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Identifying Trending Sectors: Heavy Construction Equipment Expected To Grow Close to 7 Percent



The construction equipment sector is on fire. According to subscription-based research firm marketsandmarkets, the heavy construction equipment market is expected to expand by 6.8 percent from 2015-2020. The catalyst for the surge is mainly an increase in residential buildings, road construction, and the building of hospitals/health centers, colleges and universities.

And this growth means plenty of opportunity for referral agents across the country.

Mergers & acquisitions have been the key strategies adopted by leading companies to accommodate the fast changing technologies and to increase market share. Companies have also adopted strategic expansions and investments to bridge the existing gaps in their product offerings and to end geographical constraints.

Types of equipment within the market analysis included earth moving equipment, material handling equipment, heavy construction vehicles, and other heavy construction equipment. Earth moving equipment is the clear winner, slated as the fastest growing segment in the heavy construction equipment market across the globe according to the research firm.

Another recent report from the Global Construction Market Research shows that the construction equipment market value is expected to be $192.3 billion by 2017, an increase of $48.7 or 6 percent from 2012.

Due to the significant growth in the market, businesses from coast-to-coast will be looking to purchase everything from a backhoe to an excavator. That's where North Mill comes in. In anticipation of the rising need for construction equipment, North Mill now accepts used construction equipment that is up to 15 years old and/or has 15,000 hours accrued.

As the construction equipment market continues to rise in value, referral agents are likely to see more applications for both new and used equipment. To help our referral agents guide their customers, we've listed a few quick tips for them to consider:
  1. Is your customer truly ready to make a purchase? Make sure your customer checks his or her current financial situation. Knowing whether the business has the right amount of capital to make a purchase will ease the guessing game. For example, customers can lessen the financial impact by buying used equipment that could be eligible for North Mill's construction-based program.
  2. Does your customer understand the true value of the equipment? One tried and true way to better comprehend the real value of a piece of equipment is to monetize the benefit that the equipment brings to the business. For instance, how much more income will that new backhoe allow the business to add to the bottom line in a given year? The customer should compare that value to its cost. In most cases, the additional income benefit far exceeds the price of the unit.
  3. Does your customer have several projects lined up? If your customer has several projects in the queue, then now is the time to finance. Having a piece of equipment that can be used for multiple tasks can benefit customers and a referral agent can help them procure the financing.
  4. Has your customer carefully shopped? There are a number of different construction equipment manufacturers and dealers. Make sure your customer does his homework as equipment prices vary considerably by dealer and by geographic location.
  5. Does your customer know the differences between a lease and a loan and the benefits of each? Surprisingly, many business people do not fully understand the benefits associated with leasing vs. owning. You can help them by visiting the North Mill website. We have information on different financial solutions along with their respective benefits. Visit www.northmillef.com for more details.
As a referral agent, now is the time to strike. Take advantage of this growth in the construction sector and let your customers know that you're at the ready and that North Mill Equipment Finance is here to help.

For more information, please contact Don Cosenza at dcosenza@northmillef.com or calling 203-354-6018.

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