Where is our business?

Where does the demolition industry currently stand?

Is there any profit to be made from carrying demolition contracts?

Does it make any sense to produce specialised equipment (attachments and machines) for demolition contractors?

Even though these are very tough questions, it is not unusual to hear them today.

With the global economic recession, the demolition industry is questioning itself, as are most sectors in the construction industry around the world.

From a contractor’s perspective, there are some signs that suggest that the demolition industry needs to change the way it does business: fewer contracts are available; lower prices are on offer for the same work; there is tough competition from other demolition specialists and also from general contractors…

This global situation means that less profit (in most cases) is being made, while general costs have not changed: similar salaries are being paid and the cost of new equipment or maintenance are still similar.

In general, contractors are trying to avoid buying new equipment by extending the service life of the fleets they have.

From the manufacturer’s perspective, the situation looks similarly difficult. Highly specialized new machines and attachments have been designed for the demolition industry, but customers are less able to afford them in today’s current market conditions.

Contractors are therefore now looking for equipment that can be used across a wider range of applications, using a greater variety of attachments.

The good news for everyone is the cyclical nature of the global economy, and by extension the construction sector, means that conditions will improve, eventually, and countries will see their industry start to grow again.

Suppliers will find contractors with worn out equipment that will have to be replaced; contractors will buy new and more efficient tools; clients will get…???

Here is one of the crucial questions for the industry. What do our customers, those that hire demolition contractors, want and need?

It is very difficult to answer such a question, since there is no “Rosetta stone” that will interpret the market and give us the answer. There are many types of customers, as there are many types of demolition contractors, manufacturers and equipment.

Even although it is very difficult to set a standard, we know that the market requires, in general: expertise (the ability to do the job), safety (zero accidents), timeliness (the work is carried out in the timeframe required) and, and of major importance, economy (yet contractors still have to be profitable).

The EDA, as the central meeting point of the European demolition industry, faces an on-going challenge to provide a forum for specialized associations, contractors and suppliers looking for answers to this unique question: Where is the business for the demolition industry?

For that reason, and now more than ever, EDA organizes its annual industry conference. This year it will be held in the city of London, where the association will have a roundtable covering this topic, with the participation of specialists from all over Europe.

For more information, visit the association’s website (www. europeandemolition.org) and sign up for this unique networking opportunity.