The entire global construction industry is exceedingly dynamic due to a variety of distinct factors other than only capital, labour costs and raw materials as this particular industry is also highly dependent on construction equipment. Construction equipment such as excavators, tractors, cement trucks, hydraulic attachments, backhoes, cranes and skid steers are generally capital intensive and the prices of these equipment revolve around economic conditions, exchange rates, taxes and environmental regulations which have become big challenges for industry players.
The entire construction industry plays a significant role within the context of the global economy given the fact that 7 % of the entire global gross domestic product stemmed from the construction industry. In 2020 during the height of the COVID19 pandemic the construction market was valued at more than 6 trillion dollars and industry experts and market observers have indicated that this value is expected to more than double by the year 2030.
Apart from that, there has been a reduction in employment compared to employment rates of the industry 50 years ago due to the capacity of the latest machines that are able to perform a variety of construction related tasks due to huge strides within the scope of the hydraulic systems that most of these machines come equipped with.
Currently the industry employs more than 300 million workers all over the world and this figure will expand significantly due to the gradually increasing demand for housing and infrastructure projects and as well as expansions within the mining and extraction of raw materials, manufacturing, agriculture, logistics and other industries that require the use of equipment such as backhoes, forklifts and vehicles used to transport these heavy duty machines.
The arrival of companies or enterprises that offer excavator hire services has also increased demand for heavy machines that has increased demand of various equipment that are used within these industries on almost a daily basis.
These facts in essence provide a clearer and more present perspective on the scope and construct of the construction industry in total as a critical economic component that is growing due to heavy equipment as the manufacturing component of machines such as mini excavators, standard excavators and other types of machinery is integral to the industry that revolve around mega corporations such as Bobcat, Kubota, Caterpillar Komatsu, Hitachi, Hyundai and many others.
Fortune Business Insights released a report for the first quarter of 2023 and report clearly indicates that the global construction equipment market in total has reached $150 billion dollar and the amount is expected to surpass the $200 billion mark by 2030 based on an exponential growth rate of nearly 7% (CAGR). Within the report it was highlighted that the jump in growth was directly attributed to the ‘pent up’ demand that was building pressure between 2020 and 2021 attributed to the COVID 19 pandemic in most parts of the world due to government sanctioned movement control orders.
According to the report, apart from the hospitality industry, the construction industry was also seriously affected which had a direct impact on the heavy machine component as demand for equipment such as excavators and cranes reached an all-time low, as enterprises that provided equipment such as mini excavators for hire clocked almost zero demand for the entire year compared to previously in 2019 when mini excavators for hire were the most demanded equipment.
