ADTs on the production line
Delivering on South Africa’s infrastructure programmes requires an integrated approach, with capital equipment central to its execution. Alastair Currie talks to Leon Goosen, group chief executive at Bell Equipment, about the company's unique ser vice offering.
The right equipment,
the best support
How can Bell Equipment best support the South African construction market? LG First and foremost, as experts in our field, we tailor our technical advice and aftersales care package strategy to match customer requirements. This equally applies to new SMME entrants and toptier Construction Industry Development Board Level 9 contractors. Then, second, our operating philosophy is founded on the principle that if our customers are successful, we’re successful. Therefore, it’s a partnership approach from day one, which includes predictive and preventative maintenance support to maximise the customer’s machine availability.
Will 2021 see an increase in new work? After several years of depressed trading conditions, the
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construction sector is expected to show signs of gradual recovery in 2021. There’s a sense of cautious optimism in the industry. Key catalysts include project roll-outs from Sanral, the implementation of government’s Economic Reconstruction and Recovery Plans, and allied initiatives like the Infrastructure Fund. That means existing contractors will be reviewing their current earthmoving fleet and researching new acquisitions, rebuilds and upgrades. Government’s commitment to facilitating SMME growth also means that this will be a growth market. There’s a definite willingness from the private sector to partner with government on infrastructure projects. Some of these will unfold as public-private partnership ventures – a prime example being the renewable energy sector.
Rather than taking a shotgun approach, the ideal would be for government to focus on priority projects that can make a more immediate contribution to socioeconomic recovery post Covid-19 – with roads and transportation infrastructure being at the top of the list.
Why is optimal machine selection so important? For any contractor, capital equipment decisions can make or break a business. Machine acquisitions need to synchronise with the business plan and the forward order book. Key questions that need to be asked and answered include whether the equipment purchased achieves the efficiency and longer-term availability needed to sustain business operations. For example, does the OEM or distributor have adequate parts and service backup, and are they able to customise solutions
Leon Goosen, group chief executive, Bell Equipment
for your project? Then there’s the future resale value that needs to be considered, as well as whether the machine can be rebuilt for a second or even a third life. Another major consideration is the life-cycle cost. Over the longer term, the initial machine purchase price works out to be a smaller portion of the cost over its working life when you factor in elements like maintenance and fuel burn. Therefore, buyers should not only base their decisions purely on the upfront price. After all, it’s a business tool, so customers need to appreciate that buying a premium product with worldclass support is the best decision they can make.
What should contractors consider when applying for finance?
