Heavy Equipment Industry Obstacles and Opportunities
In creating a digital marketplace for equipment dealers and individual sellers to list their new and used heavy construction equipment for sale and buyers to locate such equipment, Equipment Anywhere put a lot of time and effort into researching industry trends in order to identify the various challenges that face the industry as well as the opportunities that have presented themselves. The heavy equipment industry plays a vital part in the completion of construction projects as it provides the machinery necessary to enhance construction work productivity to more quickly finish roads, buildings, and other types of infrastructure. By analyzing the different industry trends, one can better identify what affects the workforce of equipment operators and the market for heavy equipment in general. We will begin by examining some of the obstacles facing the industry currently and then move on to some opportunities for growth.
Obstacles Environmental Regulations
First, there has been a great increase in environmental regulations in recent years and environmental and green initiatives have become an important issue. As pollution has become more of a concern and government officials have attempted to mitigate the problem and improve air quality, there has been greater focus on identifying ways to reduce harmful emissions and develop cleaner fuels and more environmentally-friendly vehicles. This is especially challenging for the heavy equipment industry and the manufacturers of heavy construction equipment as they must adhere to the stricter rules and regulations set and develop equipment that meets these standards in order to maintain a competitive edge and stay in business.
Labor Shortage
Second, there is a growing shortage in skilled labor. The construction workforce is aging, and as the older workers are starting to retire, the younger generation has not expressed much interest in learning the trade and coming in to replace them. This has created a significant labor shortage of skilled construction workers. A recent survey of nearly 2,000 construction company or contractor representatives completed by the Associated General Contractors of America found that around 80% were unable to find workers to fill their available positions.
Technology
Third, advancements in technology can present a challenge to the heavy equipment industry as manufacturers try to keep up with the changes and innovations. In order to succeed, companies must stay up-to-date with the current technological trends and adapt and evolve their machinery accordingly. This can be an expensive undertaking, and equipment companies should ensure that they have the funds available to offer such advanced technology in order to stay competitive. If a heavy equipment manufacturer is unable to match the technological offerings and advancements of their competitors, it could prevent them from expanding into new business relationships and could easily lead to their downfall.
Pandemic
Fourth, the COVID-19 pandemic has presented a unique challenge to the heavy equipment industry. Prior to the pandemic market and sales projections were high, but expectations changed dramatically with the onset of the pandemic and the industry hit a lull. The initial stay home orders in March and April caused a decrease in construction. Due to cuts to the budget for highway and street construction and repair as well as education-related construction projects, public construction decreased by 0.7%, and private construction was affected even more greatly. Overall, total construction was reduced by 6% through June. However, every challenge presents a great opportunity, and the market has recovered rather quickly. By June, construction began to ramp up again, and since February, construction spending has actually increased by 0.3%.
Opportunities for Growth
There are several other ways in which potential industry challenges may offer growth opportunities. First, sustainable energy creates enormous possibilities for heavy equipment manufacturers. By developing equipment that is powered by electricity or other hybrid formats, companies have the opportunity to become industry leaders and grow to meet their potential. Second, industry outlook continues to improve. Despite the pandemic, statistics suggest that the construction industry is growing, and the market is projected to grow at a 10% rate between 2018 and 2028 according to the United States Bureau of Labor Statistics. This increase in construction also leads to a higher demand for construction equipment and construction equipment operators. This presents a third big opportunity for growth, and that third opportunity is the fact that there are an abundance of construction industry jobs available. Since the market is growing and the pool of skilled labor is shrinking, it opens up a multitude of possibilities to those looking to enter the industry. The shortage of skilled construction workers has even forced employers in the industry to increase compensation and benefit offerings. As there are so many jobs available, workers are better able to find a job that best suits their employment criteria.
In conclusion, through extensive research and planning to become an industry leader and provide the best digital marketplace for new and used construction tools for sale, Equipment Anywhere has been able to identify potential obstacles and opportunities for growth in the heavy equipment industry. Even in tough times like the one that the entire world is experiencing right now with the global pandemic, the construction and heavy equipment industries are resilient and adaptable and job opportunities are abundant. Construction industry jobs are attractive for a number of reasons. Many positions require minimal education requirements, and the pay, benefits, and job security are all very good. Most potential workers with a high school diploma are qualified, and on average, they can make about $10,000 more than in other industries with the same educational requirements. According to the U.S. Bureau of Labor Statistics, the average salary of a heavy equipment operator or construction worker is around $47,000 a year. Heavy equipment workers typically operate excavators, motor graders, loaders, dozers, forklifts, asphalt spreaders, and other industrial trucks and tractors. In addition to operating the equipment, workers will learn other related roles such as cleaning, maintenance, and repairs of the equipment, creating equipment reports, and coordinating machine functions with coworkers. Despite significant obstacles, the heavy equipment industry is flourishing, and with the benefits of being a worker in the industry, the role looks very promising!
Originally published at https://www.bloglovin.com on January 6, 2021.