The Top 3 Major Second-Hand Machines of Construction Field in 2018

Depending on the application, construction machines are classified into various categories, which include earth-moving equipment, earth-compacting equipment, hauling equipment, hoisting equipment, conveying equipment, aggregate production equipment, equipment used in concrete construction and pile-driving equipment.

Out of all, earth-moving and road Construction Equipment (CE) segment accounts for close to 70 per cent of Indias CE market. Typically, earth-moving equipment are referred to as heavy equipment or heavy-duty vehicles designed especially for executing construction operation which mostly involves earthwork operation. They are most commonly used to move large amounts of earth or to dig foundations and landscape areas.

If we talk about the Earthmoving and Construction Equipment (ECE) rental industry, then it is expected to grow at the rate of 30 per cent per year in the future. Since, the earth-moving equipment category is the largest in the CE segment, we throw light on the most commonly used second-hand equipment in the category and which will be in major demand in 2018 as well...

1. Motor graders:

Motor graders or graders are heavy equipment which are majorly used to fine grade and move small amounts of dirt. They are usually self-propelled machines with an adjustable blade to meet certain angles to create a flat surface. Typical motor grader models have three axles with the engine and cab situated above the rear axles at one end of the vehicle and a third axle at the front end of the vehicle with the blade in between.

Motor graders are used for making smoother surfaces, fine grade, levelling soil and shifting small amounts of dirt. The most traditional use of this CE is in the construction and maintenance of roads with its main function being preparing the topmost layer for laying asphalt on top of it. Motor graders are also used for earth-moving purposes. They are even considered to be easy-to-use equipment for mining underneath the ground.

Generally, motor graders are classified into two categories based on the structure and arrangement of the frame i.e., Rigid Frame Motor Grader and Articulated Frame Motor Grader. A small motor grader within a range of 80-150 horsepower is perfect for jobs that need to be completed in a tight spacing environment, while larger motor graders can be used in broader spaces.

As per Off-Highway Research, the motor grader market is expected to grow from 750 units in 2016 to 850 units by 2020. Given, the high purchasing cost associated with the motor graders, the demand for used motor grader is expected to increase in 2018.

2. Backhoe Loaders:

One equipment in the earth-moving equipment category that is and will be rented the most all throughout 2018 is the backhoe loader. This is because they are highly versatile and perform multiple tasks at any construction site.

Also known as digger, backhoes are generally used for working on rugged terrain and perform tasks like moving dirt, backfill, digging trenches, crushing, lifting, grabbing objects, small demolitions, laying pipes, asphalt breaking, paving roads etc. With various attachments, they can also perform various other tasks.

Backhoe loaders are very similar to tractors but the difference is that they contain an adjustable shovel in front a small bucket in the rear. They are considered to be medium sized equipment and are tyre mounted. Overall, they are usually the best choice for jobs which need to be completed in a more restrained space.

It is expected that backhoe loaders will account for over 68.23 per cent of total sales of CE by 2018. Further, sales of BHLs in India is expected to increase from the 21,192 units sold in 2015 to 28,000 machines by 2020, a +32 per cent increase, according to Off-Highway Research. Obviously, with such growth expected, the backhoe loader rental market will also increase considerably. Given the various benefits offered by backhoes, the demand for second-hand equipment is touted to increase drastically in 2018.

When the discussion is about second-hand backhoe loaders, then Mahindra Construction Equipment (MCE) with Mahindra EarthMaster backhoe loaders deserves a special mention. The unique proposition of MCE include robust, maintained and technologically advanced equipment at affordable rates; trained, competent and experienced manpower resources with the equipment, 24*7 service support, onsite repairs and maintenance to reduce machine downtime and production loss at customer site, advice on equipment suitability based on applications and training of operator level personnel for various industries.

3. Excavators:

Excavators are generally used for excavating various types of soils, carrying huge amounts of mud or debris and moving them carefully from one place to another. Further, excavators are also majorly used for crushing and levelling the ground surface for the construction purposes.

They consist of a boom, dipper or stick, bucket and cab on a rotating platform known as the house. This house sits on the top of an undercarriage with tracks or wheels. Excavators are usually employed together with loaders and bulldozers. Typically, excavators are steady, powerful and extremely work-efficient machines. Like backhoe loaders, they bring flexibility and versatility at any construction site. They are available over wheels or tracks.

There are different types of excavators which are used for a variety of applications like digging trenches, holes and foundations; material handling; forestry work; mulching; general grading/landscaping; construction, demolition, mining; river dredging etc.

As per one of the reports of Research and Markets, Indian excavator market is to grow at a CAGR of 7.86 percent over the period between 2014 and 2019. Obviously, with such growth rate projected for excavators, the second-hand excavator market is also bound to rise. The two major reasons that can be seen behind such unprecedented growth of used excavator include the fact that excavators are highly versatile equipment and come with a myriad of attachments and provide better productivity.

In a nutshell

The high infrastructural growth in the country and various technological developments are fuelling the growth of CE industry and this is leading to increasing need for second-hand equipment like backhoe loaders, excavators and motor graders. A few key contributors to the growth of the above mentioned second-hand CE include the rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns and limited space availability. Thus, second-hand CE sellers in the country have all the reasons to smile.