Bulldozers (also known as dozers) enjoy an advantage over other types of heavy equipment. Many industries use them, and some of these are the foundations of the economy. These include construction, civil engineering, and agriculture. The different components make them multi-functional as well. For these reasons, the global demand for bulldozers will increase. From 2017 to 2019, the compound annual growth rate (CAGR) could reach over 7%.
Factors That Promote the Demand for Bulldozers
The continuous need for bulldozers, especially in Australia, can be due to the following:
1. Rental Options
Like most types of heavy equipment, dozers cost a lot of money to buy. This can prevent small and medium enterprises from engaging in large industries such as construction. To further stimulate both the demand and these sectors, some companies in Australia now offer bulldozer for hire.
This service helps level the playing field. Even new businesses now have access to the same types of heavy equipment that big competitors use. It is also scalable, which means that they can choose to hire more units as the demand grows or cut back when the need declines. This setup, therefore, helps provide companies significant control over their cash flow.
Third, hiring bulldozers can prevent companies from applying for massive debt. In turn, they can be more flexible over the use of their revenues. They can also reserve the financing option for a much bigger capital requirement.
2. Population Growth
Australia’s population is increasing. According to the data from the Australian Bureau of Statistics (ABS), the country had close to 400,000 people more in 2017. Overall, within the period, about 25 million chose Land Down Under as their home. It also represented a 1.6% increase despite the fact net migration (or the difference between people coming in and out) declined.
In Queensland, the population already reached 5 million, and analysts believe it will experience rapid growth in the coming years. As the population increases, so should the infrastructure. For example, it can potentially boost the demand for housing. It may mean the conversion of some lands in the country into urban areas. Both of these will require bulldozers. The dozers are essential in digging and excavation processes. They are also helpful in smoothing out rough terrains.
Bulldozers are not only robust machines. They are also becoming more efficient. An Israeli company, for example, partnered with Caterpillar, one of the most popular heavy equipment brands, to design an autonomous vehicle. If it becomes successful, then it can help address the labour shortage in countries such as Australia.
Some already feature global positioning systems (GPS), which can promote higher performance accuracy. Others are becoming more eco-friendly. They might need a much lower amount of fuel, or they might have a longer service life and better fuel economy.
The demand for bulldozers is due to external factors such as population growth. It can boost the growth of construction and civil engineering, which need these types of equipment. The dozer sector, though, isn’t complacent. It also exerts effort to make sure the material remains relevant by introducing useful tech and making it more accessible to small and medium enterprises.