Positive Drivers Infrastructure Investments: The federal and state investments in infrastructure are significant factors driving demand. The Infrastructure Investment and Jobs Act (IIJA) allocates $1.2 trillion for a wide range of projects, boosting the need for construction equipment. For example, Illinois has a $21.3 billion budget for the 2021-2026 period for major highway and bridge improvements, and Michigan is set to receive $7.3 billion in federal funds for road repairs and upgrades. Urbanization: Continued urbanization and the development of smart cities in the Midwest create demand for both heavy and compact construction equipment. According to the U.S. Census Bureau, the… Read More »
Adapting to Change The construction equipment dealership industry has always been synonymous with adaptability. In recent years, however, it has faced unprecedented challenges. From supply chain disruptions to labor shortages, these obstacles have tested the industry’s resilience. Yet, amidst these challenges, there has been remarkable progress. “We’ve seen a significant shift towards more sustainable construction practices,” notes Jessica Hayes, a construction industry analyst at Build Insights. “Companies are increasingly adopting eco-friendly machinery and implementing energy-efficient technologies.” Indeed, sustainability has become a cornerstone of modern construction. Technological Advancements The heartbeat of construction equipment dealership innovation lies in its technological advancements. From… Read More »
Reasons Behind the Skilled Labor Shortage Aging Workforce: Many skilled technicians and dealership staff are reaching retirement age, creating a significant gap in experienced labor. Educational Emphasis: There has been a shift away from vocational training in favor of academic pursuits, resulting in fewer young people entering trade professions like equipment technicians. Economic Cycles: The construction equipment industry experiences cyclicality, which affects workforce stability. During economic downturns, skilled workers may leave the industry or retire early, and when the economy rebounds, there is often a struggle to attract new talent. Perception and Recruitment: There is a persistent perception that technicians… Read More »
[Source: INEDA, 10.2018 | Keywords: Construction, Sales Tax] As a reminder, certain types of construction equipment are exempt from the local option sales tax and the local school infrastructure sales tax. That equipment is defined as: … self‑propelled building equipment, pile drivers, motorized scaffolding, or attachments customarily drawn or attached to self‑propelled building equipment, pile drivers, and motorized scaffolding, including auxiliary attachments which improve the performance, safety, operation, or efficiency of the equipment and replacement parts and are directly and primarily used by contractors, subcontractors, and builders for new construction, reconstruction, alterations, expansion, or remodeling of real property or structures… Read More »
[Source: INEDA, 01.2016 | Keywords: Construction, Agriculture, Innovations] Automation. This buzz word resonates with farmers and contractors struggling to find ways to keep labor costs down. Could autonomous vehicles and robots be the answer? The global robotics industry is expected to grow from $23.8 billion worldwide in 2015 to $151.7 billion by 2020, according to market intelligence firm Tractica. The firm predicts that most of this growth will be driven by non-industrial robots. Non-industrial markets like autonomous vehicles, unmanned aerial vehicles (UAVs) and consumer robots have been experiencing rapid growth and this growth has started to make its way into… Read More »
