From industry growth to safety and security concerns, industry trends present opportunities and challenges for mining and large construction companies. The key to capitalising on these trends lies in an unexpected area: your surplus, idle, and obsolete assets, from mobile earth-moving equipment to site services and utilities.
Here are four major trends affecting your industry and how an effective program for managing surplus assets helps you make the most of them.
The Opportunity: With commercial and residential building increasing significantly, the construction industry in South Africa is expected to grow 6.1% in 2021. To keep pace with growth, industry leaders are increasing productivity with innovative technologies and processes such as prefabrication, modularisation, and robotics.
How Surplus Management Can Help: Innovation often makes what came before it obsolete. What will you do with mining and construction equipment you no longer need? By selling your redundant equipment on the secondary market through a surplus management program, you can turn it into working capital to fuel innovation.
The Opportunity: Lean has helped industries such as manufacturing increase efficiencies and profits. Pressed to make the most of every cent, top mining and construction companies are also exploring methods to streamline production while reducing waste and costs.
How Surplus Management Can Help: Surplus management helps you meet lean production goals by identifying and removing items no longer needed, whether through sale, redeployment, or recycling. Look for a partner that has helped clients meet lean goals by reducing waste in the form of surplus.
The Challenge: With several industry segments still struggling, many mining companies are finding it challenging to attract investors. As once-reliable sources of capital dry up, mining companies must explore alternative finance sources to stay healthy.
How Surplus Management Can Help: Selling your surplus assets provides you with an ongoing source of capital to keep your company financially stable. An asset management partner can also perform an independent, objective appraisal of your company’s value to support negotiations with potential investors.
Spotlight on Safety
The Opportunity: Safety and risk management have always been issues for mining and construction companies. The reach and speed of the Internet, however, can swiftly turn a small safety challenge into a PR disaster. To enhance existing safety measures and address newer concerns such as cybersecurity, industry leaders are relooking safety procedures, strengthening policies, and conducting risk assessments.
How Surplus Management Can Help: Your surplus mining and construction assets can be a valuable capital source. If you don’t remove these items carefully and compliantly after sale, however, you could potentially hurt workers, damage property, or negatively impact the environment. To mitigate these risks, look for a surplus management partner with experience handling and removing large, complex mining and construction assets.