Here is Why Northeast a Big Market for Construction Equipment Manufacturers, Rental Companies

The government has been giving special attention to infrastructure development in the North Eastern region of the country, especially on the road, railway, communication, and telecom network in all eight states of the region, including Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

Finance Minister Mr. Arun Jaitley has increased allocation for the North East region in Budget 2017-18 to Rs 43245 crore from Rs 32180 in the previous budget and also increased the allocation of Ministry of Development of North Eastern Region (DoNER) to Rs 2682.45 crore from Rs 2524.42 crore.

“Railway ministry has big plans for the North East, several new projects amounting to about Rs 13,500 crore have been sanctioned in this year’s budget, including new lines, bridges and an elevated rail track project from Kamakhya to New Guwahati at a cost of Rs 3,062 crore,” Mr. Rajen Gohain, Union Minister of State for Railways was quoted as saying by the Outlook India. He said while speaking during infrastructure development conference at ConMac 2017 in Guwahati on 3rd March.

In July last year, the Railway minister Mr. Suresh Prabhu had said that railways would invest over Rs 7,000 crore in the current financial year to develop rail infrastructure in North Eastern states.

Hon’ble President of India, Mr. Pranab Mukherjee announced that all meter-Gauge tracks will be converted to Broad-Gauge in North Eastern states by the end of the year, he said while addressing a joint session of both Houses of Parliament on the eve of Budget presentation. The central government proposed broad-gauge connectivity to all North-Eastern state capitals by 2020.

The development of the road is single most important demand in the North Eastern states and density of roads in the region is less than the national average.  The NER Vision 2020 emphasis in the expansion and development of the road network at all levels from National Highways to rural roads. Thus, construction of roads and highways in North Eastern states is the utmost priority for the Central and State governments. Therefore, both states and the central government have taken up a massive programme to expand the road network in the region.

The Ministry of Road Transport and Highways (MoRTH) is primarily responsible for the development and maintenance of National Highways in the country. The Ministry allocated Rs.612.61 crore for repair and maintenance of NHs in the North Eastern Region in current year (2016-17), and Rs.979.92 crore during last three years.

For the better road connectivity in the region, The National Highway & Infrastructure Development Corporation Limited (NHIDCL) has started development work and so far projects aggregation to 1188km at a cost of Rs.14,830 crore.

According to the MoRTH, as of 18th October 2016, NHIDCL was handling 134 National Highway and other road development projects covering a length of about 8,007 km in the North East states which was to be executed at a cost of approximately Rs. 100,000 crore.

In August 2016, the government had informed the Parliament that 197 road building projects of a length 4320.95 km were undergoing which being implemented under various programmes or schemes of  the MoRTH in North Eastern states at a cost of Rs 37691.05 crore. The 20 major railway projects of a length of 2624 km had been taken up at a cost of Rs 52030 crore in the region. While, for the development of telecom, Comprehensive Telecom Development Plan at a cost of Rs 5336.18 crore was under the implementation in the region.

The North Eastern Council (NEC) implemented 715 various development projects at a total approved cost of Rs 7148.65 crore in the North Indian states and the Ministry of Rural Development has been also assisting respective state governments under PMGSY programme. As of 5 August 2016, the Ministry of DoNER had also released an amount of Rs 4113.31 crore for the developments of 608 roads and bridges under NLCPR.

The huge investment in the eight North Eastern states indicates the scope for the construction equipment manufacturers in the region as the massive infrastructure development in the region will create a huge demand for construction equipment. Looking at the demand from this region, Confederation of Indian Industry (CII) organised the second edition of ConMac 2017 (Construction Equipment Exhibition for North East) in a partnership with Indian Construction Equipment Manufacturers’ Association (ICEMA) in Guwahati on 2nd to 4th March 2017.

The ConMac 2017 witnessed the presence of major construction equipment companies such as JCB India, SANY, Tata Hitachi, SCHWING Stetter, ACE, Kobelco Construction Equipment, Bull Machines, Safari Construction Equipments, Rhino Road Equipments, KYB-Conmat, Ashok Road Equipments and Manufacturer, Ajax Fiori Engineering and others.

The investments in the region will also benefit rental companies in the North Eastern states as many contractors started renting heavy construction machines in order to reduce their project cost.

Source: Information has been obtained from GoI, Outlook India, ConMac

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Planning to Sell Used Construction Equipment – Get Valuation From Expert

Selling any used product is not as simple as selling any brand new product from the showroom, similarly selling used construction equipment may not be as simple as selling new heavy machinery. Thus the price of the new machine is fixed by the company while there is no fixed price for second-hand construction equipment.

A seller of used machine is not usually aware of what price they should sell their used heavy equipment, especially the people living in the rural areas as they do not have easy access to the big resale market. Due to lack of the organized market for selling used equipment, the seller ends up selling it at a very low price whereas its actual resale price could be higher.

In this case, the owner of the machine could not utilize or gain by selling the old machine. Here, an Expert can play the important role in providing the valuation for your used machines.

Until a few years ago, the used construction equipment market was quite scattered and lacked the professionalism while dealing with buying and selling any types of used construction equipment. Slowly this market started becoming organized to serve the resale market on the line of developed countries. Due to the emergence of online players like Equipmentonestop.com in India, it brought remarkable changes in the sector and empowered the sellers, especially seating in a remote area of the country.

The one of unique service introduced by the Equipmentonestop.com for the people is ‘Valuation Service’. In this service, the team of Experts from the industry helps the sellers to decide their machine’s market value on the basis of the current market requirement, trend, and condition of the machine which could help the sellers in deciding the resale price for their used heavy equipment. It helps the sellers get the maximum return by selling used construction equipment.

Various people already availed this service and gained the better return by selling their second-hand construction machine. The team of experts at Equipmentonestop.com provides the valuation for all types of used construction equipment including,   Excavator, Backhoe Loader, Wheel Loader, Crane, Motor Grader, Paver, Roller, Pavement Planer, Asphalt Mixing Plant, Forklifts, Milling machine, Compactors, Tippers and different others.

This service is available for people from across the country, even a seller seating in a remote part of India can avail it.

Besides the valuation service, this online portal also provides the platforms for buying and selling used construction equipment, renting services, Loan upon buying used and new construction equipment and also Insurance are provided to sustain a loss due to physical damage or breakdown of the heavy equipment.

Next time if you are confused deciding the price of your used equipment, you can contact with the www.equipmentonestop.com for better valuation of your machine.

Indian Motor Grader Market to Rise 24% Over The Next 5 Years Due to Growing Infra Investment, Road Construction: Report

The Indian Motor Grader market is expected to rise 24% over the next five years (2021) on the back of growing road building activities and future investment in the infrastructure projects said a latest report of Off-Highway Research. In 2016, the sales of motor graders jumped 54% in the country.

The recent growth in the Motor Grader market and the optimistic forecast for next five years is based on the rising infrastructure investment and a recovery in mining activities in India says the report titled ‘Indian Equipment Analysis: Motor Graders’.

“Sales of motor graders follow very closely the trends of expenditure on the construction of new roads and the maintenance of the road network, so demand for machines will largely depend on the speed at which existing and future road projects are executed. The backlog of pending road construction work in the country as well as the government’s ambitious infrastructure development plans, offer huge potential for growth in the motor grader demand,” said the report.

In the Budget 2017-18, the Indian government has allocated Rs. 3.96 lakh crore (18% of total budget cost) to give the much-needed push to the country’s infrastructure sector, increase from Rs 2.21 lakh crore (In budget 2016-17).

Out of this Rs. 3.96 lakh crore, the Rs. 2.41 lakh crore alone allocated for transportation sector, including Railways, Roads and Ports sectors. For the highways, it allocated Rs. 64,900 crore investments up from Rs. 57,976 crore in 2016-17. Besides, the government will develop and expand 2,000 km of coastal roads to facilitate better connectivity with ports and remote villages.

In addition, the central government has allocated Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana (PMGSY) in the next fiscal to complete the current target under PMGSY by 2019, and with the contribution of the States, around Rs. 27,000 crore will be spent on PMGSY in 2017-18.

In the last two years, the government has successfully increased the pace of the road construction in the country and it is expected to continue, as the government announced a huge investment for road development. It is also closely monitoring the pace of the road construction. Recently, Road Transport, Highway and Shipping Minister Mr. Nitin Gadkari said, the government sets a target to build 42 km of roads per day.

Ministry of Road Transport and Highways (MoRTH) has aimed to award works worth Rs 7 lakh crore in the next five years to develop National Highways of around 50,000 km.

“Future demand for bigger machines will be largely determined by the levels of activity in the mining sector, which is likely to grow in the coming years,” the report said.

The manufacturers of Motor Graders like CAT, Komatsu, Tata Hitachi, Terex, Volvo, Hyundai, Action Construction Equipment (ACE), CASE Construction, LIUGONG, SANY, Schwing Stetter, Leeboy, Deere, and others will be benefiting from the road building in India.

Source: Information has been obtained from Off-Highway Research, GoI

A Guide to Understanding Major Difference Between Excavator and Backhoe Loader

Construction equipment manufacturers design and build each machine for a specific task; therefore it is equally important for users to know the task perform by the each machine before they bring it to the construction site. Here we will see the usage and functionality of two most used Earthmoving equipment, the Excavator, and Backhoe Loader. They alone consist almost 40% of the market share.

Excavator and Backhoe Loader, both are versatile construction equipment in the field of civil engineering, but the major difference between these two are the capabilities of each machine depending on the project size, the difference in weight and size of each machine. However, both these machines are available in different sizes so that contractors can perform the specific task and depending on the project size.

Excavator

This versatile construction equipment performs different tasks at construction sites. An excavator is majorly used for medium and large size of construction projects in industrial and commercial sites. It performs multiple jobs such as Digging holes, foundations, and trenches, River dredging, driving piles, Snow removal, dragging and lifting materials, and is also used for demolition.

The Hydraulic excavators can perform various other tasks beyond the excavation with the attachment like a Grapple, Breaker, and Auger; it can perform Brush cutting, drilling shafts, rock blasting and others. It comes in different sizes, like small size called mini or compact excavator, medium excavator, and large excavator and each size is designed to use for different kinds of projects, for example, the large excavators used for big projects and vice versa. In the recent time, many contractors started preferring mini excavator over Backhoe Loaders.

This versatility makes Excavator ideal Earthmoving equipment for medium to heavy-duty tasks.

Backhoe Loader

Backhoe Loader is called a standard tractor and is most sold construction equipment in India due to its multi-functionality abilities. This unique construction equipment has a combination of different tools (Boom, dipper, bucket, Shovel etc.) and each tool associated with Backhoe Loader performs different tasks at construction sites. The machine is used for small demolition, digging holes, paving roads, breaking asphalt, laying pipes, setting up drainage system, transport heavy items; it is capable of performing various other tasks. It is given the name backhoe as it pulls the dirt back towards itself.

Backhoe Loader is a right kind of machine for small to medium types of construction projects in the small budget. Backhoe Loader uses for almost all types of construction projects in India. The future market for the Backhoe Loader in India is quite bullish as various reports suggest that India will remain the most profitable market.

Difference between Backhoe Loaders and Excavators

1 – Backhoe Loaders are very small as compared to the Excavators

2 – Backhoe Loader looks like an advanced tractor, fitted with bucket/shovel on the front and a Backhoe on the back side of the machine.

3 – Excavators consist of a stick, bucket, boom and cabin mounted on a platform. It is considered as most versatile machine as compared to the Backhoe Loader. The excavator is the most specialist machines to perform its task.

4 – Backhoe Loader has tire whereas excavator comes with tracks (either rubber or metal).

5 – The advantage with excavators is that it can swing on 360 degrees while the backhoe loader has restricted rotation of 200 degrees on the left and right side.

6 – Excavators are suitable for heavy duty tasks (commercial and industrial) with sufficient open space at the sites and Backhoe Loaders relatively used for small and medium duty work. Backhoe Loader can be used in compact and constricted job locations whereas Excavators require open space.

7 – As far as cost involves with both the machines are concerned, buying a standard excavator is much higher than standard backhoe loader. The maintenance, storage, renting or leasing excavator is costly compared to the backhoe loaders.

8 – In the cabin, operators of the excavators sit on the rotating platform, whereas backhoe loaders cabin is fixed.

9 – To transport Excavators, one requires carrier vehicle to transport it to one place to another or bring it to the construction sites. While Backhoe loaders can be transported easily from one place to another. However, transporting Excavators are quite high compared to the Backhoe Loaders.

How to Buy Used Komatsu Excavator in India?

Using Products from the well-known brand gives various advantages such as better productivity, durability, better resale value, fuel-efficient, better engine quality, low maintenance machine and others. Brands like Komatsu, Hyundai, Tata Hitachi, Caterpillar, Volvo, and a few others comes first in mind when comes to buying Excavator.

Many of us like using one specific brand because of the attachment with the company for several years. Similarly, many contractors may also be fond of one brand when it comes to using Excavator but unable to afford it due to cost involve in buying a new machine. Therefore, they look for their favourite brand in the resale market.

If Komatsu is your favourite brand when comes to Excavator, Here we will specifically see how and from where one can buy the used Komatsu Excavator in the country.

Komatsu is one the leading and reputed brand in Excavator, not only in India but in many other markets of the world as it has been successfully met the customer’s expectation over a period of time. Thus, buying new Komatsu excavator is quite easy and simple, you have to just simply visit the dealer showroom and you will get it. But when it comes to buying a second-hand Komatsu excavator, it is not as easy as getting a new machine; it requires the sound knowledge of the resale market and contact with local brokers/dealers who are into used construction equipment business.

While at the same time, one must be aware that whether your local dealers are having verities of the Komatsu’s used excavator  and it is under your budget or not. The more verities or options you get, you end up getting better used Komatsu excavator at a lower price, the more option you have, the more you will be able to negotiate with the sellers. As compared to the local dealers/brokers, the online players are having more verities.

Indian used construction equipment market started getting organized with the emergence of online players like www.equipmentonestop.com. Now, buying any types of second-hand construction equipment has become quite easy in India. So if you are looking to buy used Komatsu excavator, one can get multiple options with attractive prices on these portals in different cities.

Currently, Equipment One Stop is having used Komatsu excavators in different models like Komatsu PC 200, Komatsu PC 210, Komatsu PC 300, Komatsu PC 130, Komatsu PC 450 and others in state like Rajasthan, Karnataka, Kerala, Maharashtra, Gujarat, even someone is looking for Komatsu excavator in other states, it will arrange the machine anywhere in India by using its wide range of dealer network.

The excavator is the most versatile Earthmoving equipment in the construction field.  The contractors use it for multi-purpose, such as for digging holes, foundation, trenches, dragging, lifting materials, landscaping/grading, mining, river dredging, demolition, and others.

Increasing Practice of Leasing Construction Equipment to Reduce Project Costs Will Drive CE Rental Market: PMR

The construction equipment rental market is expected to witness the robust growth in next 10 years on the back of the increasing practice of leasing construction equipment across the World including India,  said a report. The companies across the world prefer the renting option to reduce project costs.

An abstract of a report titled ‘Construction Equipment Rental Market: Global Industry Analysis and Forecast 2016-2016’ published by Persistence Market Research said that practice of leasing heavy construction equipment has proven to be beneficial for all sizes of the companies across the world which would result into boosting the rental market during the forecast period.

The report observed that construction equipment rental market will majorly get benefit from investments in the sectors like transport, housing, energy, and power. With such high level of investments in these sectors, the construction companies are expected to prefer the renting option as to reduce their overall project costs.

“This is a cost effective approach as in doing so they face lower maintenance costs and fewer technical charges. Adding to that, transportation, operation and servicing requirements are reduced many folds. Both these factors fuel demand for the construction equipment rental market in the coming future,” said the report.

The other reasons which would drive CE rental market during the period are; renting reduce operating expenses and evade tax, insurance, licensing, interest on loans, storage cost, and others which usually come with purchasing new machines. These expenses can be saved by renting the construction equipment.

The inclusion of a varied range of advanced construction equipment in rental fleets is expected to drive the rental market in all the major markets in the world. The other key reasons which would fuel the construction equipment rental market during the forecast period are strict regulations, increasing ownership cost and financial constraints.

On the other hand, the major obstruction for the demand for renting construction equipment during forecast period would be fluctuating fuel prices, expenditure of picking up and delivering machinery, especially when the contractor is working in remote areas.

According to the report, the demand for advanced and eco-friendly machinery will rise, and low maintenance machinery is expected to castaway conventional equipment during the forecast period.

The study is very bullish on Asia pacific region, the region is expected to dominate the construction equipment rental market over the forecast period. India and China are expected to offer better opportunities due to rising population and urbanization, and the growth in IT sector will further push the construction equipment rental market.

Three Ways of Looking Heavy Construction Equipment Before Starting Projects

To perform any task, advanced planning is required to complete the projects.  As we know a huge construction project would float in the next fiscal, as the Indian Government announced to invest Rs. 3.96 lakh crore for the country’s infrastructure, thus people associated with construction industry may soon start their planning for fleet management.

Here we will see different ways, which usually considered during the project planning regarding the management of the equipment for the projects. Generally, contractors consider three options during the planning stage, 1) Buying New Construction Equipment, 2) Rent, 3) Buying Used Construction equipment, which entirely depends on the budget and project requirement.

Buying New Construction Equipment

Buying new construction equipment has various advantages than disadvantages. Today whoever buys the new machine; they prefer the technologically-advanced machine which provides different advanced features to perform the task easily, help in increasing productivity with minimum human involvement, fuel-efficient, environment-friendly, low-maintenance cost and can also be remotely monitored.  But, buying new construction machinery is always a costly affair, not everyone can afford buying a new machine. However, big contractors prefer to purchase a brand new machine so that it can be used for a long period.

Rent Construction Equipment

People who are unable to buy a brand new technologically-advanced machine due to budget constraint, but he can still use such machine on Rent. Many contractors prefer renting the equipment rather than owning it, due to various advantages. Renting is having various advantages like one can hire the machine for temporary projects, rent any types of machinery, without owning the machine you can start the project with hired machinery, you can hire machine wherever you required, and others.

By looking at the rising demand for hiring construction equipment, many construction equipment manufacturers also started rental services and providing their new machine to contractors on rent. Renting option reduces the burden of maintenance, servicing, transportation of the fleet, etc.

Many online companies like EquipmentOneStop.com started rental services in India, where people from across the country can hire different types of construction machinery for their temporary projects.

Buying Used Construction Equipment

When the budget does not allow investing in the new heavy equipment, buying used construction equipment from resale market help you keep the overall budget in control. Buying used machine may reduce your budget 30 to 40%. Earlier due to limited reach, buying used construction equipment was a challenging task, but due to the rising number of organized players and emergence of e-commerce companies have given the new height to the resale market.

The used machines do have some disadvantage, but careful inspection or selection of the machine may help you to reduce some extent of its disadvantages.

The online companies provide all kinds of used construction machinery, like Excavators, Backhoe Loaders, Wheel Loaders, Motor Graders, Cranes, Pavers, Road Rollers, Dumpers, and others.

Volvo CE Introduces Single-Drum Compactor for Indian Market

Leading construction equipment manufacturer Volvo Construction Equipment (Volvo CE) recently introduced updated SD110BA single-drum Compactor for India market. The company has designed this machine after harnessing the skills and knowledge gained while working in India over the decades for country’s industrial applications.

The updated SD110BA single drum compactor built in India by keeping the productivity, combining powerful performance, quality compaction and versatility to adapt to earthwork compaction applications in India.

“The next generation compactor is specifically manufactured to place and compact mixed soils, crushed aggregates and base materials beneath flexible pavements capable of accommodating heavy traffic volumes. And, boasting an impressive range of productivity-enhancing features, the Volvo SD110BA ensures profit in every pass”, said the company in a press statement.

To maneuver across the different terrain in India, the Volvo SD110BA features a propulsion control lever with integrated vibration activation for precise speed control and ease of operation. This, in addition to a wide range of features including easy-to-reach controls, ample toolbox storage, and detachable sunshade ensures confident compaction, regardless of terrain or job site conditions, it said.

Operator Comfort

Due to the fully integrated traction control system, the Volvo SD110BA enables operators to access hard-to-reach areas of the site and its preventing wheel slip gives stability to the machine when operating on steep inclines and slippery surfaces.

This machine is highly comfortable for operators’ point of view; it gives ample space for continuous airflow even during varying temperatures and altitudes and enables the operator to remain comfortable and fatigue-free.

All weather condition

The engine compartment of the Volvo SD110BA designed to beat the typical weather condition of the sub-continent, and it’s also equipped with a cooling fan to reduce power from the engine, which helps the engine to stay cool in high ambient temperatures.

Fuel Efficient Engine

This single drum compactor, built for power and productivity. It offers optimum fuel efficiency and emission compliance, claims the company. It could be the ideal choice for people looking to control both operating costs and environmental impact.

Its BS-III compliant engine and optimized hydraulics system work in harmony to provide a smooth, efficient and effective use of energy. To further increase fuel efficiency, the intelligently-designed vibration system offers quicker ramp-up speeds at lower pressure.

Long Service Life

These single drum compactors are designed to ensure a long service life to the machine and increase uptime. Volvo claims its all Genuine Volvo Parts are extensively tested and approved, which provides long-lasting performance and maximize the durability of its components.

Volvo is also offering a complete range of Customer Solutions to ensure SD110BA achieve maximum uptime and generate profit and growth for their owners.

Equipment One Stop Started Rental Services for Construction Machinery

India’s one of the fastest emerging online portal for buying and selling used construction machinery, www.equipmentonestop.com has started ‘Rental Services’ for Contractors and Asset owners on the back of the growing trend of hiring construction, mining and material handling equipment in the country.

The rental platform allows people to both Hire and Rent Out any types of construction equipment from anywhere in India.
The rental service is available across the country including Maharashtra, Karnataka, Andhra Pradesh, Telangana, Rajasthan, Delhi, North India, Gujarat, and other states, thus people from any part of the country can either hire machine using this platform or rent out their machine to others.
The portal is having different kinds of machines including Backhoe Loaders, Compactors, Cranes, Dozers, Excavators, Graders, Hydra Cranes, Mobile Cranes, Pavers, Wheel Loaders and others.
Contractors who are looking to hire any construction equipment for their temporary projects or long term projects can visit Equipment One Stop’s rental section to see the machines on the website. In case you do not find the equipment on the portal which you are looking for, the team of Equipment One Stop (EOS) will arrange the specific machine for you using its wide range of a network.
Therefore, Contractors have to simply put their request on the website; EOS will help you meeting your requirement.
For the asset owners, the Rental Service gives them the opportunity to use this platform free of cost. Here, anyone can put the details and pictures of their machine on the website, which will be visible to the contractors from any part of the country and they may approach you if interested in your machines.
No matter where are you sitting, you can post the details of your asset on the website by following few simple steps.
The rental service is available on weekly, monthly, quarterly and annual basis.
In the Rental section, you will see two sub-sections, ‘Rent In’ and ‘Rent Out.’  In the ‘Rent In’ section, you can see the machines which are available for hiring. If you want to ‘Rent Out’ your own machine to others, here you can post the details of your machines.
Since the inception of companies like EOS, hiring construction equipment has become quite easy and CE rental has started becoming organized segment.
Prior to the introduction of ‘Rental’ service, the Equipment One Stop (www.equipmentonestop.com) was providing services for buying and selling used construction equipment. Besides, it also provides other services such as Valuation, Finance, and Insurance. Therefore, EOS has emerged as a ‘One Stop Solution’ for buying, selling and hiring any types of used construction equipment in a very short period of time.