Financing Lifecycle Asset Management (LCAM) in the construction industry is becoming increasingly important as companies focus on sustainability and reducing their environmental impact. DLL is committed to helping customers achieve their sustainability goals by financing electric powered assets and promoting the use of refurbished and recertified assets, making DLL a leading finance company in this field.
Lifecycle asset management refers to the systematic approach of managing assets throughout their entire life cycle, from procurement to disposal, to maximize their value and minimize costs. However, more and more firms are looking to LCAM to assist in reducing the environmental impact of their construction projects while freeing up cash reserves by utilizing financing options rather than traditional financing, converting capital expenditure into operational expenditure.
Understanding the benefits of lifecycle asset management
LCAM in the construction industry can offer various benefits, including:
• Cost savings: LCAM helps companies plan and budget for the entire life of an asset, which can reduce the costs associated with unexpected repairs or replacements.
• Improved equipment performance: LCAM helps ensure equipment is properly maintained, which can increase its lifespan, improve its efficiency, and reduce downtime.
• Better risk management: By tracking and analyzing equipment performance data, LCAM can help identify and mitigate risks, such as equipment failure or obsolescence.
• Increased sustainability: LCAM can help companies choose and manage equipment in a more sustainable manner, reducing waste and emissions, and conserving resources.
• Better project management: LCAM can help companies plan and execute projects more effectively by providing insight into equipment availability, performance, and maintenance requirements.
• Improved safety: LCAM can help companies identify and address potential safety hazards associated with equipment, reducing the risk of accidents and injuries.
Overall, LCAM can help construction companies make more informed decisions about equipment ownership and use, which can lead to improved equipment performance, lower costs, and a more sustainable operation.
Financing for a sustainable future
Financing is a critical component of LCAM in the construction industry, and selecting the right financing option can impact a company's sustainability efforts. From leasing to inventory financing to rental and pay-per-use, companies can choose a finance option that aligns with their sustainability goals and values while reducing their operational costs and environmental impact.
Companies seeking to meet sustainability key performance indicators (KPIs) should consider several factors when choosing a financing option. These include the sustainability of the equipment and its impact on the environment, the company's sustainability goals and values, the length of time the equipment is needed, budget and cash flow considerations, and the equipment's ability to reduce emissions, conserve resources, and minimize environmental impact.
The growth in demand for used equipment
With equipment shortages plaguing the industry, the used construction equipment market has been very active. There has been high demand for equipment with low hours of usage as customers who previously may not have considered buying used equipment are now doing so.
DLL’s goal is to finance a portion of its new business volume in the used equipment space, as we believe in the circular evolution of assets. DLL has the ability to manage the full life cycle of an asset, from financing to monitoring usage, and informing the customer when it is time to replace or return. This helps to maximize the value of the asset in the secondary market.
With the scale of its operations, DLL sees equipment cycling through at a steady rate, and can provide its dealer network with a list of customers who have equipment coming towards the end of their contract or lease. This allows dealers to be proactive and offer customers the option to refinance their existing equipment, given the high demand for used equipment and the current shortage of new equipment, or take up a new flexible and tailored financing option for new equipment.
As a global organization with operations in over 25 countries, DLL is capable of moving equipment that is not being utilized in one part of the world to another where there is demand. Our large network of hubs and dealers, as well as an expanding end-user customer network, allow DLL to redeploy the used assets that come back to us.
Find out how DLL can help meet your financing needs
Overall, DLL is a leading finance company in the field of lifecycle asset management, offering its vendors, dealers, and the equipment end-user a full range of financing options, helping to bridge the gap between supply and demand in the construction industry. Connect with our construction asset finance experts to see how DLL can help enable ambitious projects that bring efficiency and potential savings to your operation.
