CRITERIA FOR EVALUATING USED MACHINERY

 

For anyone setting up a business where machinery is involved, the biggest dilemma is whether to buy new or used machinery. While in some cases buying used machinery is the right way to go. Below are some criteria you can check before buying:

Model
       Based on your application & requirements, you will be selecting the make, model, and range of the machine.

Operating hours
We can assess its lifespan by doing a comparison between how long a machine has been under operation to how old it is, this can help to determine whether it has been overused or underused. On average, every piece of equipment works 8-12 hours a day for 25 days a month, so there will be approximately 2000 working hours per year. 

Aesthetic condition
        Aesthetic condition is about the look of the machine. To understand the condition, look if there are any cracks on the structure, any welding carried out, and how the paint looks are very important.

Machine's undercarriage
For any machine the undercarriage is important, the undercarriage life is based on working hours and site. The undercarriage is of metal parts that gradually undergo wear and tear. If the machine does more marching then the undercarriage wear will be more.  While selecting a machine please check how much the wear and tear of the undercarriage parts. If it is used 50% or above, you have to calculate the cost in the next operating hours. By keeping the undercarriage in good condition, you can count on improved safety and efficiency from the machine.

Engine condition

When you buy a machine it’s important to ensure that the engine starts. After the machine gets started, look for the condition of the smoke whether any black or white smoke appears. If no blow-by is seen then the engine condition is good, in case any blow-by is noticed it is better to go for the engine compression test.

Check the hydraulic operation
It is important to check the hydraulics during the inspection process. For hydraulic operation check for any leakages, check for any hoses that are hard, and make sure there is no lugging in operation.  

Boom Arm and bucket operation
Check the connection points around the bucket, arm, and boom for bends, cracks, and substantial dents. Check for any leakages in the cylinder. Check to see if the pins are free-moving and the bushes are tight.

So before buying used machinery ensure to check these points and happy buying Infra Engineers India Private Limited is specialized in used machinery trading and for any assistance please feel free to contact us.

 

 

THE DEMAND FOR USED CONSTRUCTION EQUIPMENT & HEAVY MACHINERY IN THE AFRICAN MARKET

THE DEMAND FOR USED CONSTRUCTION EQUIPMENT & HEAVY MACHINERY IN THE AFRICAN MARKET

The face of the African construction industry is changing; more projects on the continent are getting bigger and more complex, currently the annual growth in the demand for heavy construction equipment has remained steady at 4.5% since the second half of the 1980s.

However, demand has changed in terms of region, with the fastest annual growth (about 9%) reported in South Africa and the slowest (about 3%) observed in few unstable countries. The increase in the sales of construction machinery is being fuelled by such factors as the need to expand infrastructure, to construct residential, nonresidential buildings, and to exploit natural resources.

The rapid growth in the overall economy of many African countries has accentuated the need for improving infrastructure. Governments, development authorities and even companies have begun investing in infrastructure development projects in several African countries. Moreover, many African governments have invested heavily in irrigation and mining projects across the continent. All these factors have contributed immensely to the increased use of construction machinery

The key determinant of spending for such equipment is the ability and willingness of sovereign nations and private sector firms to commit funds for fixed investment. This in turn is influenced by a host of factors, chiefly per capita income, the condition of existing infrastructure, the rate of urbanization, and various social conditions ranging from traffic congestion to housing shortages.

It’s approximated that the construction machinery industry in African market worth US$900 million is undergoing a steady transformation by moving from a low volume, intensive use of equipment structure to high volume, and specific use one. In the coming years, the major segments of construction machinery that are expected to grow are excavators, loaders, dozers, dumpers and cranes.

It has been witnessed that unreserved auctions managed by internationally acclaimed companies have also benefited from the flurry of activity in the construction, mining and irrigation sectors in many African countries. Many auctioneers of used and refurbished machineries are riding the boom wave with many bagging orders from African countries. Most of them have managed to bag substantial orders from Africa with many registering as high as a 20 per cent increase in sales to African nations.
Typically African purchasers emphasize lifetime costs, access to credit, high product quality, and maintenance support.

Some counties like Sudan in Africa have smaller buyers who will actually look at price, as they have limited access to credit; parts availability also is crucial, as they buy used equipment.

Rising demand in Africa

In developing nations, there is a clearcut imperative to put in place utility plants and pipelines and a is a dire need to construct low-cost housing to accommodate a fast-growing urban population.

The boom has started a rippling effect touching various other spheres of activity that are not directly related to the construction industry. Manufacturers of ancillary products such as crane ropes, cables, pulleys and buckles too are benefited from the boom.

  Source: http://constructionreviewonline.com/2015/01/demand-used-construction-equipment-heavy-machinery-african-market/

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3,861 Companies Receive Registration Certificates from National Council for Construction (NCC) in Zambia

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3 861 certificates have been issued to construction companies in the 2014-2015 registration period by theNational Council for Construction (NCC) in Zambia.

According to Patrick Kampengele, the National Council for Construction (NCC) in Zambia Board Chairperson, out of the registered 3,861 companies, 95 percent of the companies were local while 5 percent were foreign.

Kampengele also noted that the number of registered companies was expected to rise to over 4000 by the end of the year.

There was also training for 378 students by NCC on skills such as operation of earth moving equipment, paving technologies and management of consultancies. Kampengele further noted that some of the courses being taught had been oversubscribed something which showed the need to accommodate more students to increase skill in the construction industry.

The Minister for Transport, Works and Supply, Yamfwa Mukanga noted that the construction sector had to address the gaps on inadequate legal framework to adjust the industry successfully.

Minister Mukanga noted that the industry was facing rise in project costs which was as a result of rice in raw material prices and strength of the Kwach as compared to other currencies.

Other challenges faced by the construction industry included lack of access to quality materials, scarce and incomplete designs, delay in site instructions being given by consultants and many more factors.

Mukanga further noted that NCC was in the progression to review the NCC Act no:13 so that the needs of modern society can be met in a global form.

Source:http://constructionreviewonline.com/2015/07/national-council-for-construction-ncc-in-zambia/

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Construction equipment industry demands cut in excise duty

The construction equipment industry has sought cut in excise duty from the government in the wake of a severe drop in demand due to slow execution of infrastructure projects.

Indian Construction Equipment Manufacturers Association (ICEMA) has asked the government to implement relief measures as the "industry has already witnessed a negative growth of over 30 per cent during the past two years and is recording new lows every month in sale of equipments."

"The ICEMA has demanded excise duty cut from the government on earthmovers and construction equipment in order to help survive the adverse scenario," ICEMA President Amit Gossain told PTI.

He said the industry has been playing a pivotal role in building infrastructure but has been hit due to a sharp decline in execution of infrastructure projects in the past two-three years.Land acquisition issues, absence of environmental clearances and severe deterioration in financial health of companies in the space has hit the sector's growth and many firms have already approached the corporate debt restructuring ( CDR) cell.

"The severe slowdown in demand has led to glut of inventory of equipments with the manufacturers and its authorised dealers. It has now reached a stage that is forcing the industry players to resort to periodic shutdown at their manufacturing facilities, leading to low morale and sombre mood among the workforce," he said.

Gossain is also the Chairman of CII Committee on Solid Waste Management.

News Source : http://articles.economictimes.indiatimes.com/2014-02-16/news/47379787_1_excise-duty-infrastructure-projects-construction-equipment

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Komatsu and GE Transportation sign agreement to establish joint venture for development of next generation mining equipment

Komatsu and GE Mining, a division of GE Transportation, have announced a new collaboration to develop next generation mining equipment.

By combining their expertise in mining equipment and propulsion systems, the companies will help meet the needs of customers and partners worldwide, with an initial focus on developing solutions to increase customer productivity and safety for underground mines.

The new company, Komatsu GE Mining Systems, LLC, will be located at the GE Transportation facility in Erie, PA and operations will begin in April 2014. Komatsu and GE will each own 50% of the new company.

Komatsu and GE Transportation have been partners for Komatsu electric dump trucks for use in open-pit mines, for which GE has supplied electric drive systems. By further building on the existing partnership, the new company will combine GE’s electric power expertise, electric drive systems, and battery technologies with Komatsu’s vehicle and ICT technologies for mining equipment to deliver innovative solutions to global mining customers.

Komatsu Ltd. (TSE: 6301) is a leading international manufacturer of construction and mining equipment as well as industrial machinery. In the construction and mining equipment business, it operates 42 plants in 13 countries. Komatsu is also the industry’s pacesetter in ICT applications, such as KOMTRAX (Komatsu Machine Tracking System) equipped in over 330,000 construction equipment working around the world, Autonomous Haulage System with unmanned mining trucks deployed in Chile and Australia, and GNSS-guided intelligent Machine Control dozers. For more information, visit the company’s website at www.komatsu.com

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website atwww.ge.com

GE Mining, a division of GE Transportation, can help carry your business through every step of the mining process, offering mining products, services and solutions in surface and underground mining. From the delivery of reliable power in remote regions, to water supply and management, to maximizing the output of your equipment our solutions are catered specifically to your business’s challenges in the most productive, most efficient, and even more importantly, the safest way possible. GE Mining offers global customers AC & DC electric drive systems for heavy- and medium-haul off highway vehicles, tethered electrical and battery vehicles and support equipment for intrinsically safe underground applications and a suite of additional equipment, services and solutions to solve your business’s needs. For more information, visit www.getransportation.com Komatsu Australia is the Australian and New Zealand distributor for Komatsu construction and mining equipment.

Source : http://www.miningweekly.com/article/komatsu-and-ge-transportation-sign-agreement-to-establish-joint-venture-for-development-of-next-generation-mining-equipment-2014-01-30

HEAVY MOBILE EQUIPMENT MARKET TO IMPROVE IN 2014

The heavy mobile equipment industry is expected to show steady improvement in 2014, according to a report from Great American Group Inc. The heavy mobile equipment industry is expected to show steady improvement in 2014, according to a report from Great American Group Inc. The report notes that the expansion of domestic oil and gas operations and commercial construction rebounds helped the industry thrive in 2013.

“The various sectors of the heavy mobile equipment market demonstrated growth in the fourth quarter of 2013, and are expected to continue to do so in 2014,” said Michael Petruski, executive vice president and general manager of Great American Group’s Advisory and Valuation Services division. “While new regulations do present challenges, the domestic market for heavy mobile equipment is strong and dynamic, and continues to climb toward pre-recession levels.”

Fracking has had a major impact on domestic manufacturers as the low-cost ethane found in these deposits has made the U.S. competitive on a global scale. These developments have spurred a number of new chemical and plastic construction projects to expand existing facilities and bring new processing and manufacturing plants online.

For more information about industry trends in cranes and lift equipment, construction equipment, intermodal and rolling stock, download Great American Group’s latest Heavy Mobile Equipment Monitor.

Source : http://www.constructionequipment.com/heavy-mobile-equipment-market-improve-2014

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Volvo Construction Equipment Rounds off 2013 with Sales Up 3%

A slowly recovering global market helped Volvo Construction Equipment round off 2013 with sales up 3% in the fourth quarter, deliveries up 9% and improved market share, especially in compact equipment, while demand in the mining segment remains soft.

In the fourth quarter of 2013, Volvo Construction Equipment reported that net sales increased by 3% to SEK 13,005 compared to SEK 12,572 in the same period of the preceding year. When adjusted for currency movements, net sales increased to 6%. These improved figures are due largely to higher sales of smaller equipment, helping to boost deliveries by 9% during the quarter. Demand for larger machines, especially in the mining segment, remains subdued, however.

Operating income was up 16% during the period, at SEK 272 M, compared to SEK 235 M in the same period of the previous year. Operating margin also saw improvements in the fourth quarter, at 2.1% – up from 1.9% in Q4 2012.

Late improvement rounds off challenging year

Despite the sales increases in the final three months, for the full year 2013, Volvo CE saw sales decrease by 16% to SEK 53,437 M, compared to 63,558 M in 2012. Operating income was also down during the year, a result of tough price competition, weak product mix, low capacity utilization and unfavorable exchange rates, to SEK 2,592 M, down from SEK 5,667 M in the preceding year. Operating margin was also affected, slipping to 4.9% in 2013 from 8.9% in 2012.

These figures reflect the general weak market conditions experienced during the year.

Growth in 2014

The prospects for 2014 are expected to show some improvements as global markets recover. For 2014, the total markets in China and Europe are expected to increase in the range of 0-10% measured in units, while North America, South America and Asia (excluding China) are all expected to be in the range of minus 5% to plus 5%.

“For 2014 we expect a slight improvement in market demand, mainly driven by China and Europe,” commented Martin Weissburg, the incoming president of Volvo Construction Equipment, who joined the company on January 1, 2014.

NEWS SOURCE: VOLVO CONSTRUCTION EQUIPMENT FEB 7, 2014

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