Globally, the construction industry is growing, with total volume of output expected to increase by around 85%, to $15.5 trillion worldwide by 20301. Despite the optimistic global outlook, the majority (57%) of this global growth is set to take place in China, India, and the US, while in many countries the pace of construction growth is still far from pre-recession levels.

Working closely with customers in the construction industry for decades, Shell Lubricants understands the challenges companies are facing in the current climate. Even in areas of continued growth, projects are increasingly competitive and companies are feeling the pressure of tighter deadlines, slower payment terms, and smaller margins.

We see many customers extending equipment life beyond warranty and opting to rent rather than purchase new machinery in an effort to maximise availability of capital and minimise operating costs. Those investing in new equipment are looking for technology that offers cost-saving potential, such as telemetry systems that can help identify problems before they result in breakdown, or new-generation hybrid excavators that can help reduce fuel consumption and cut emissions.

Many companies already apply total cost of ownership (TCO) evaluations, knowing that reducing TCO over the lifetime of any machinery is key to extracting the best possible value from the investment. Yet the impact of lubrication on TCO is too often underestimated2.

According to an international industry study commissioned by Shell Lubricants, 67% of companies do not believe that selecting a higher quality lubricant can help to reduce unplanned downtime, and 54% do not expect it to help cut maintenance costs3.

Shell Lubricants believes companies can achieve significant cost savings by upgrading their lubrication processes. Taking better care of equipment can contribute to savings from lower maintenance costs, reduced unplanned downtime and improvements in productivity.

These potential savings go far beyond what can be achieved by selecting lubricants on the basis of lowest price per litre. There are two key elements to seizing this opportunity. The first is selecting the right lubricant; the second is effective lubrication management.

There are tangible business benefits possible from effective lubrication procedures and we'll show how construction companies around the world have successfully worked with Shell Lubricants to reduce costs and improve productivity.

Thomas Mueller, Shell Lubricants Global Sector Manager for Construction

  1. Global Construction Perspectives and Oxford Economics, ‘Global Construction 2030’
  2. Total Cost of Ownership (TCO) is defined by Shell Lubricants as the total amount spent on industrial equipment, including cost of acquisition and operation over its entire working life, including costs of lost production during equipment downtime
  3. This survey, commissioned by Shell Lubricants and conducted by research firm Edelman Intelligence, is based on 406 interviews with Construction sector staff who purchase, influence the purchase or use lubricants / greases as part of their job across 8 countries (Brazil, Canada, China, Germany, India, Russia, UK, US) from November to December 2015

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