Moving the Heavy Earth Moving Equipment Industry in India

The recent years have seen the heavy earthmoving equipment industry see a lot of wild swings. The payment cycle in the industry is quite literally neck breaking, both the investment and the flow of money in the industry is low and slow. Major projects have been put on hold due to the economic slowdown and the iron ore mining ban in the states of Goa and Karnataka have led to a sluggish market with people being reluctant about investing in the industry at these times. Fund flow in the industry has slowed down and the investors are shying away from betting their money here.

The first hit to the segment was the iron ore mining ban in Goa and Karnataka that put a lot of men and machines out of work. People associated with the mining industry both directly and indirectly have had to take a beating. One such industry is the heavy earth moving equipment industry leaving owners with huge dues on machines and the machines lying around as a liability without any work at hand. In these conditions the industry has been looking at newer alternatives to keep the show going as they best as they possibly can.

However with the coal blocks opening up for mining and Make in India initiative, the prospects for the industry to get back on a growing trajectory are rather bright. The boom in the infrastructure industry for the construction of IT parks, highways, airports, new smart cities and the increasing demand for urban infrastructure are bound to bring positive effects on the earth moving industry as the demand for the machines will increase. The increased demand will bring about an increase in the number of machines and skill power required to operate the machine.

A whole new sector will burst up for after sales services in the industry. The entry of new players in the industry will also add to the demand of both old and new machines. Additionally the rental market for equipment is all set to grow in India to meet the rising demands with the stalled projects up and running again and new ones being awarded.

A major chunk of the demand for the earth moving equipment will come from the government backed infrastructure projects. Another thing to note is that the focus is shifting towards introduction of products that are low on initial investment to stay afloat in the rather difficult market conditions. With machines becoming more sophisticated with every passing day, there is a huge short fall of well trained professionals who can operate these machines to their full potential and service them as and when required. The industry is taking up initiatives to fill this gap between the demand and supply for trained man power to make the most of the boom in the industry.

As both the global and national economy get back on the growing track so will the earth moving equipment industry in India.