal for second-hand construction equipment and material handling is www.equipmentonestop.com, which has extensive varieties of different types of equipment including forklift.

As Indian economy is growing and industrial and warehousing sector is expanding, it would help the sale of different types of Forklift in near future.

Scania Develops World’s First Rollover Side Curtain Airbag for Trucks

Scania Develops World’s First Rollover Side Curtain Airbag for TrucksEuropean truck makers Scania AB has developed World’s first rollover side curtain airbag for Trucks, it gives protection for those travelling in the vehicle in the event of a rollover, one of the most serious types of truck accidents.

The rollover side curtain airbag integrated into the headliner moulding above the doors. This unique solution has never been offered previously in any truck. This widely-discussed truck generation will be unveiled on 23 August.

“The use of a seat belt is essential to allow the safety systems to do their job and to ensure that the driver is not thrown out of the cab, says Christofer Karlsson, he is responsible for the development of Scania’s crash safety system.

He further added, “Our rollover side curtain airbag – particularly when combined with the steering wheel airbag and our seat belt pretensioners – ensures that the driver and any passengers on board will have a much better chance of surviving a rollover accident in one of the new generation of Scania trucks, with far less severe consequences than would be the case in any other truck.”

The company has developed both active and passive safety features in the new truck generation, with a series of measures that protect those travelling in the cab. By offering rollover side curtain airbags, company believes there could be a significant reduction in the proportion of drivers who are killed in rollover accidents.

A common reason for trucks rolling over is that the driver is forced to carry out evasive action to avoid an oncoming vehicle or an obstruction. If the truck then ends up off the road, there is rarely sufficient load-bearing capacity, so the vehicle may topple onto its side or even roll right over at higher speeds. Advanced systems with sensors determine when and if the rollover side curtain airbags and any other airbags should be deployed; when deployed, the airbags inflate immediately.

5 Factors to Consider Before Buying Construction Equipment

5 Factors to Consider Before Buying Construction EquipmentRevival of Indian economy and rising infrastructure projects in the country motivates infrastructure and construction companies to buy new construction equipment to complete the projects. So many people must be planning to purchase new equipment due to the rising number of projects across the country.

Making right decision while buying an ideal machine which suit your project requirement is not an easy task, because heavy equipment are very costly and needed huge investment, so making right decision is very crucial at the time of purchasing equipment.

There are few things which people must consider before buying the heavy equipment.

Prefer well-known company

If you are planning to buy new equipment, the first and foremost thing you should give priority to the brand, because to become brand in any segment is not an easy job, it requires decades to win the trust of its customer. Branded companies have strong and positive track record to provide best quality of products. A company which becomes a brand after struggle of several years will not compromise with quality and using such machinery give the advantage of cutting edge. Products of such companies are very reliable when it comes to performance on the site. However, buying a machine from market leader may cost you a little extra but it could give you the assurance of best quality.

Another advantage of buying machinery from a well-known company is that, they manufacture machine such way that it requires less maintenance, which will save your regular maintenance cost. Regular maintenance does not only cost you extra money on a regular basis, but also affect your work.

Suggestion from Experts

You might be in the construction business for many years, but having technical expertise and being in the business is two different things. Experts are aware of latest trend in the market and they will suggest you the machine as per your requirement. Companies only talk about good features of the product and do not highlight the negative aspects of equipment, where experts play a crucial role helping you to understand negative aspects of the machine. Industry experts are having experience of many years, so their suggestion before buying heavy equipment will add advantage during your planning process.

Go along with expert to the showroom

It is a clever decision taking an expert along with you when going to the showroom of heavy equipment. A person who does not have much knowledge about machinery will not be able to ask fundamental questions related to the machine but expert can personally ask various question related to the products and he will be also able to check equipment personally, which could give you satisfaction before investing huge amount in particular machine.

Technology

The new technology is changing the face of construction industry, so do the work culture at a construction site. Heavy equipment with latest technology is impacting overall performance of the industry. Such machines take less time to complete the project with minimum manpower as compared to older version of the machine.

Equipment with latest technology helps in attracting more business to the contractors, such contractors get more projects, and clients prefer those contractors who are having advanced technology heavy equipment. Works in construction field get smoother and faster with the help of equipment fitted with cutting edge technologies and such machine help in completing the project on time.

Fuel Efficient machine

Heavy construction equipment adds a huge amount of cost and even after purchasing these machines. So it is always advisable to prefer the equipment which consumes less fuel, which will help you to save huge money in long term. Fuelling is one of the major cost, contractor have to bear after the purchase.