Practical Benefits of Purchasing Used Machinery in construction industry
When you are working in the construction industry, you need to make intelligent business decisions; especially with respect to finances. It’s important to spend the business capital wisely to achieve sustainability and growth in the construction industry. Now, one of the critical expenditures related to the construction industry is the purchase of equipment. You will need operational and best machinery to be able to carry out the work efficiently. And while most business owners tend to rely on procuring brand new machinery (to minimize inefficiency chances), this isn’t the only option. In fact, going with used machinery comes with various practical and strategic benefit for business owners associated with the construction industry.
Below we will be looking at some of the benefits of purchasing used machinery for the construction industry. But first, let’s have a quick look at the composition of the construction industry.
Construction industry fast facts
The construction industry is one of the largest industries in the world with respect to the number of employees involved in the industry. Globally, the construction industry plays a major role in contributing to the economy of various countries. The industry is expected to see a 70% growth in the next five years. This means that the industry is set to see an increase in demand for equipment as well, which translates into more companies evaluating the best machinery procuring options to keep up with the demand. Here’re some quick facts from the construction industry:
- The construction industry is one of the largest contributing industries in the United States. The industry contributes nearly 10% to the overall GDP of the USA
- Direct and indirect jobs related to construction industry makes up almost two-thirds of all the jobs in the United States
- There are approximately three million construction machinery units in operation in the United States
- The construction industry is also one of the biggest industries in various Middle Eastern countries
- Caterpillar is the world’s biggest manufacturer of heavy machinery in the world followed by Komatsu and Hitachi at number 2 and 3 respectively.
With these facts in mind, let’s now jump directly to look at some practical benefits of purchasing used machinery for businesses associated with the construction industry:
Benefits of Purchasing Used Machinery
1) Lower Cost
This one is the most obvious benefit related to the purchasing of used equipment. Now, while for most business owners going with the brand new machinery is the best option that comes with huge upfront investment. By investing a large sum in procuring new machinery, businesses remain will limited capital to be invested in operations, maintenance or tooling upgrades; thus, effective the overall efficiency and performance of businesses.
Just like you get hit with the depreciation as soon as you buy a new car, you will have to bear the depreciation as soon as you make the purchase of brand-new machinery. In fact, in some cases, the value of new machinery can depreciate as much as 20% to 40% in the first year. Contrarily, used machinery tend to hold up its prices pretty well, given you are able to maintain it professionally. Thus, giving you a better return on investment (ROI) over its operational period.
3) Fast Delivery
Lastly, procuring brand new machinery is much more time intensive as compared to procuring used machinery. Since most of the time there will be used machinery you need available in scrap garage near your location, you can easily procure that and keep up with the business deadlines.
This article is written by Jamshed Tariq who is the Business Analyst as well as industrial writer at number one online B2B marketplace Machinesells.com