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International Demand for Heavy Equipment means High Payoffs

The global market for construction and heavy equipment is growing with the greatest demand signals coming from the Asian Pacific region, particularly from China, Japan, and India. As I write this, the major equipment manufacturers we all know ie. Caterpillar, JCB, hitachi, Liebherr and more are in talks with developers, dealerships, and rental juggernauts in the region in order to best position themselves for the sale of their equipment. This rise in demand is primarily due to increasing living conditions in China and India and thus private and public money is being pumped into housing and infrastructural projects to support growing demand for bigger and nicer homes. The big corporations can operate with relative ease in an international market because they already have personnel and offices all over the world, but how can a small to medium sized contracting or equipment Company in the United States benefit from this development? It is important business owners and leaders alike realize the international market is no longer as restrictive as is it once was. In fact, with online market places like Alibaba and Ironplanet growing in popularity, global equipment trade is now easier than ever to conduct for anyone with a computer. The following are a two things your company should consider if it wants to benefit from this rise in demand.

1. Is your Company Maximizing the financial utilization of it’s equipment?

Contracting Companies

Ask yourself, is every piece of equipment in my fleet maximizing my revenues. If the answer is no, find out which pieces of equipment you can shave from your fleet and sell them. I understand the need to be flexible and the satisfaction that comes from having your equipment that can be used without being beholden to anyone else, but bottom line is this is not the most effective way to turn a profit and that is what you are in business for. It may make sense to rent any additional equipment that is needed for future jobs and sell the pieces that are piling up maintenance fees and space! Remember, there is a high demand for your equipment, and someone abroad may actually buy it for more than its currently worth in this market as the foreign markets pay a premium for good quality used equipment.

Rental Companies

Ask yourself, am I carrying equipment that is not being rented? By tracking total rental time over the time the piece of equipment has been owned you can easily find out its popularity within your region. A company in South Florida, where you cannot dig a certain depth without hitting water or limestone, may find that it does not rent out enough earth moving equipment to maximize utilization. My suggestion, set an ideal utilization percentage that fits your company and the moment a piece of equipment falls under that percentage consider selling.

2. What are your maintenance-to-Income Ratios?

Your focus is profit and you just can’t profit when a piece of equipment is consistently under maintenance and not in commission. This affects customer satisfaction and slows down productivity in the work site. That very same troublesome piece of equipment could turn into the cash infusion you need to hire more labor, enhance training programs for sales or crews, essentially any number of things that can directly affect your company’s ability to make more money.

Perhaps you were already thinking about selling some of your equipment. Make sure you always keep shipping costs in mind as you consider the offering price. Then find a good transportation provider like Orzel Black to ensure your equipment is delivered in a timely manner and is received in its best condition.


1. Construction Equipment And Heavy Equipment Market 2018-2026 Share, Size | Global Industry Analysis


2.Survey Finds Asia-Pacific B2B Buyers Prize "Offline" Relationships As Much As E-Commerce


3. Research for purchase at

Factors increasing the demand for construction equipment manufacturing


4. Global Heavy Construction Equipment Market Will Reach USD 231.3 Billion By 2025: Zion Market Researchhttps://www.globenewswire.com/news-release/2019/03/22/1759318/0/en/Global-Heavy-Construction-Equipment-Market-Will-Reach-USD-231-3-Billion-By-2025-Zion-Market-Research.html

5. Top KPIs to manage your fleet and maximize profit https://www.targit.com/en/blog/2017/05/best-kpis-heavy-equipment-analytics

#construction #EquipmentAuction #HeavyMachinerysales