After becoming an excavator boss, more people lament: worrying about finding work, worrying about getting paid when there is work; worrying about nice drivers after getting paid.
Excavator industry has a low threshold and decent economic returns, leading many operators or people outside the industry buy excavators to make money. However, upon entering this industry, they realize it’s not as simple as imagined. “Hourly fees that can’t go up, costs that can’t go down.”
The difficulties come from:
- Finding projects is difficult. The real estate industry in China has been hot for years, but now in a downturn, it’s hard for many without a certain industry background to find consistent projects.
- Finding good drivers is tough. With a decline in projects, good drivers are the best way to retain clients.
- Driver wages must be paid on time. While project payments are challenging, driver wages must still be paid promptly.
- Rising diesel prices, equipment maintenance, and repairs are significant expenses.
- Settling project payments is difficult. Hourly fees are continuously decreasing, and even some excavator bosses still have outstanding payments from years ago. Therefore, many people prefer to mini excavators, despite lower hourly rates, due to more timely settlements .
- Maintaining excavator partnership relationships. Many large excavators are purchased in partnerships, leading to disagreements that can escalate into serious rifts.
- Dealing with various emergencies daily requires the boss’s personal attention.
Although each aspect is challenging, many newcomers are still joining the industry. Over the past thirty years, alongside China’s real estate and infrastructure development, Chinese excavator bosses have made a good amount of money, with many achieving financial freedom.
In the future, as real estate declines, the industry may experience some fluctuations, but Chinese resilience will shine even brighter in this era’s tide.