Infrastructure Developments Grow Exponentially Post COVID
The demand for infrastructure developments has grown exponentially over the past year as construction projects resume and governments try to revive their economies via the introduction of various infrastructure projects. Projects that were initiated in 2018 came to a screeching halt in 2020 as the COVID pandemic reached its peak in 2020. From basic housing to Smart City projects which demand new infrastructure or extensive upgrades of existing infrastructure extensively.
These revised and rejuvenated projects have had a tremendous positive impact to say the least on the entire scope of the construction industry starting from the raw labour, to architects and engineers leading up the chain to logistics and manufacturers ramping up production to meet demand. Bulk earthmoving is the process of excavating, transporting, and redistributing large volumes of soil and rock to reshape the terrain for construction or land development projects.
According to market reports the construction industry market is expected to expand exponentially 15 trillion USD from the 13.5 trillion USD in 2021 and expected to arrive at approximately 22 trillion USD by 2026 (Compounded Annual Growth Rate).
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Diversifying Economy through Construction
Countries in the Middle East are quickly moving away from their dependency on crude oil and looking towards tourism which has resulted in a surge in demand not only for skilled workers, but also construction equipment ranging from excavators, backhoes, cement mixers, skid steers, bulldozers and hand held equipment.
Construction Machinery Demand
The biggest demand for construction machinery from not only the Middle East, but also from other large countries such as India, China and North America are earth-moving equipment due to their general applications that are essential to just about any type of construction jobs.
According to market analysts, the growth within the excavator segment (mini excavators to standard and large sized excavators) has grown exponentially due to their practical applications within the scope of earthworks which include among others the laying of foundations, soil grading, removal of dirt and rocks, trenching, demolition works or compacting earth and so much more. These machines are more frequently upgraded by manufacturers compared to any other construction equipment.
The latest models according to Dimitrov Krishnan of Volvo CE are equipped with the latest technologies and in the hands of professionals; the average excavator is transformed into a multipurpose tool that is capable of managing the task of a dozen different machines.
The times when different types of earth-moving machines were required to execute different types of earthmoving tasks are all but gone due to the rapid technological advancements we have been witnessing.
Demand for Excavators
Excavators for hire come with attachment options that allow project managers to choose from a host of different extended tools that enable these machines to dig, drill or demolish. It is generally because of the flexibility and versatility of the excavator that demand for these machines has grown phenomenally.
Even mini excavators are in high demand within the excavator for rental niche as these machines are not only perfect for urban development and home improvement projects due to their smaller or compact sizes, they are also more powerful than ever and are also capable of accommodating a range of extended tools making them cost saving machines.
Construction Equipment Sales
The barometer on construction equipment sales was steadily rising in 2018 before it flat lined in 2020 due to the COVID 19 pandemic.
However, sales started picking up at the height of the pandemic in the Middle East and by the beginning of 2021, the barometer went into hyper gear due to a surge in economic activity and estimates indicate that sales will breach the 100,000 units in 2022. Much of this increase in sales is directly attributed to the government stimulus agendas with emphasis on infrastructure projects more than anything else.