Loader Backhoes - Getting more Tech-enabled.

Major players with disruptive tech-enabled solutions transform and revolutionize what they offer based on the matrix of customer satisfaction.

Technological advancement is an essential part of the CE industry and now even more so. According to a report by Mckinsey, by harnessing industry 4.0 tools like IoT, AI and automation, processes will see 30 to 50% reduction in machine downtime; 15 - 30% improvement in labour productivity; 10 to 30% increase in throughput; and 10 to 20% decrease in the cost of quality. Organizations across the world are today exploring different emerging technologies that can help them disrupt their market and change the way they look at business operations, and own control a bigger pie of the market - no difference in the BHL market too.

Speaking about the current market trends Samir Bansal, General Manager, Off-Highway Research says, “After declining by 15 per cent in 2019, some signs of demand recovery were visible at the beginning of 2020. However, due to the Covid-19 pandemic and an unprecedented national lockdown beginning 25th March 2020, sales of construction equipment in the first half of the current year are estimated to have declined 39 per cent in 2020, while backhoe loader sales dropped by 35 per cent in the same period. However, the share of backhoe loaders increased from 48 per cent of the total market in the first half of 2019 to 52 per cent in the first half of 2020.”

According to Off-Highway forecast demand in the second half of 2020 looks promising as
most activities are now allowed under government guidelines and sales have been growing for
most equipment since July over the preceding month and over the corresponding month
of the previous year, which suggests a revival. However, the overall market for construction equipment including backhoe loaders in the country for the full year is still projected to fall significantly in 2020.

After the Covid-19 disruption, project funding has substantially reduced both in the private and government sectors. Further, credit appraisals have become very stringent and equipment buyers, especially those who have availed of moratorium benefit, are finding it very difficult to get funding, says Bansal.

He adds, “The market for backhoe loaders is expected to decline 24 per cent to 30,000 units in 2020 but should bounce back with a 13 per cent growth in 2021, 12 per cent in 2022 and 11 per cent in 2023 to reach 42,000 units before declining 5 per cent to 40,000 units in 2024.”

The following pages peeks into some of the solutions offered by the OEMs.

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