The global heavy equipment industry is estimated to be sized at around 192 billion U.S. Dollars
Typically, heavy equipment is used for different functions such as hauling, drilling, excavating, paving and grading. Also, the global heavy equipment market covers various industries including oil and gas, manufacturing, military, forestry, and public works. Increasing residential, industrial, and commercial construction activities, rising public-private partnerships, and global economic growth is expected to drive the demand for heavy equipment in the coming years. Additionally, the advancement in technology is leading to the introduction of highly efficient heavy equipment, thereby, forcing the competitors in the market to reach for new levels of differentiation.
Although the global heavy equipment industry is proliferating, several challenges are restricting the growth prospects. A few factors include:
- Carbon emission: Most of the companies in this space use diesel as fuel for its operations. Use of such fuel intensifies the emission of CO2 and further increases carbon footprint and health risks. Therefore, the increasing level of carbon emissions poses a major challenge to the growth of the heavy equipment market. As a result, it is crucial for companies to identify alternative energy sources to reduce the carbon emission.
- Renting options: Today, renting heavy equipment is a viable option for a large number of businesses to reduce heavy investments by saving on the high costs of equipment. This poses a significant challenge to the manufacturers.
Challenges such as these are driving heavy equipment manufacturers across the globe to leverage the use of market share analysis solutions. With the help of market share analysis, firms can gain a holistic view of the latest trends and identify opportunities to capture additional shares in the market. These solutions also help establishments realize the amount of share that they embrace and accordingly allocate their resources.
The Business Challenge
- The client: A renowned heavy equipment manufacturer
- The client, a global heavy equipment manufacturer, based out of the US, wanted to increase market share and sustain its competitive position in the industry. As a result, the client was committed to achieving an integrated development process. They also wanted to conduct an assessment of their business process, management tools, and linkages to internal organizational touch points to increase the effectiveness of the resources and achieve their business objectives.
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Infiniti’s market share analysis experts carried out extensive research comprising interviews and discussions with leading stakeholders in the heavy equipment industry space to help the client achieve an integrated customer development process. The experts also compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
With the help of Infiniti’s market share analysis, the heavy equipment industry client carried out an organizational valuation and analysis based on the dimensions of organizational effectiveness model. This helped them identify and reach consensus on the most effective approach to achieve the goals including:
- Business process re-engineering opportunities were identified.
- Management tool improvements to balance the restructured organization and re-engineered processes have been identified.
- Restructuring performance indicators and incentives around the customer-focused goals.
Going forward, there will be much more creative freedom for autonomous developments in the heavy equipment industry as compared to commercial self-driving cars. Additionally, businesses involved in manufacturing, construction, agriculture, and other heavy industries may be benefitted by looking at the autonomous innovations of industry leaders in their sector – and better understanding how equipment autonomy may impact their operations and finances.
A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the latest heavy equipment industry trends
With rapid urbanization and advancements in traditional end-user businesses, the demand for building machinery will rise in the coming years. Market opportunity analysis plays a crucial role in the heavy machinery business sector. It takes into consideration the available technology, financial capabilities, and the competitive readiness of any venture before taking action.
It also helps in decision making, identifying new targets, realizing the competitive advantages, and helps discover unmet customer needs. To determine their market opportunities and build effective product plans, leading heavy machinery manufacturers are approaching organizations like Infiniti Research. Infiniti’s market opportunity analysis helps businesses in this sector to determine the current business requirements. Furthermore, it also assists in taking decisive actions while considering the impacts of such activities.
The Business Challenge:
A renowned heavy machinery manufacturer was facing a predicament understanding their market effectiveness regarding the potential competitors and product positioning. The client further wanted to build useful plans that would help them pursue new product spaces; thereby, expanding into new market segments. Furthermore, the client wanted to understand the market through a detailed market opportunity analysis to come up with a beneficial plan.
To identify the potential market opportunities and devise new marketing strategies, the heavy machinery client approached Infiniti’s market analysis experts. The market opportunity analysis experts at Infiniti followed a sophisticated market analytic approach, which involved taking into account various factors like technological advancements, customer requirements, geographical target regions, and future enhancement possibilities in the heavy machinery sector. Also, the market analysis experts at Infiniti created a dashboard to compile information from various proprietary sources.
Market Opportunity Analysis Solution Benefits:
- Developed business goals and strategies for building effective plans
- Identified potential competitors in the heavy machinery sector
- Built efficient intends to pursue new product spacing
- Recognized the various segment based loopholes and strategies to overcome them
- Helped in determining the strengths, weaknesses, opportunities and potential threats
- Insights into the current market knowledge
- Adapting to changes to suit market needs in a profitable fashion
- Improvised on targeting the relevant customer needs
Benefits of Our Integrated Approach:
By utilizing Infiniti’s market opportunity analysis solution, the heavy machinery client was able to come up with an innovative plan to help them venture into new product spaces. It also helped the client take crucial decisions and improve their overall market knowledge. The blended approach to analyze the market opportunities assisted the client in exploring and identifying a suitable market opportunity. It also helped the client in building better strategies to addresses the future needs of the heavy machinery sector.
A must-read case study for strategy experts and decision makers looking to develop an understanding of the manufacturing industry.
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Heavy equipment vehicles refer to heavy-duty vehicles, which have been specifically designed for assisting in construction work. Although every heavy machinery has their own standard themes, there are certain equipment within it which are specialized for specific jobs. Each type of heavy equipment has its respective place in particular industries, be it construction, moving materials, or farming. The six leading industries and categories of heavy equipment are discussed here.
Dump trucks, cranes, and bulldozers are the most prominent type of heavy machinery used in this industry. Dump trucks are used to carry dirt and other forms of sediments to build sites for laying the foundation. Cranes are used for spreading it on ground level for the building; they are also essential in hoisting up and putting in place enormously heavy objects. Bulldozers are another commonly used heavy equipment in numerous construction projects due to their versatility. These conventional types of heavy equipment seen in modernized construction contribute to faster, safer, and cost-effective building plans.
Heavy equipment plays a prominent role in this industry. The most commonly used heavy machinery in farming include tractors, off-road vehicles, harvesters, and tillers. A majority of the heavy machinery used in the farming industry is not very applicable to other industries, making them a more specialized category.The tractor remains the most widely used heavy equipment, one of the main reasons for this being its versatility. Other heavy machinery available for farming include planters, farm drills, grain carts, etc. that are strictly dedicated only to growing crops.
Land clearing is a prominent part of forestry and construction alike. However, forestry is more focused on the production of paper goods, plywood, and other tree-based products. Heavy equipment such as wood chippers, skippers, knuckleboom loaders, and feller bunchers are used to harvest wood and create many different things. Mulchers are an excellent option for land clearing.
This industry involves activities related to packing, loading, and shipping in a warehouse setting. The most commonly used heavy machinery in this sector is the forklift. Certain models of forklifts are also designed for wear and tear of a construction site and for moving around a lot of building materials. Though a few newer heavy equipment in this industry has started to pick up, the forklift has dominated this sector for a while and will remain a significant piece of equipment for both construction and shipping.
Trucks and trailers are the most commonly used heavy equipment in this industry. The trucks used for delivery are mostly in the form of semi-trucks, whereas dump trucks are widely seen in construction because they are designed to handle rougher terrain on construction sites comparatively.
Grounds care contains a set of equipment that are specifically designed for a lawn, golf course, or any other grassy property. One of the most commonly used heavy machinery in this industry is the lawn mower, which brings in a vehicular approach to the classic grass cutting. Some of the other widely used equipment include weed whackers, compact tractors, and sweepers.
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