Double digit growth expected in the Indian Construction Equipment Industry
Report from the ICEMA forecast a growth of 20-25% for the Indian construction equipment industry and a valuation of whooping 21 Billion USD by 2020. Driving this forecast with full throttle are the fast growing coal production and mining industry along with the evergreen real estate and infrastructure sector.
The government of India is in the process of opening the flood gates for the Indian construction equipment industry with its increased focus and investment in the infrastructure sector. Policy changes have been initiated to support growth of construction equipment manufacturing industry. The policy changes will directly support the much needed acceleration of growth of infrastructure. Real estate is growing at a pace like never before to meet the increasing needs for urban housing even in the tier 2 and tier 3 cities. The CE industry can cash in on this bloom by strategizing well and focusing on the quality and competitive edge of the products.
International standards have become the benchmark when it comes to infrastructure from both architectural and engineering perspectives. Be it roads, bridges, commercial buildings or residential projects, the required quality has come on par and on some occasions exceeded global standards. This has again created a demand and supply void for elite quality construction equipment to meet the overwhelming needs of fast growing India.
Be it your dream home or a monumental high-rise or anything in between for that matter construction equipment like tractors, backhoe loaders, motor graders, bucket trucks, cranes, crawlers, etc are mandatory and a pre-requisite right from the start to the completion of the project. The quality of these necessary equipment’s decide the pace and economics of the projects, whether people and companies will rake in profits or suffer losses. Optimum utilization of machinery and planning reduce costs considerably.
Equipment quality is king in these changing times, it increases labour efficiency, saves on time, are safer for the handlers and reduce the number of accidents on site. All in all the better the quality of the machinery, the more time and money is saved, helping the projects achieve 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 become outdated. And so construction project managers will need to invest wisely in the equipmens with better and advanced technology such that performance and operating economics also get a boost.
So the goal of the Indian construction equipment companies should be to manufacture international quality equipment and also offer customized options for various activities. The challenge that lies ahead for CE manufacturers is to produce equipment of high strength, durability, and engineering capabilities, safety measure and high performance which can be used on India's tough terrain.
