Navigating Challenges to Embrace Automation
The construction equipment industry in India stands at the cusp of a technological revolution, one that promises to reshape the landscape of infrastructure development in the country. However, as industry leaders and experts agree, the road to modernisation is fraught with challenges ranging from high costs and technological adoption to insufficient legislation and a lack of skilled manpower. Yet, the potential for India to emerge as a global player in the sector remains strong provided these hurdles are addressed effectively.
The push for automation
As automation continues to make inroads into various industries worldwide, the construction sector is no exception. Automation, while still in its nascent stages in India, is set to change the way construction equipment operates. According to Rajiv Chaturvedi, Vice President, Hyundai Construction Equipment India, the industry faces a major obstacle in both the understanding and acceptance of automation technology. “People don’t even know how to log into the key,” he remarked, highlighting the gap in knowledge about advanced equipment, such as dumpers with integrated systems that track and monitor their activities.
The high initial cost of automation is another significant barrier. For many Indian customers, the price of cutting-edge technology remains prohibitive. Chaturvedi emphasised the need for collaboration between OEMs, the government, and academic institutions to drive down these costs. Drawing parallels with the mobile phone industry, where global innovations became affordable and accessible to all, he believes the same approach is needed for construction equipment.
Safety monitoring technologies, like drones and IoT sensors, are another area where significant advances are being made. These technologies allow for real-time monitoring of construction sites, ensuring that equipment is functioning correctly and workers are safe. “We need to work more vigorously on safety and monitoring,” Chaturvedi urged, noting that such technologies are not only critical for operational efficiency but also for safeguarding workers on remote sites.
Despite these innovations, India remains a price-sensitive market. While automation and safety technologies offer immense potential, their widespread adoption depends on making them affordable to the masses. For India to become export-ready, technology integration must be achieved without pushing costs beyond the reach of local customers.
Sustainable practices
Sustainability has become a buzzword in the construction industry globally, and India is no exception. However, the adoption of recycling technologies, which are crucial for reducing environmental impact, remains slow. Jaideep Shekar, Managing Director, Terex India, identified a key challenge in the industry: while there is significant focus on low-cost infrastructure development, quality often takes a backseat. This lack of emphasis on quality is a significant roadblock in the adoption of newer technologies, including telematics—the technology that allows for real-time tracking and analysis of equipment performance.
Recycling construction and demolition waste presents a huge opportunity. Shekar pointed out that globally, around 40 to 50 per cent of materials in construction are recycled, a far cry from the limited efforts seen in India. While there are efforts to promote recycling, the government needs to enact legislation to drive these practices. For instance, construction waste could be repurposed for road building or used in cement production. Introducing legislation that incentivises recycling would not only reduce waste but also create a more sustainable and circular economy in the construction sector.
Further legislation is needed to regulate material quality. For example, sand used in construction varies widely across states, with no standardised specifications. Muthu Sekkar, COO, Hailstone Innovation, emphasised that India needs a unified standard for construction materials to ensure consistency and quality. He proposed legislation to regulate the size and source of sand used, potentially eliminating the need for river sand, which is often illegally sourced and unsustainable.
Fostering talent
As technology evolves, the need for skilled workers who can operate, maintain, and innovate with advanced machinery becomes even more pressing. Sandeep Kumar, National Product Head, Liugong India, highlighted the importance of collaboration between the industry, government, and educational institutions to create a robust talent pipeline. “We need to create institutes that teach equipment and machinery, much like other countries such as Japan and South Korea,” he explained.
India’s current education system, while robust in theory, falls short when it comes to practical training in specialised areas like construction machinery. Many skilled workers are attracted to other industries, such as technology and automotive, where the work-life balance and growth prospects are more appealing. To retain talent, the construction sector must become more attractive by offering better compensation, career growth, and a focus on sustainability—not only in the environment but also in terms of work conditions.
Creating a sustainable talent pool requires a shift in how the industry values its workforce. Kumar stressed that it is not just about training workers but retaining them by offering competitive wages and opportunities for growth. The government must focus on the quality of construction projects rather than merely cutting costs, allowing for better salaries and improved working conditions within the sector.
Legislation for Growth
Legislation plays a crucial role in shaping the future of the construction equipment industry in India. Muthu Sekkar identified two key pieces of legislation needed to drive the sector’s growth: standardising material quality and offering export incentives. A unified standard for materials like sand would eliminate regional disparities and improve the overall quality of construction. Additionally, incentivising exports, especially by focusing on unique products from various districts, could create a more dynamic and competitive construction equipment market.
The role of government support in driving innovation, sustainability, and skill development cannot be overstated. As Upkar Singh, Chairman & Managing Director, New Swan Group, noted, India’s low-cost manufacturing base presents a great opportunity to develop construction equipment not only for domestic use but also for global markets. By focusing on speed, safety, and sustainability, India can position itself as a leader in the global construction equipment market.
India’s construction equipment industry is poised for growth, but the path to global competitiveness is complex. It will require more than just technological adoption—it will take a concerted effort between the government, industry stakeholders, and educational institutions to overcome barriers to innovation, standardisation, and skill development. If India can address these challenges, it stands to emerge not only as a leader in the region but also as a key player on the global stage in construction equipment manufacturing and technology.
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