Global demand for heavy construction equipment has soared in recent years. This increase in demand for heavy construction equipment is largely attributed to Asia’s recovery from recession, as well as Latin America, Russia, and Africa. Despite the fact that the heavy construction equipment industry is less concentrated than in previous years, acquisitions and significant partnerships between competing companies continue to grow.
As technological advancements in the design and security of heavy construction equipment aid marketing efforts, price increases tend to be modest in retrospect. This also applies to all types of heavy construction equipment, whether new, used, rented, or leased. Each year, the heavy construction equipment industry meets approximately 6% of global demand. The heavy construction equipment industry has been assisting a number of countries in their efforts to build new infrastructure and restore older public and private structures.
Heavy construction equipment is classified into the following categories: mixers, cranes, loaders, trucks, tractors, graders, and rollers, to name a few. All heavy construction equipment is used in a wide variety of applications, ranging from major infrastructure projects to office buildings, as well as in residential construction, factories, power plants, and mining. Due to the widespread use of heavy construction equipment, key demographic indicators such as population growth, combined with robust economic growth, are the primary drivers of global demand for heavy construction equipment today.
Significant capital investment is also required for projects that require sporadic use of heavy construction equipment. Investors appear more receptive to privately funded projects when interest rates are low and the rate of return is reasonable. The majority of public works projects are undertaken during times of recession as part of a broader financial turnaround. The rate of sustainable economic growth is a major concern in developing countries, as sporadic trends tend to be shorter and more scrutinised in mature markets. This could have an effect on a country’s ability to attract foreign capital or generate its own.
To service the global market, heavy construction equipment and its components can be manufactured in fewer locations. Heavy construction equipment can now move freely between mature markets, while some emerging markets continue to require exports in order to qualify for duty-free imports.
The demand for heavy construction equipment to perform building and re-building tasks varies significantly across regions and countries. In these regions, the demand for heavy construction equipment is driven by the need to upgrade and maintain existing infrastructure and buildings, rather than by new projects. In other developing regions, heavy construction equipment is required to construct new projects such as highways, airports, and urban structures, among others. With an increasing global demand for heavy construction equipment, the building possibilities are limitless.