Machinery keeps roads sector moving

As the Federal Government supports the construction industry through the challenges of COVID-19 by increasing the instant asset write off threshold, major Queensland and Northern Territory machinery supplier Hastings Deering are creating ‘go-to-work’ equipment packs to ensure the company can service demand for continuing road construction projects across the country.

The construction industry is in a state of adaptation as it moves to adopt new business strategies and implement increased health and safety procedures as a result of COVID-19.

While these changes are essential to ensure the health and safety of construction workers it has been confirmed by the Deputy Prime Minister that vital infrastructure projects will continue to go ahead, provided health precautions are adhered to.

In this challenging time, the future can be daunting across a number of industries. However federal and state governments have injected much-needed stimulus into the economy to ensure critical road construction projects continue as normal.

For example, the Queensland Government announced in March, a stimulus package to invest in helping the economy withstand and recover from the impacts of COVID-19. This package will help ease the pressure on business owners in the road construction industry.

In this time Hastings Deering is keeping some machinery in stock so that delivery times are significantly decreased, and contractors can have them on the ground working as soon as possible.

Ryan Van Den Broek, Sales Manager of Road Construction and Infrastructure at Hastings Deering, said even though it’s a difficult time right now, the one thing that will always be a constant is that roads will always need to be fixed and there will always have infrastructure growing.

“The stimulus will help to increase the amount of roadworks, repairs and maintenance to infrastructure. Having this stimulus is going to help our customers to get the machines they need in order to keep up with the demand that will be coming,” he said.

“Hastings Deering is actually getting an increase in engagement and interest from the road construction sector during this time, especially after governments are showing that road and infrastructure projects will continue.”

The company is ordering in machines to ensure sure they are able to supply the demand seen for road construction projects.

“Everything about Hastings Deering is business as usual. We have got a big line up of things like rollers and small equipment so we can best service the industry,” Mr. Van Den Broek said.

With the Federal Government increasing its Instant Asset Write Off from $30,000 to $150,000, the new Hastings Deering CW12 pneumatic roller and the CB7 tandem vibratory rollers, now fall within this threshold.

Mr. Van Den Broek said that the inventory availability at Hastings Deering will allow for a quick turnaround with machine delivery.

“We have a bunch of machines in stock built to the ‘go to work pack’,” he said.

“This ‘go to work pack’ includes all the pre-delivery, a fire extinguisher, rotating beacon, registration, seat cover and all the bits and pieces customers need, without the being put through the workshop,” he said.

“The machines are prepared, they are ready! All that is needed is quick detail and paid registration and they’ll be out the door.”

The higher threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

This proposal applies until 30 June 2020, for new or second-hand assets purchased and delivered within this timeframe.

Read the full story in the May edition of Roads & Infrastructure magazine upon its release. We know many people are working remotely, for a free home subscription to Roads & Infrastructure magazine click here.

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