A few weeks back we mentioned that Jason Baynard, AVP of Inland Marine P&C at NBIS, was going to be discussing the current state of equipment and fleet shortages. His article is now available in the March issue of American Crane and Transport Magazine. We encourage you to read the full article, but here is a recap of what Jason covered.
In order for businesses to stay competitive and land new work, they need to update their aging fleets. New cranes, trucks, and other heavy equipment are crucial components of business success. However, there are currently some major issues impacting supply chains across the globe, which has led to equipment shortages, high prices, and long wait times for new machinery. As the global economy starts to shake off the effects of the COVID pandemic, these equipment sourcing issues remain a difficult challenge for many companies.
In the article, Jason discusses how the recent US infrastructure bill, along with a rebounding construction market, are causing a boom in new work, and what that means for businesses trying to source new equipment to meet this upswing in demand. For businesses to stay competitive, they need to source the right equipment to meet this demand, but how can they do that effectively in such a high-demand market?
The alternatives to buying new equipment are to either repair and maintain existing machinery, or purchase pre-owned cranes and trucks at auction. Jason discusses the challenges facing both of those approaches. A shortage in skilled labor has made repair and maintenance of existing equipment more difficult, while the once reliable institution of equipment auctions is impacted by increased demand.
Of course, all these issues have repercussions on how you insure your businesses. The article discusses the questions you need to be asking yourself when it comes to adapting to this unwieldy market, such as whether your policy has co-insurance provisions that can protect you in the event of a loss, or if your insurance carrier has limitations on total insured values by a piece of equipment or across an entire fleet.
Please visit the American Crane & Transport website to read Jason’s full article and help keep your business ahead of equipment shortages.
