Why finance is so important to the construction industry:

 • The raw materials are expensive. The materials utilized in the construction industry: steel, iron, cement, bricks, stone, concrete, glass, and heavy equipment like cranes, concrete mixers, dozer, excavator etc., are all costly. To minimize costs, bulk purchases are made and sometimes cash payments are made to take advantage of discounts. This places a high demand on the businesses cash flow. Sometimes, for very large projects, finished blocks of the project are sold, in order to finance the completion of the other unfinished blocks. In such a situation, availing construction finance service from a financial institution proves to be very helpful.

 • The labor cost is immense. The highest cost in the construction industry is for labor. Skilled, semi-skilled, and daily wage labor, in large numbers, have to be employed for the timely execution of the project. Labor costs drain the cash flow, and if proper financial planning is not in place at the time of placing the tender, then the construction company can face a very serious financial crisis. This situation can be transformed by taking construction finance from a financial company.

 • The bid may be an underbid. To win the project, an underbid may be placed, which subsequently demands a tight inventory control, and a tighter cash flow. The strain is enormous and any miscalculated move may result in losses. The situation can be alleviated by taking construction finance from a company that provides finance for the construction industry.

 • Clients may become bankrupt or insolvent. Sometimes, clients become insolvent and thus cannot honor invoices. To avoid such bad debts, many finance companies offer bad debt protection services. The finance companies take the risk of non-payment and charge a nominal fee for this service. Moreover, coupled with invoice discounting or factoring services, almost 70% of the invoice amount is immediately available for use. This improves the cash flow and can provide resources for further construction projects on other sites. With bad debt protection services, blocked cash is freed up, management time is saved, and peace of mind is achieved.

 • Extra work is a rule rather than an exception. In the construction industry, clients expect extra work to be performed at minimum or no extra cost. Unless there is reasonable evidence to prove that the extra work has been performed, most likely, no payments will be made. This situation can be controlled by invoicing the client for the extra work, supported by reasonable evidence, and availing a construction finance service with debt protection service from a reputed finance company. The finance company releases about 70% of the payment immediately to improve the cash flow and chases the client for payment of the extra work performed. This results in peace of mind. Bibby Financial Services provides finance for the construction industry. Our construction finance solution improves your cash flow and saves you valuable management time.

Most people think of cars and trucks when they hear the name Volvo, but the company is also one of the larger and faster growing construction machinery suppliers in the world. Indeed, it can be compared to giant companies like Komatsu equipment, Caterpillar and Deere. Volvo’s construction equipment for sales.

That are expected to top $2 billion for the first time, versus sales of $1.9 billion and $1.2 billion. About 23 percent of those sales are generated in North America, while the largest portion of sales (about 60 percent of the total) comes from Europe.

Volvo has always had an excellent reputation in the construction machinery industry. The company is managed from its headquarters in Brussels, Belgium, with production facilities in Brazil, Canada, France, Germany, Sweden and the U.S. The North American operations consist of Volvo Construction Equipment North America, Inc., located in Asheville, N.C., and Euclid-Hitachi Heavy Equipment, Inc., in Guelph, Ontario, and Cleveland, Ohio. Volvo Construction Equipment is responsible for the marketing and product support of the company’s business in the U.S., Canada and Mexico. Euclid-Hitachi oversees the development and manufacturing of rigid haulers produced in Canada.

Volvo was known as VME. VME was formed, through the combination of the construction equipment divisions of both Clark Equipment and AB Volvo. Clark announced its intention to sell its entire interest in VME, so Volvo management reached an agreement to purchase Clark’s 50 percent interest for $573 million as part of its strategy to concentrate on the automotive and transportation industries. The company, renamed Volvo Construction Equipment, was consolidated June 30, 1995, at which time it became a wholly owned subsidiary of AB Volvo.

Within the rigid hauler business, Volvo has a joint venture with Hitachi – Euclid-Hitachi – of which Volvo owns a 60 percent share. That venture was formed. The company also owns the German company, Zettelmeyer, which became a wholly owned subsidiary.Volvo acquired Groupe Pel-Job, a French manufacturer of mini-excavators for sale and a leading supplier of those machines in Europe.

Volvo is the world’s leading supplier of articulated haulers, and it is a major producer of rigid haulers and wheel loaders. The company also produces hydraulic excavators – a product area it is planning to revamp completely during 1997 – and mini-excavators produced by its Pel-Job subsidiary.44 percent of the articulated dump trucks manufactured in the world rolled out of Volvo factories. It’s nearest competitor, Caterpillar equipment, accounted for about 25 percent of the market.

The wheel loader product line has always been a mainstay for Volvo. Again, the company is a leader in this market, accounting for 10 percent of total industry production and sales annually. Caterpillar and Komatsu, the leaders in wheel loaders, together represent 40 percent of the world market, followed by Volvo in third position. In the North American market for wheel loaders, Volvo accounts for about 11 percent of the market.

For more than 40 years, the Bobcat Company has been a well known name in heavy equipment for construction and farming purposes. When the term Bobcat is mentioned, it can either refer to a machine known as a skid loader or a compact excavator. These pieces of heavy equipment are actually versatile, with various attachments for different purposes, and added to the fact that they are compact, means they can be transported easily from site to site.

Operators of machinery like skidsteer loaders, or Bobcats, are required to be trained and certified by authorities on heavy equipment, such as the National Association of Heavy Equipment Training Schools (NAHETS).

When it comes to purchasing equipment such as Bobcats, it pays to find great deals from sellers. These days, you can easily find resources that sell second hand Bobcats, which can be restored for use in farming, construction, or as part of a home business. For those who know how to maximize the Bobcat, purchasing a used one can be a worthwhile investment.

Once you have your very own used Bobcat, what are can you do with it? Of course, for those business minded folks, there are lots of ways you can earn from the equipment. Here are some five ways to make money with a used Bobcat.

1. Skid steer loaders and compact excavators are perfect for rent in construction sites, especially small building projects. If someone in your neighborhood is remodeling, a Bobcat can be a good piece to have on hand, especially for moving materials.

2. You can also advertise your private company’s services to clients who need one-day digging projects, such as for gardening, pool construction, and others.

3. Since the skid steer loader can be fitted with an asphalt planer, you can also rent out your used Bobcat for road development projects, or for quick road repair tasks in your area.

4. The skid steer loader may also be fitted with a fork, such that it operates like a fork lift. Perfect for warehouses, deliveries, and wholesale shops that have palletized items.

5. For more heavy duty construction projects, your Bobcat compact excavator can have the breaker attachment or the auger, for digging holes efficiently and quickly.

As you plan to make money with the used Bobcat you purchased, you can charge a rental fee along with the fee for the equipment operator.

A heavy equipment operator works with heavy machinery like front-end loaders, cranes, compact equipment, backhoes, excavators, track hoes, bulldozers, forklifts, graders, powered shovels, sweepers, graders, rollers, trenchers, power shovels, solid waste collection vehicle and similar equipment.

There are excellent job opportunities in this field, since the need for such workers is going to increase because despite certain mitigating factors, like improving technology, which would reduce the need for manpower, there would still be a demand-supply gap on account of the increasing population and business growth. Infrastructure needs are expected to increase at a rapid pace. This will require roads, schools, hospitals and offices to be constructed. In order to cater to this growth, more and more equipment will be required, needing the services of specially trained operators. According to the current trend, this demand is going to grow rapidly and the many skilled people in this field will either retire or leave the field in favor of other occupations.

Most heavy equipment operators are engaged in the construction industry. The construction of railroads, bridges, buildings and highways requires heavy construction equipment. Along with the need for personnel in the private industries, there are employment opportunities in the state and local governments also. The earnings for a heavy equipment operator vary according to the type of equipment that he operates and the industry that he is employed in.

On the basis of the type of heavy eauipment they operate, heavy equipment operators are categorized as: (a) Operating engineers and other construction equipment operators, (b) paving, surfacing and tamping equipment operators and© pile driver operators.

For the last category of heavy equipment operators, the pile driver operators, the median hourly earnings were $21.29. Some earned between $15.50 and $30.23. Ten percent earned more than $34.04, while ten percent earned less than $11.78.

If the operator is employed in a metropolitan area, the earnings are definitely higher. The place and kind of work are the factors that determine the amount of remuneration.

With the steady increase in construction projects nationwide year after year, it’s no wonder the average price of the typical piece of heavy equipment is over $135,000. Let’s face it; we wouldn’t be able to get our jobs done if we didn’t have these behemoths available. But there are some hidden costs within their benefits.

Technology –

The technology used in heavy equipment is far beyond anything we have seen in the past and the costs to hire someone to operate a particular piece of equipment is skyrocketing. The national average for a heavy equipment operator is in the $60,000 range.

Maintenance –

Powerful heavy equipment is useless if there is no around to fix it. Working with heavy equipment is no easy task. If your company has purchased some type of machinery that has no maintenance agreement included, one major repair jobsite can wipe out the profit you had built into the project.

Theft –

Every year, millions of dollars worth of heavy equipment is stolen from the job site. Heavy equipment is tempting for thieves. The stolen heavy equipment is either parted out or taken to another area where it is sold or used by another business.

Underutilization –

When heavy equipment is underutilized your costs of acquisition skyrocket and your loss in value is occurring unnecessarily. Heavy equipment is not a cheap undertaking and you should find ways to maximize the value of your machinery. One thing to consider is renting or leasing your equipment when it is idle.

Worker injury –

Construction equipment is inherently dangerous to work around, especially for employees on foot. While heavy equipment is being operated, potentially dangerous materials may be present, electric circuits may be live, flammable or noxious liquids or gases and other potential dangers will exist. How are you prepared for these events should one occur? Remember: The best policy around heavy equipment is to take no chances.

As you see there are other things you need to consider as your fleet of heavy construction equipment grows and there are no easy answers. Talk to others in your area about how they manage their inventory and how they maintain, operate, move, and utilize their equipment.