Tag: construction and building materials market

IR23

Top Trends in the Construction Equipment Market

The recent increase in the number of construction activities around the globe leads to the path towards development. Development is a never-ending process, which is why there is always some form of construction going on somewhere. This, in turn, increases the demand for construction equipment, not only in terms of volume but also to innovate and evolve. Manufacturers are constantly innovating and bringing innovations to markets of all sizes and types. Additionally, mobility solutions have also been keeping pace as construction equipment continues to evolve.Request Free Proposal

The complexity of user demands

The construction industry is getting more and more efficient with new technologies. Today, it comes as no surprise that companies are able to build skyscrapers in a matter of few months. However, to build such marvels, complicated construction equipment are required. Users are demanding more efficiency, versatility, and durability from construction equipment. For instance, tires and tracks comprise the most expensive consumable items in a construction equipment. Contractors use such machines on a wider range of work and are under the pressure to deliver timely performance without compromising on durability. Additionally, they also want to get the highest amount of work done from machines with little capital and maintenance cost. Manufacturers are also leveraging the use of tire tracking software to help increase the awareness of the current situation and help predict future issues to minimize hourly costs.

Tracked construction equipment

To boost the performance of heavy machinery construction equipment, users are increasingly adopting tracks over tires. It is also evident in numerous industry reports which outline the growth of compact track loaders in comparison to traditional skid steers. The trend is evident in the rental, construction, and agricultural sectors. Tracks provide wider footprint better pulling power, more torque, and enhance the maneuverability and stability of the equipment. Such trends are even more prominent in places where seasons change drastically. Such tracked construction equipment usually costs less than tires and offers undeniable advantages. Additionally, manufacturers have come up with over-the-tire track (OTT) solution, which can convert a skid steer loader into a compact track loader within minutes.

Rising popularity of rentals

Let’s face it, all companies are on the lookout to cut their cost base. Sometimes it makes sense to rent the construction equipment than to make a purchase. For one, they avoid all the maintenance and depreciation costs. Also, they can make sure they make optimal use of the equipment. Buying and maintaining a large fleet of equipment carries a substantial financial burden and risk for the company. Renting out an equipment can provide companies with the flexibility to use it when needed without having to bear a huge capital expenditure.

Use of radial tires

Using construction equipment such as wheel loaders, backhoe, and motor graders to move between the local job sites is not uncommon in North America and Europe. It offers contractors productivity advantages as floating the equipment from site to site is often cumbersome. As a result, radial tires are gaining popularity as it offers better ride quality, decreased heat build-up, and reduced tread wear on hard surfaces.


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total quality management

How can Benchmarking Help Improve Cost Competitiveness in the Steel Market?

Steel is one of the top products in the manufacturing sector, and the market is getting intensely competitive with each passing day. Over the past couple of years, the global steel industry has been booming due to liberalization policies and increased infrastructural works. The fierce competition in the steel market can be undermined by the rise of Asian countries, such as India, ending the dominance of the USA. One of the biggest challenges faced in the steel market is to contain costs and increase the efficiency of their assets. Although individual players are well aware of their production assets, there is very little transparency about the cost-saving capabilities across the industry. As a result, cost benchmarking becomes a major challenge for players in the steel market. Instead of IR_Brochurefocusing on resource utilization alone, working with multiple operating points can yield a better result to overcome cost challenges.

Importance of overcoming the cost challenge

The demand in the steel market is primarily driven by the increasing the use of metal packaging materials, which is increasing at a faster rate compared to the GDP growth in the emerging markets. However, the use of steel as a packaging material is facing some stiff competition from alternatives such as aluminum, plastics, and composite materials. As a result, companies in the steel market are fighting hard to gain attractive volumes in the international steel market to tackle cost competitiveness. The global steel prices are mainly determined by two significant factors namely, overcapacity in China and low transportation costs globally. For instance, importing steel from other countries wasn’t considered to be economically viable, but low-cost global transportation has made it possible to source rebars from Turkey and hot-rolled coil (HRC) from South Korea. Additionally, for a few years in a row now, players in the steel market are facing overcapacity issues with utilization rates lingering at a low 70%, which is far from the healthy threshold of 80%.

How can benchmarking help overcome cost competitiveness in the steel market?

Steel manufacturers in the recent past have looked on to numerous large-scale programs to bring operational transformation and cost reduction in the steel market. They have resorted to benchmarks, including lean manufacturing and six sigma to eliminate waste, minimize production errors, and increase end-value for the customers. Steel manufacturers have shifted their focus to these areas to overcome cost competitiveness:

  • Companies in the steel market can improve their energy and material efficiency by looking at numerous methods including reducing yield loss in steelmaking, reducing the consumption of energy and consumables, and reducing the fuel rate of the blast furnace.
  • Manufacturers can look for ways to reduce wastage by implementing strict rules for input raw material, which will minimize the amount of rework and scrapped material.
  • Investing in automation and increasing the skill set of operators will directly improve labor productivity and optimize the
  • Increasing efficiency in maintenance, for instance, the wrench time of the maintenance workforce can be improved through the better planning and scheduling of maintenance tasks
  • Following a shared-services approach for group functions can help streamline sales and general administrative
  • By examining the total cost of ownership of various alternatives, players in the steel market can reduce their external spend when purchasing materials and services.

To know more about how benchmarking can help overcome cost competitiveness in the steel market:

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Laptop with pen and spiral notebook on desk.

Market Analysis Engagement Assists a Construction Equipment Manufacturer to Devise Effective Marketing Strategies

Lately, players in the construction equipment industry have started leveraging effective market analysis solutions to enhance their profitability and competitiveness across the industry space. Market analysis engagement includes the study of the market in terms of its strength, weaknesses, opportunities, and threats. Such engagements also help players operating in the construction equipment industry to devise effective market expansion strategies by taking drawbacks into account. Moreover, market analysis solutions have become an essential force for companies in the construction equipment landscape to gain comprehensive information about niche segments in the market.IR_Brochure

The market analysis solutions offered by Infiniti help construction equipment industry clients in gaining insights into the dynamic market space. Additionally, clients operating in this industry space can determine the potential trends and opportunities in the construction equipment industry and improve their operations.

The Business Challenge

A global construction equipment industry client with offices spread across various geographies was facing predicaments in understanding the existing landscape of the industry. As a result, they wanted to gain a comprehensive picture of key components affecting the growth of the market. Furthermore, the client wanted to gain insights into the strengths and weaknesses of competitors to build a better market expansion plan and offer superior products to their customers.

Our Approach and Solutions Offered

To deliver valuable insights to the client, Infiniti’s market analysis specialists followed a comprehensive in-depth research methodology that included discussions and interviews with leading stakeholders in the construction equipment market space. Moreover, the market analysis specialists devised a dashboard comprising relevant pieces of information. This helped the client design effective marketing strategies across all verticals.

Additionally, the client was provided with a comprehensive representation of the key components of growth factors and insights about the market’s growth potential.

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Benefits of Market Analysis Study:

  • Assessed potential opportunities and performances across geographies
  • Gathered information to identify and mitigate risks across new segments
  • Developed a robust business plan and analyzed the target market
  • Devised an efficient product marketing strategy

Benefits of Our Integrated Approach:

In a brief period of eight weeks, the construction equipment industry client was able to add values to the information provided, find new niche market segments, and operate more efficiently with the help of an efficient product marketing strategy. Additionally, the client gained insights into the vital components to target in the market space to achieve a superior competitive advantage over their peers in the industry.

A must-read case study for strategy experts and decision makers looking to develop an understanding of the construction equipment industry.

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CPG Industry

Atomized Steel Powder Market Assessment Study

Business Challenge
A leading metal powder manufacturer wanted to identify new industry segments in Europe to increase its revenue.
Situation
The client was generating over 80% of its revenue primarily from two industries, which were facing severe economic pressures. Therefore, the company wanted to identify other industry segments to supplement its revenue.
Approach
We identified key alternative segments and ranked them based on criteria such as profitability, supply-demand scenario, and manufacturing cost structure. We also helped the client gather detailed insights on the top segments to devise an effective go-to market strategy.
Impact
The client used our market segmentation information to realign its sales force and aggressively target alternative industries. It also determined a new set of potential customers within existing industries, thereby balancing the revenue share of different industry segments for the next four quarters.
IR3

Market and Price Intelligence Study on HVAC Equipment Market in Europe and North America

Business Challenge
A leading HVAC equipment manufacturer wanted to gain insights on the market landscape and market price levels of its major product offerings in 10 European and North American countries.
Situation
The client wanted to assess the landscape of the HVAC Equipment market in each country, understand the market potential, growth prospects, competitive landscape, and obtain insights on price points and price forecast based on demand and market trends.
Approach
We conducted a detailed market assessment including market size, market structure and identified key growth drivers. We also conducted in-depth interviews with key market stakeholders to derive insights on future price levels.
Impact
The client utilized our insights to quantify the market opportunities and align its strategies to use the growth drivers to its advantage. Also, it was able to adjust its price points to match industry standards and firm up future strategies based on forecast demand.
IR36

Competitive Intelligence and Benchmarking Study on Forging Industry in India

Business Challenge
A leading forging services provider wanted to understand the performance of its competitors and assess their growth strategies.
Situation
The client wanted to gain insights on the performance of its competitors and assess their key strategies specific to product segmentation, positioning, and marketing efforts, to assess its own market standing among the competitors.
Approach
We conducted in-depth primary and secondary research to understand the financial positioning of its competitors to understand their performance levels and performed an assessment of their current and future strategies.
Impact
The client used our competitive insights on the most profitable segments of the competitors and their segment-specific marketing and sales strategies to streamline its own business approach for faster growth.
Pharmaceutical packaging

Sourcing Intelligence Study on Raw Materials from Emerging Markets

Business Challenge
A leading industrial equipment manufacturer wanted to assess the potential sourcing opportunities in emerging markets.
Situation
The client wanted us to assess the possibility of sourcing raw materials including iron, aluminum, plastic, glass, and rubber from emerging markets. It also wanted to gain an understanding of the supply landscape in these markets.
Approach
We conducted in-depth primary and secondary research to shortlist potential sourcing destinations. We also conducted detailed assessments (at a country level) to obtain insights on key suppliers and rank them accordingly.
Impact
Based on our insights, the client was able to understand the supply market and shortlist key sourcing destinations that could help save costs. Furthermore, it was able to identify and shortlist potential suppliers based on their capabilities.
IPTV Service

Emerging Market Intelligence Study on Sourcing Raw Materials for Heavy Industry

Business Challenge
A leading industrial equipment manufacturer wanted to assess the potential sourcing opportunities in emerging markets.
Situation
The client wanted us to assess the possibility of sourcing raw materials including iron, aluminum, plastic, glass, and rubber from emerging markets. It also wanted to gain an understanding of the supply landscape in these markets.
Approach
We conducted in-depth primary and secondary research to shortlist potential sourcing destinations. We also conducted detailed assessments (at a country level) to obtain insights on key suppliers and rank them accordingly.
Impact
Based on our insights, the client was able to understand the supply market and shortlist key sourcing destinations that could help save costs. Furthermore, it was able to identify and shortlist potential suppliers based on their capabilities.