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Fewer Claims, Better Reputation

Heavy construction equipment encompasses a variety of large, powerful machines used in the construction industry for numerous tasks. This robust machinery includes excavators for digging and trenching, bulldozers for pushing soil and sand, loaders for transporting materials, backhoes for both digging and backfilling, cranes for lifting and moving heavy materials, dump trucks for hauling and dumping materials, motor graders for levelling and grading surfaces, compactors for compressing soil, pavers for laying surfaces, drilling rigs for creating holes, and concrete mixers for mixing and transporting concrete.

 

According to the Global Heavy Construction Equipment Market Research Report, the heavy construction equipment market was valued at USD 195.04 billion in 2023 and is projected to reach USD 273.94 billion by 2031, with a compound annual growth rate (CAGR) of 4.48% during the forecast period 2024-2031.

Factors Driving the Expansion of the Heavy Construction Equipment Market

Urbanisation and population growth increase the need for infrastructure development, including roads, bridges, buildings, and public utilities. Governments worldwide are investing in infrastructure projects to stimulate economic growth and improve public services. These investments involve large-scale construction projects requiring heavy equipment. Additionally, the need to refurbish or replace aging infrastructure supports market growth.

Integrating new technologies into heavy construction equipment, such as GPS, IoT, and automation, has enhanced efficiency and productivity, making these machines more appealing to construction companies. Manufacturers are increasingly adopting advancements from Silicon Valley, such as telematics, autonomous machinery, and electromobility.

Moreover, stricter regulations and a growing awareness of the need to reduce carbon emissions have driven the adoption of renewable energy sources and the electrification of construction machinery. The increasing demand for resources like minerals and rare metals also fuels the need for heavy construction equipment in mining operations.

Opportunities Arising from Market Growth

The expanding heavy construction equipment market presents significant opportunities for major players like Caterpillar, Liebherr AG, Terex Corporation, Volvo Group, and Komatsu to grow their businesses and strengthen their market positions, especially in emerging economies where infrastructure development is a priority.

These companies can also capitalise on the expanding market by innovating and improving their products with advanced technologies such as automation, telematics, and electrification. However, maintaining impeccable quality remains crucial.

Quality Defects are Expensive

Heavy equipment is expensive, and quality issues that cause downtime on construction sites are costly. Defects lead to higher maintenance and repair costs, resulting in warranty claims and the need for manufacturers to provide additional support.

Warranty Claims Eating Into Profit Margins

Heavy equipment manufacturers often gauge their product quality by the number of warranty claims they receive. Resources spent on managing these claims could be used for other profit-generating activities, such as new product development or market expansion. This opportunity cost can impact overall profitability. Additionally, frequent warranty claims can damage a company’s reputation, leading to a loss of customer trust, decreased sales, and reduced market share.

Identifying the Root Cause Quickly and Efficiently

When technical problems arise, such as vibrations, the quality assurance department must quickly identify the root cause. This task is challenging, especially with large parts with complex shapes. Manual tools like measuring tapes or calipers can be inefficient, and even measuring arms can only probe points selectively, often taking an entire day without providing a complete picture.

With a 3D scanning solution, quality professionals can capture the full 3D dimensions of surfaces, regardless of size and complexity. They can then compare these 3D models with CAD data to identify discrepancies and check critical features like hole positions and axis alignment. This detailed 3D scan data enables quicker and more accurate identification of root causes, helping resolve technical issues described in warranty claims.

Reducing Warranty Claims

Access to comprehensive, accurate 3D data allows quality assurance teams to effectively address product defects’ root causes. This efficiency helps them move from reactive quality assurance to proactive quality control. Ensuring that welded parts adhere to defined quality criteria before assembly and shipment reduces the likelihood of malfunctions or breakdowns.

Investing in quality control results in better-quality products, reducing costs associated with warranty claims, repairs, and customer complaints. Higher-quality products are more likely to meet or exceed customer expectations, leading to greater customer satisfaction, repeat business, and positive referrals.

A reputation for quality can enhance a company’s brand image, attracting more customers and potentially increasing market share. A strong brand reputation also allows companies to maintain higher prices and benefit from higher margins, as customers are generally willing to pay more for reliable and durable machines.

Confidence in 3D Data

Quality professionals must trust the reliability of their measurement data to avoid constantly questioning its accuracy.

To learn more about ensuring the reliability of 3D measurements, read our blog: “Trusting your 3D measurements: ensuring accuracy, repeatability and reliability”

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