Soaring demand for construction equipment — including tractors, bulldozers and other heavy machinery — has many builders struggling to find the tools they need for the job.

This issue comes at a time when 59% of Australians believe infrastructure needs are not being met in the country. Workers are scrambling to build new roads, homes and businesses while shorthanded and underequipped. What can contractors do when demand outweighs supply?

Sell Underutilized Equipment

Builders should consider selling extra construction equipment while demand and prices are high. They might also want to consider leasing their unneeded machinery as long as it’s still in good shape. Competitors will pay much more than usual for rentals.

Right now, even used equipment is often worth more than it was when brand new. Australian construction equipment sales were up 10% in the first six months of 2022, with secondhand tractor sales up by 157% and 52% more sales of used trailers and prime mover vehicles.

Make Repairs

It’s not a great time to buy new construction equipment, so it’s wise to extend the lifetime of machinery whenever possible. Even if builders normally would have sold or discarded a machine in the past, they should now consider reconditioning, repowering or rebuilding.

Downtime can be expensive — it can cost up to $1,400 a day during planting season — but the cost of a new machine may be much higher. It’s worth taking a bulldozer out of active duty if buying a new one would cost even more.

Share Eq1uipment

Large companies should be open to moving equipment between stores or central hubs. Although transportation may pose logistical challenges, it’s often a better financial choice than buying new machinery altogether.

Try Different Brands

Construction companies that have favourite, tried-and-true brands should branch out and try other services. Even if builders find their preferred brand of machinery, the price may be much higher than usual, making it illogical to buy. Contractors might consider testing environmentally-friendly equipment, such as electric bulldozers or excavators, that they would normally overlook.

Communicate With Customers

Australia is still seeing record homebuilding even as contractors struggle through equipment shortages, labour shortfalls and supply chain problems. Clients need to know that these ongoing issues may lead to building delays. Clear, honest communication can defuse tension and frustration when companies can’t finish a job by the deadline.

Extend Leases

Builders should think carefully about letting equipment leases expire. There are no guarantees they’ll be able to rent the equipment again when needed for a future project because so many other contracting companies are vying for the same machinery. Businesses should hold on tight to any item they foresee using in the near future.

Bow Out

Independent contractors close to retiring or considering selling their company have a rare opportunity due to the current demand for equipment. Some contractors may be able to sell their assets for more than they paid for them. Whether new or used, machinery is fetching exorbitant prices — and it may be profitable to retire early.

Adapting to the Situation

It’s an unprecedented time to work in the construction industry in Australia. Pandemic-related supply chain issues are exacerbating shortages of skilled workers, equipment and housing. These problems are leading to high equipment prices, low availability and tight work deadlines.

Construction companies with extra equipment in their fleet are in a unique position. Pricewise, there’s never been a better time to sell or lease machinery, but the sheer number of unfinished projects on the table means selling is a dilemma. In the end, builders must consider their situation carefully to decide how to adapt.