The COVID-19 pandemic has impacted the vast majority of the construction industry. Construction projects, on a global scale, were put on hold due to quarantine and lockdown protocols.
It is estimated that the global construction market size will decline to $10,566.8 billion by the end of 2020 from $11,217.4 billion in 2019. It goes to show that the current global health crisis spared no industry and made no exception.
However, the construction industry will show signs of recovery by 2021. Furthermore, a growth of 70 percent is likewise expected come 2025. Thus, making the remaining months of 2020 the ideal period of preparation for construction equipment.
One way of preparing your construction fleet is to shop wisely for construction equipment, including those found in the second-hand construction equipment segment.
Advantages of Second-Hand Construction Equipment
Acquiring additional heavy construction equipment to prepare for the forecasted increase in construction activities is a smart move for any proprietor. However, such a move could also be a costly one if not managed accordingly.
For that matter, it is good to check the second-hand construction equipment segment of the market. And here below are some of the reasons why business owners or construction managers should invest in second-hand construction equipment.
Low Purchasing Cost
Although buying a piece of new construction equipment is a good investment, it can also have a huge impact on your cash flow. Instead of spending a significant amount of your assets on brand new equipment during this pandemic, you can purchase quality used equipment as an alternative.
This approach is viewed by many as a cost-effective strategy because you can save not just from the low initial purchase price but also from the transaction’s decreased sales tax. Hence, giving you extra leverage to allocate your finances on other important aspects of the business.
Replacement Parts Availability
Unlike other niches or industries, the technology used on most second-hand construction equipment does not immediately fade into oblivion. Newer used models still have relevant technology and features that can serve your business for a long period of time.
In terms of aftermarket construction replacements, several legit businesses can accommodate your specific replacement part needs. Therefore, making repairs much easier.
Lower Insurance Cost
Since the construction industry is a high-risk industry, insurance is a bit pricey. However, when you use second-hand construction equipment, you can take advantage of low insurance costs.
The coverage for used equipment is generally less expensive because the replacement cost for potential damages is lower than for a new piece of construction equipment.
Better Options and Foresight
To prepare for the upcoming construction industry boom, you should be wise with your purchases. Choose the best-used construction equipment in the market. Some of the widely purchased second-hand heavy equipment to consider include motor graders, backhoe loaders, and excavators.
Be wise with your selections and choose top brands with easy to find replacement products for convenient repair and maintenance purposes. Worth noting also that when shopping for second-hand equipment, bringing an expert to check the condition of the used equipment is highly advised.