Construction Around the world: Vietnam

Jakarta, Indonesia – With the fast pace of technology and industrialization sector in Asia, each country’s construction industry has also developed through time. Vietnam is not an exception. Axis Capital Group, a construction company based in Singapore and is delivering high-quality heavy equipment created an overview for the latest in Vietnam’s construction industry.

According to Compound Annual Growth Rate (CAGR), the Vietnamese construction industry recorded a compound annual growth rate of 16.12% during the review period from 2009-2013. However, industry growth slowed from 19.7% in 2011 to 7.0% in 2013, due to a slump in the property market, a banking system characterized by non-performing loans (NPLs) and a sluggish real estate sector. Nevertheless, industry outlook is favorable, due to the government’s focus industrial and residential Construction. Expansion in the tourism and retail sectors, coupled with investments in infrastructure projects, will support industry growth. The industry’s output is therefore expected to record a nominal CAGR of 11.43% over the forecast period (2014−2018).

The Vietnam construction industry has considerably developed since 1986 as a result of “Doi Moi” or all-round renovation process, stepping in the general development trend and the process of gradual globalization and regionalization. However, despite the pace of economic reforms, obstacles and risks have continued to plague the construction industry. A study from CAGR shows factors causing the failure of the construction projects in the country:

1. disregard of the significance of project planning process and project planning,
2. lack of experience in executing complicated project,
3. poor design capacity and frequent design changes,
4. lack of knowledge and ability in managing construction projects
5. lack of financial capacity of owner,
6. poor performance of contractors,
7. lack of a systematic approach to managing the project and entire organization,
8. corruption and bribery in construction projects,
9. the delays in payment, and
10. Economic volatility and high inflation.

The study further provides insights on the factors contributing to the failure of construction projects across the Vietnam construction sector. Construction spending in the country rose up to 6.8% annually, second to China in AECOM report 2014. Construction market has also been increasing to 50% in 2004 despite the conflicts and complaints that have been filed against construction sector in the country while its profitability is almost 80%. It is also suggested that along with Indonesia, It is suggested that Vietnam is expected to exhibit increasing market openness over the next 12 months.

Construction around the World: Malaysia

Jakarta, Indonesia – Axis Capital Group, a construction company based in Singapore has been delivering heavy equipment all throughout Asia and Europe. With the expansion of construction and the increasing growth of industrialization all over the world, the nation’s economy has been one of the factors that help each nation’s boom and development. Let us review how developing countries have been coping with the competition in the construction industry.

According to Malaysian-German Chamber of Commerce 2010, between 2004 and 2006, Malaysia experienced a slow growth in its construction industry with average output value of RM50.9 billion. In 2007 the construction output value began to increase, up to RM 60.7 billion, and the industry recorded stronger growth in 2008 and 2009 rising to RM77.5 billion. The Central Bank of Malaysia in 2009 added that the strong growth of construction industry in 2007 to 2009 was mainly due to the implementation of construction related activities under the 9th Malaysia Plan and the high value of the fiscal stimulus package projects.

In 2010 the value added of Malaysian construction industry continues to strengthen further by 6.3% (Malaysia-German Chamber of Commerce 2012). The expansion of the industry was largely led by increased infrastructure project under civil engineering sub-sector. In 2011 the Malaysian construction recorded a moderate growth at 3.5% due to slow activity in civil engineering and non-residential sub-sector (Central Bank of Malaysia 2011). The civil engineering and special trade sub-sector register slower growth following the completion of major highway projects and maintenance and upgrading work under the Stimulus Package (Central Bank of Malaysia 2011).

In global terms and compared to other Asian countries such as China, Korea and Singapore, the size of Malaysia’s annual construction output is relatively small. With an average of 3% contribution to the total national GDP, construction industry is critical to Malaysian wealth creation and it plays an important role in the development of the country (CIDB 2006). The industry provides jobs for approximately 1.02 million people and creates a multiplier effect to other industries, including manufacturing, financial services and professional services (CIDB 2006).

Public and private sectors are important components in the Malaysian construction industry, playing a role as the clients in the industry. Due to the high value of economic stimulus package by the government, year 2007 record a high demand for construction from public sector which contributed 52% (RM48.36 billion) of the total value of projects awarded (CIDB 2009). The situation is in contrast in 2008, in which private sectors project contributed 56.4% of the total value of the project awarded. Year 2009 showed a decrease of 29.5% of total value of project awarded compared to year 2008. The decrease in the value of projects secured was due to the decline in private sectors investments, which was affected by the global economic crisis. Despite the fluctuating rate of construction in the country, few records show fraudulent acts in the industry compared to that of Singapore, India and Indonesia.

Ford Introduces New Work Trucks

Singapore - At the NTEA Work Truck Show in Indianapolis, Ford revealed its 2016 F-650 and F-750 medium-duty vocational trucks with a new engine and chassis.

The new models will be available in spring 2015 and will be available in three cab styles and three models. You’ll be able to choose from a Regular Cab, SuperCab and Crew Cab in a straight frame, dock height or an all-new dedicated tractor model for heavy towing. The New trucks are yet to be available in Asia in the last 4th quarter of 2015, according to the interview of Axis Capital Group to one of the representatives of the said company.

The look of the new trucks clearly continues the new styling established by the 2015 F-150 with grille “nostrils” as Ford calls them, saying they improve airflow and cooling performance.

The new trucks will feature the second-generation 6.7-liter Power Stroke V-8 diesel, paired with a medium-duty six-speed TorqShift automatic transmission. The powertrain will offer three horsepower and torque levels and a five-year/250,000 mile limited warranty.

The Power Stroke V-8 is the same engine powering Ford’s new F-250, F-350 and F-450 Super Duty pickups and features design improvements including a larger turbocharger and new fuel injector tips Ford says reduce noise and provide a more complete fuel burn. 

However, a 6.8-liter V-10 gasoline engine is an option for the trucks as well. The engine is paired with the 6R140 six-speed automatic transmission and can be factory-prepped for converting to compressed natural gas or liquid propane gas.

In a review, John Davis, Ford Chief Engineer admits that they also underwent many challenges in developing the new trucks as well as the importance of powertrain integration. Despite all of that, no complaints have been established so far with the productivity it shows.

“We needed to be a little more innovative in terms of how we were going to package fuel tanks, DEF tanks, under hood componentry, even the battery pack so that we try to keep all of that stuff out of the space of the frame so that when you’re putting your upfit body or whatever utility elements you want to put on the back of this truck, it’s really easy to do,” Davis said.

Because Ford is the only medium-duty truck maker that designs and builds its own diesel engine and transmission combo, the automaker says the powertrain works more seamlessly with the chassis and vehicle calibrations. Both hydraulic and air brakes are available on the new trucks.

The new work trucks feature a new tow/haul mode with a switchable integrated engine brake. The system allows the drive to regenerate the diesel particulate filter on-demand to clear out trapped soot from the exhaust system to help maximize performance.

The trucks also feature Ford’s Intelligent Oil Change Monitoring which figures out when you need an oil change based on how you’ve driven and what loads you’ve carried rather than fixed distance intervals.

Major construction cities such as Beijing, China, Singapore, Jakarta, Indonesia and Kuala Lumpur Malaysia are also waiting for the release of this power truck in Asia soon.

Make Sure You Don’t Set your Machinery on Flames

Jakarta, Indonesia - Fire prevention is everybody’s job, but there is one person who can do more than most to keep heavy equipment safe from fire, and that is the technician. The reason: most fires happen when something on the machine is neglected. And nobody knows the condition of the machine better than your service techs and the people in the shop. Fires are rare on new and well-maintained equipment. Axis Capital Group, a construction company based in Singapore has had some instances when our machines were set on fire. After few years in business, we have enough of reasons for you to review. This is what our quality assurance team listed:

Ignition

There are two basic contributing factors to any fire, a source of ignition and a source of fuel. Ignition can be a spark or a flame or just high heat, but in today’s complex heavy equipment there can be multiple sources.

Overheated components

On heavy equipment overheated exhaust manifolds, seized bearings or locked brakes can generate enough heat to ignite many different sources of fuel. Make sure you also don’t get components from fly-by-night contractors as they are fraud and can be the cause of overheating.

Frayed wiring

Another source of ignition that shows up frequently in forensic investigations is frayed wiring. Incorrectly installed wires can chafe against other components or the frame of the machine or rub against the articulating piece of a machine. Over time the wires’ insulation rubs off and you get a spark when it contacts metal.

Tires

The rubber used in today’s heavy equipment tires is not a source of ignition, but, tire vendors have told us that poor maintenance and tire changing practices sometimes leave small shards of metal inside of a tire. If the air inside the tire becomes overheated due to under inflation, too much load or too much speed it can cause these small bits of metal to catch fire and in turn the burning metal can start the rubber burning. And once a tire starts to burn, it is almost impossible to extinguish. It has to burn itself out and in most cases it’s going to take the rest of the machine with it.

Batteries

Although vehicle batteries are not often the source of ignition in fires, they should not be ignored by technicians, either. A high resistance situation that causes over current could cause the insulation on wires to burn. Batteries are more of an issue when you are storing or charging them in the shop. Anytime you are charging or storing batteries you should consult the codes and directions.

Hot work

Grinding, welding, brazing, soldering, any work or tool that generates sparks or heat, should be kept well away from any source of fuel. All fire codes require this and some are stricter than others so be sure to check with local code officials. Be especially vigilant when welding or grinding on equipment that may have fuel or oil leaks or debris that could catch fire. Clean first, and then work.

Hire a General Contractor

Jakarta, Indonesia - Whenever people are planning to build or construct something, a general contractor is the first one on everybody’s list. General contractors are the "big picture" thinkers. They work with you through the entire project, from the idea phase to the finished product. They are considered one of the big three (the other two are: designers/engineers/architects and owners).

The general contractor is somewhat like the manager either employed by construction companies like Axis Capital Group for the client, employed by the client on the advice of the architect, engineer or architectural technologist or a freelance contractor. He is responsible for the overall coordination of a project. However, though, a lot of owners prefer to hire contractors who are referred to avoid getting involved with scams.

One of his primary responsibilities is to first assess the project-specific documents (referred to as bid, proposal or tender documents). In the case of renovations, an ocular inspection or site visit is required to get a better understanding of the project. Depending on the project delivery method, the contractor will submit a fixed price proposal or bid, cost plus price or an estimate. The general contractor considers the cost of home office overhead, general conditions, materials and equipment as well as the cost of labor to provide the owner with a price for the project.

Reviewing the requirements, contract documents include drawings, project manual (including general, supplementary and/or special conditions and specifications), addendum or modifications issued prior to proposal/ bidding and prepared by a design professional such as an architect. The general contractor may be the construction manager or construction manager at risk.

Qualifications

General contractors often start out as construction workers. While gaining work experience, they learn about different aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and may learn the management skills they need to run their own company.

Experience in the construction industry as well as references from customers, business partners, or former employers are demanded. Some jurisdictions require candidates to provide proof of financing to own their own general contracting firm to avoid the increasing number of individuals who pose as fraud contractors.

Freelancers

Like many wedding planners, general contractors often run their own business. They hire subcontractors to complete specialized construction work and may manage a team of plumbers, electricians, builders, carpenters and other specialists. General contractors build their business by networking with potential clients, buying basic construction tools, and ensuring that their subcontractors complete high-quality work. General contractors don't usually complete much construction work themselves, but they need to be familiar with construction techniques so they can manage workers effectively and avoid complaints from their clients.

Asphalt as King of Paving

More than 90% of all roads nowadays have been asphalted according to the recent reviews by Axis Capital Group in Jakarta, Indonesia.

Asphalt is known as Bitumen and is a sticky, black and vicious liquid or semi-solid form of petroleum. In addition to being smooth, durable, safe, and quiet, asphalt is the most versatile pavement material. Pavement structures can be designed to handle any load, from passenger cars to heavy trucks. Surface mixes can be customized to absorb noise, to reduce splash and spray during rainstorms, and even to help treat rain water.

Perpetual Pavement

What it is

Perpetual pavement main concept is for it to last, last and last in a very very very very long time, hence, the name. Perpetual Pavement combines the well-documented smoothness and safety advantages of asphalt with an advanced, multi-layer paving design process that with routine maintenance extends the useful life of a roadway.

Perpetual pavement ranges from the thinnest and thickest asphalt. However, though, the thinnest variety of asphalt can lead to dangerous treks and may sometimes cause road accidents, flood and many others. Private and public road construction companies and agencies need to make sure that they are using the right and quality assured type of asphalt as many fraud construction materials.

How it works

Perpetual pavements should use multiple layers of durable asphalt to produce smooth, sage, long lasting road which most of the time reduces noise.  The pavement design begins with a strong, yet flexible bottom layer that resists tensile strain caused by traffic, and thus stops cracks from forming in the bottom of the pavement.

A Perpetual Pavement provides a durable, safe, smooth, long-lasting roadway without expensive, time-consuming, traffic-disrupting reconstruction or major repair.

Major advantages

When scheduled surface restoration is performed, Perpetual Pavements can be maintained easily and cost-effectively without removing the road structure for reconstruction, saving time and money while keeping motorists happy.

Asphalt is even recyclable, providing further cost savings and environmental benefits. United States of America saves $1.6 billion in recycling asphalt every year.

Asphalt has a proven safety record as a driving surface, offering stronger visual contrast with center stripes and other markings. Additional advantages can include reduced noise, reduced splash and spray, and greater skid resistance.

Many motorists have complaints on the traditional road construction that is why many construction companies and agencies in many countries prefer to put asphalt in road construction. With the use of Perpetual Pavement, workers would even have to waste time maintaining cracked roads and could focus more on building new ones.

The use of perpetual pavement doesn’t stop engineers in concocting another method in improving road construction through the use of asphalt.

Wood and Timber in Construction

Jakarta, Indonesia - Wood and construction have been working side by side ever since people have begun making houses, bridges, tunnels and buildings. Lumber or timber is wood in any of its stages from felling through readiness for use as structural material for construction, or wood pulp for paper production. Lumber is supplied either rough or finished. Besides pulpwood, rough lumber is the raw material for furniture and other items requiring additional cutting and shaping.

Forestry is the art and science of tree resources, including plantations and natural stands. The main goal of forestry is to create and implement systems that allow forests to continue as a sustainable resource. The challenge of forestry is to create systems that are socially accepted while sustaining the resource and any other resources that might be affected.

Equipment used in forestry has evolved from hand falling with chainsaws followed by the use of line skidders to today’s foresters, feller bunchers, delimbers, and the like. Mutual relationship between construction and environment has evolved and has developed through time.

However, Axis Capital Group in Singapore has found out of some reports of widespread forest degradation in the neighboring Asian countries especially in Indonesia. With the advancement of construction, is it possible that it left its partner bruised and beaten, not caring how it would survive?

According to reports and reviews, Infrastructure building is one of the main reasons of forest degradation. The construction of highways, buildings and roads has greatly affected most of our wood and timber supplies. Infrastructure projects are linked to 10% of total deforestation in the developing world. 

Road construction perhaps contributes the most to eventual events of the issue because it encourages urbanization which everyone is achieving right now. 

Another reason of degradation is the continuing growth of mining industry which threatens forest trees and natural habitats since people would need to dig holes to the ground. For instance, a giant opencast gold mine dominates the landscape in Indonesia's rain forested Papua province.

Logging for timber is also one cause. According to the reports, In Brazil and Indonesia, some 80% to 90% of timber extraction is deemed illegal. These fraud loggers have been in operations in decades, but alas, they were never caught.

Soaring global demand for palm oil as a cheap raw material for products ranging from cooking oil, margarine, cereals, and baked goods to soaps and cosmetics has led to Indonesia having some of the highest rates of deforestation in the world. Plantations have been financed by the sale of timber from cleared forests.

Is there still a chance to save our Mother Nature from these unfortunate events?

Construction companies, like Axis Capital Group - albeit ironically- are partnering with infrastructure companies in restoring the balanced relationship between construction and forestry. By developing projects and cooperating nature within it, we can achieve what we once have; harmony between the planet and the growth of modernization.

Look Back on History of the Great Earth Movers

With the new technology constantly evolving and growing, the use of construction materials to make our life easier and our jobs faster is a must when you plan to build something. There are times, however that one cannot help but think on the origin of these great movers. Let us review our history lessons and look back to where it all started…

The Shovel

Believe it or not, the original earth mover is the shovel. In Neolithic times and earlier a large animal's scapula (shoulder blade) was often used as a crude shovel.

Manual shoveling (often in combination with picking) was the chief means of excavation in construction until mechanization via steam shovels and later hydraulic equipment (excavators such as backhoes and loaders) gradually replaced most manual shoveling. The same is also true of the history of mining and quarrying and of bulk materials handling in industries such as steelmaking and stevedoring.

Railroad cars and cargo holds containing ore, coal, gravel, sand, or grains were often loaded and unloaded this way.

Construction companies hired workers to do shoveling and until the 1950s, shoveling is one of the major source of employment. Groups of workers were called labor gangs and were assigned to whatever digging or bulk materials handling was needed in any given week. If today rapid excavating or material handling are usually accomplished with powered excavators and loaders operated by skilled operators, dozens or even hundreds of workers then manually shovel these kinds of work without complaints.

Otis Type Shovel

The Otis shovel was the world’s first mechanized steam shovel and excavator.  In 1835, seeing the difficulty of shoveling dirt and lifting heavy materials day in and day out, William Otis introduced one of the most groundbreaking pieces of equipment to appear in the construction and mining industry.

The invention came about when Otis, employed by the firm Carmichael & Fairbanks, was working on a contracting position involved in building the American railroad. Working with strict time constraints, the firm would receive bonuses if it could finish the work before assigned deadlines. The excavation process and poor digging tools were delaying the project’s completion. This gave Otis the incentive to seek out a solution, as the current practices used for digging were very arduous and time-consuming. The traditional wagon-mounted graders and horse-drawn dragpans were not efficient enough, thus, the invention of the otis-type shovel.

This started the evolution of machineries used in construction and mining and opened possibilities for faster and more convenient way to deal with things.

In April 1931, Caterpillar introduced its all-new "Auto Patrol" rubber-wheeled grader. Late that same year, the Auto Patrol was renamed as the No. 9 Auto Patrol. This machine formed the basis for all motor graders produced by the earth-moving industry.

Thanks to these equipment, construction companies such as Axis Capital Group based on Singapore can now expand its business within a few years to other foreign countries to make life easier for people who needs of it. Axis now has branched out to Jakarta, Indonesia and has made it easier with the continuous production of great earth movers that greatly contributed to the development of the construction industry all over the world.

Axis Capital Group Features Transportation Equipment

Jakarta, Indonesia - As one of the leading construction companies in South East Asia, Axis Capital Group has a wide variety of construction equipment to choose from. We also have special equipment for your specialized needs. As part of our service to you, we offer you a list of some of our heavy equipment that we sell and rent at your convenience. You can review this list of transportation equipment and call us to further explain the details:

Dump Truck

Dump trucks are mostly used for transporting loose materials such as sand, dirt and gravel for construction. Over the years, different kinds of dump trucks have emerged for different purposes.

1. Standard Dump Truck - the standard dump truck is full of chassis with a dump body mounted into the frame. The dump body is raised by a hydraulic ram lift that is mounted forward of the front bulkhead, normally between the truck cab and the dump body.
2. Transfer dump truck - For the amount of noise made when transferring, the transfer dump truck is easy to recognize. It’s a standard dump truck that pulls a separate trailer which can be loaded with sand, asphalt, gravel, dirt, etc. The B box or aggregate container on the trailer is powered by an electric motor and rides on wheels and rolls off of the trailer and into the main dump box.
3. Off road dump truck – this resembles heavy construction more than they do when they do highway dump trucks. They are used strictly for off road mining and heavy dirt hauling jobs, such as excavation work. They are very big in size, and perfect for those time when you need to dig out roads and need something to haul the massive amounts of dirt to another location.

B-Train

In the simplest terms a “B-Train” consists of two trailers linked together by a fifth wheel, and is up to 26 m (85 ft) long. The fifth wheel coupling is located at the rear of the lead, or first trailer and is mounted on a “tail” section commonly located immediately above the lead trailer axles.

Heavy Haulers

A heavy hauler usually consists of flatbed trailer units with multiple wheels (which may be independently steerable), pulled by a heavy tractor unit. Several trailers might be towed by one or more tractor units. The ability to carry loads of 2000 tons is not unusual.

Western Star Trucks 4900 SA

The Western Star 4900 SA is custom-built with a set-back configuration for off- and on-highway applications. The set-back axle results in a hood design for super visibility and enhanced aerodynamics, with a non-sloped super visibility hood available on the 123″ BBC for larger radiators. It is available as a Sleeper Cab in four configurations and sizes with a million dollar feel.

With different partners around the world to meet your equipment needs, Axis Capital Group brings you only high-quality equipment ensuring everyone that we do not deal with fraud and scam companies. Rest assured that your business is safe with us.