Page 61 - Built Expressions - Online Construction Magazine - November 2014 Issue

Cover Feature in improving the availability of equipment exchanges can help standardize training requirements, fnancing for buyers. Setting up in- deepen the secondary sales market. along with periodically evaluating house fnancing arms or long-term Atlas Copco, Caterpillar, and Volvo all the training needs of the sector and tie-ups with banks and non-banking offer buyback schemes in developed developing plans to address those fnancial corporations (NBFCs) markets. needs. Global benchmarks can help can also be considered. Financing identify best practices for manpower availability can also be addressed Availability of skilled manpower development. through dealers. For example, some • In developed nations such as the • OEMs can take proactive steps OEMs have been active in this space United States, stringent requirements in setting up training avenues through exclusive contracts with and mandatory qualifcations for through tie-ups with different types NBFCs and by launching dealer-run operators and mechanics ensure that of players. Tie-ups with industrial rental operations to improve rental there is a high demand for skilled training institutes to provide vocational penetration for their equipment. manpower from the user industry. training have already started. OEMs • Financing penetration can be further Better awareness of the benefts of are also looking at partnership strengthened by reforming laws using skilled manpower, along with opportunities with professional pertaining to equipment rental and mandatory qualifcations, can also training companies in collaboration usage. A nationwide general sales help boost demand in India. with state governments and are tax could help bring uniformity • Countries such as Australia also using the support and network of in imposed taxes (for example, ensure availability of funds for non-governmental organizations to as implemented in Australia), training manpower through levies on offer subsidized training programs rather than the varied indirect construction projects, the proceeds for underprivileged youth. taxes currently being collected by of which go to the Construction individual states. A national ECE Training Fund. Dedicated grants and Components registration can also eliminate the scholarships for manpower training • OEM-supplier collaborations and need for paying multiple lifetime in India can help the long-term risk-sharing contracts have been registrations with regional transport sustainability of such programs. used in the automotive and aerospace offces, as is the current norm. • Industry-body coordinated training industries and have helped suppliers • Buyback schemes and used- program guidelines can help in capacity planning to meet market demand. For example, Maruti and other automotive OEMs often engag A national ECE registration can also eliminate the need for in supplier capability development paying multiple lifetime registrations with regional transport to raise quality standards. The ECE industry can identify areas for closer offces, as is the current norm. collaboration with suppliers to ensure their healthy growth with the industry. • OEMs can support suppliers through technological collaboration and help raise R&D standards. R&D establishments can be further set up with industry and government backing to drive indigenous technology. Laws mandating local technology can also help improve technology adoption. This has worked well in the aerospace industry, where adopting the offset clause, which mandates more than 30% local sourcing for foreign aerospace contracts, has helped improve technology standards at local suppliers. • Focus on indigenization can also help suppliers develop India-centric, cost-competitive offerings with V No Vol: 3 Issue: 11ol: 3 Issue: 11Vol: 3 Issue: 11 November 2014vember 2014vember 2014 Built Expressions PG 61Built Expressions PG61 No