Page 65 - Built Expressions - Online Construction Magazine - November 2014 Issue

Cover Feature Developed nations such as the United States have stringent affordable vocational training for requirements and mandatory qualifcations for construction aspiring employees. There is already some movement on this front with equipment operators to ensure that the industry employs some Indian OEMs working with skilled workers. industrial training institutes to offer training for in-house operators. Construction Equipment qualifed operators. taking some steps already, but several Components and Aggregates • Lack of coordination among more imperatives could have a positive Components and aggregates enable stakeholders. There is a lack of impact: rapid growth for the ECE industry. coordination among government • Demand driven by the user industry. In India, the industry is expected agencies, OEMs, and construction Developed nations such as the United to expand by 20 to 25% in the next companies for creating skill States have stringent requirements decade, thanks to rising demand development programs. This has and mandatory qualifcations for from the construction and mining resulted in signifcant duplication construction equipment operators industries and a growing number of in allocating resources and a lack of to ensure that the industry employs traditional applications using ECE. standardization for training programs skilled workers. For example, loader, Flourishing markets for domestic across the industry. For example, bulldozer, and crane operators are construction equipment, after-market the government has 17 departments legally required to have special sales, and exports will cause a spike in that provide different formal and licenses in most U.S. states. As demand for construction equipment informal vocational education India’s industry matures, using components and aggregates. training programs. In addition, trained manpower can improve both some construction companies have productivity and safety records, Trends Causing the Market to independently established training which in turn will lead to recruiting Expand schools for their own operators and more trained manpower for Several trends are behind the rising customer staff. operations and maintenance. demand for construction equipment • Lack of access to affordable training. • Grants and scholarships. Establishing components: Several issues are deterring easy access dedicated grants and scholarships • Growth in the domestic construction to affordable training programs for can improve the affordability of equipment industry. India’s ECE construction equipment operations. quality training and boost enrolment industry is expected to grow at an For instance, India’s industrial for training programs. This has been annual rate of 20 to 25% over the training institutes offer one of the highly successful worldwide. next fve to seven years. To take full most standardized and affordable • Training program guidelines advantage of this boom, many OEMs modes of technical and vocational coordinated by an industry body. are planning to add capacity, and training. However, there are no A sector skill council for the global OEMs are ramping up their specialized courses to train operators construction equipment industry, presence and investments in the for construction equipment such as promoted by CE industry bodies, is country. Robust growth is expected cranes, backhoes, and excavators. crucial. This body would serve two in components used in backhoe • Lack of quality guidelines. The primary objectives: to identify the loaders, crawler excavators, and industry lacks quality guidelines and skill-development needs of the sector wheel loaders, which are often used mandatory certifcation requirements and develop a plan to address those in large-scale infrastructure projects. for employees. The government does needs. Establishing the construction • Increasing demand for after-sales not have mandatory requirements sector skill council would be a good service. Spare-parts sales are expected about quality and safety standards frst step for developing a pool of to grow in tandem with the overall for industry personnel. skilled labour, but its effectiveness ECE industry and will be boosted by a should be periodically assessed and growing, under-penetrated after-sales Skill Development and the course corrections done to achieve market. Currently, after-sales revenue Solution the long-term goals. contributes a low %age of total sales The industry would be wise to • Training partnerships between for ECE OEMs in India: just 2% address the skill gap by tackling these OEMs and other players. OEM- compared to the global average of 7 challenges on a medium to long-term level collaborations and tie-ups with to 8%. Going forward, ECE OEMs basis. The construction industry is industry bodies could help provide are expected to further enhance their Vol: 3 Issue: 11 November 2014 Built Expressions PG 65