While 2019 wasn’t 2018 or 2017 in terms of industry growth, the year can generally be chalked up as another good one for contractors, producers and others operating portable plants.
Construction activity carried on at a healthy rate – one some economists describe as more normal – providing plenty of opportunities to put portable plants to use.
The pace of construction activity was hardly the only thing to change, though. Some ongoing changes related to portable plants persist, including how users engage equipment and the types of offerings out there.
Permitting woes present entryway
For one, the shift from stationary plants to mobile equipment continues – and not just here in the United States, but in markets around the world.
This shift is especially true in the crushed stone, sand and gravel market, where producers are finding it increasingly difficult to successfully permit new mine sites. The permitting barriers going up are only growing in number, begging the question of where aggregate will be sourced in the years to come.
Fortunately, some producers are having success opening pits with portable crushing and screening equipment that promises less production than the massive stationary systems traditionally utilized.
On brands, partnerships and rentals
The number of portable plant brands available in the U.S. continues to expand, as well.
This development undoubtedly produces a more competitive marketplace, giving users a bigger pool of brands from which they can choose.
The consolidation of suppliers continued into 2019, with key suppliers coming together through mergers, acquisitions and other means. Back in January, for example, McLanahan Corp. formalized a partnership with Anaconda Equipment to distribute and sell Anaconda’s line of mobile track equipment. Later in the year, Metso announced it had acquired McCloskey International.
In both instances, the companies with the more expansive product offering identified a partner that makes them a more complete solutions supplier.
But as these sorts of partnerships are formed, users aren’t necessarily purchasing equipment like they once did. The trend at the moment is toward renting equipment.
“Ten years ago, rental purchase orders were at 23 percent,” says Alistair Forsyth, group president and managing director at Anaconda. “Seventy-nine percent of all deals were RPOs in 2017. It’s governed by the economics of the country at the moment.”