Putting Private Capital To Work In Rural Infrastructure
India with a population of 1.3 billion has all the potential required to become the next super power economy in the years to come. To realise this potential the country will need to focus on the fundaments, especially infrastructure. The current government has been championing active robust creation of infrastructure across the country. Right from creation of basic infrastructure in the rural parts of the country to developing and expanding the urban infrastructure. The businesses involved in construction and construction equipment related industries and work stand to be major beneficiaries of this infrastructure boost. 40 kms of roads per day is the target that the government has set to meet its infrastructure requirements and it a gold mine of opportunities for businesses in the industry.
Roads are the skeletal structures on which the connectivity of a country and the remaining infrastructure is built on. This is a very good time for business with in-depth insights and understanding of the condition of roads on India. the insight and understanding makes it easier for them to attend to the needs of the country’s roads and make their moolah in the process. 90-95% of the roads in India that need to be created or maintained are rural roads which is a very different play ground as compared to what the large companies are used to dealing with.
That being said, motor graders come under the primary set of construction equipments required to make these roads and play a major role in the bottom line of profits that road construction projects create. Lets dive into how important a role they play in the creation of roads and can aid to deliver better margins for businesses involved in construction of infrastructure and or roads.
It is common knowledge that road construction has always been a labour intensive job and adds to the unpredictability of the time line and costs of the project. Not only does human labour require most capital it is also much more time consuming as compared to machines. In a business where time lines can make an impact on the profit margins unpredictability due to involvement if human labour can be a major turn off, especially when it comes to smaller projects in rural areas. Additionally the labour involved with road construction is untrained with very little or no knowledge of road construction. This inadvertently ends up compromising the final quality and finish of the roads and eventually drilling holes in the contractor’s pockets in the long run. Additionally time delays are a norm having to regularly source new labour to replace the ones that left making it a time and money intensive task.
This is where the machines come in, the motor graders in particularly are the most reliable and efficient machines one can have on a road construction site. A single machine can single handedly do the work of 30 people or more at relatively lesser costs and faster pace. Motor graders deliver better quality and finish of jobs, whilst reducing the time and costs involved making it a must have on road construction sites. Completing projects before the scheduled timelines turn into hefty bonuses from the government in addition to generating good will for the business creating more business and eventually profits. Motor graders help companies finish the existing projects and take on many more projects given the smaller timelines and larger profits that they help bring in.
Motor graders being heavy duty construction equipment are used in challenging climatic conditions across drastically different terrains in India. Add to that the fact that these sophisticated machines are usually used by under skilled operators, the machines go through heavier wear and tear. Larger repair and maintenance costs eat away from the profits from the project. This is where the construction equipment manufacturers can come in and help reduce costs by designing and creating equipment that are more resistant to natural and human damage. Good design from manufacturers can play a major role in cutting down cost and improving profit margins for businesses. Picking up machines that are designed keeping in mind the rough Indian terrain and climatic conditions can help reduce the cost.
Manufacturers with an innate understanding of the actual working conditions tend to create more robust machines that have higher resistance to wear and tear caused due to the climate. To attend to the problem of under skilled operators using the machines and damaging them, technology can help bridge this gap. Construction equipments are being designed to be increasingly intelligent and less dependent on human operators. Buying robust smart machines will help reduce the expenses involved at the fundamental levels of the quality of machines.Is a sensible option to use a motor grader that is specifically designed to suit the requirement of road construction in the country instead of the imports that were designed to suit the requirements of the home countries.
Daily wear and tear are a part of the life cycle of the machines being put to use on construction sites, but the quantity and quality of damage can be reduced by taking better care of the machines. Regular maintenance and cleaning of the machines is a basic necessity to ensure longer machine lives despite harsh working conditions. Weeding out problems in the the root and resoling them will go a long way to add to the life of the machines. Costs for repairing damages is directly proportional to the size of the break down and damage. It is better to attend to the problems while they are still small.
Technology is a business’s friend when it comes to improving profit margins in the long run. Investing in smart machines equipped to self adjust to the working conditions, task at hand and have minimal dependence on humans will go a long way to create larger profit margins down the line. Machines that gather data, diagnose problems in the bud can help avert major havoc and damage to the machines if missed by the human eye and experience. Data collection can help formulate more efficient processes to get the task done faster and with lesser wear and tear to the machines.
While most companies prefer owning or leasing construction equipment, rental is a good option and is becoming increasingly available. Using the rental option smartly can help increase the width of the profit margins. Rental services save on costs incurred for regular servicing, logistics, insurance, maintenance, storage. Equipment rental saves on the large sum of money that is invested in owning the machines and can very easily be used for more profitable tasks like renting more machines to complete the task faster and earn early completion bonuses.
When it comes to India, most motor graders are International brands wanting to crack the growing market and large domestic layers wanting to make their moolah. Make the most of this competition to get the best of technology at better prices by pitching the competitors against each other to get better warranties, maintenance and insurance plans in addition to more services and training. Making smart use of the services being provided by the OEM’s and dealers to reduce the in-house cost of projects will help add to the profit margins as well.
