Separating Perception from Reality in the Conveyor Industry

A remark often heard in industry circles is that conveyor companies care only about their profits. But where does such a perception come from? The answer lies in a very human tendency – confirmation bias.

Take Udham Singh – Rollcon’s site supervisor in Faridabad. He ignores health warnings about nicotine products. Instead, he points to his grandfather and four sons –  all of whom are still strong, hardworking farmers in Haryana. 

For Udham, this small family example matters more than decades of medical research involving tens of thousands of people. His belief is fixed, strengthened by the evidence he chooses to notice.

That’s confirmation bias in action. Once we believe something, we instinctively filter evidence to protect that belief. 

This makes us more likely to overlook, downplay, or even dismiss evidence that challenges it – no matter how compelling it may be.

The same mindset plays out in the conveyor industry. When a project fails due to substandard supplies and delivery failures, the client feels deceived, and word spreads: “All conveyor companies are dishonest.” Someone might retort, “Oh, so you’re calling from the scam market too!”

But in truth, this bias has been shaped by a specific set of market realities.

Factor 1: The Rise of “Industry Dropouts”

Let’s coin a term here – ‘Industry Dropout.’ An Industry Dropout is someone with only a surface-level understanding and very little real experience in a field, in this case, conveying science and the conveying industry. 

They may have collected a few drawings. From that, they assume they are qualified to act as a genuine supplier. Sounds unlikely? Yet it happens. The market is full of such people – and surprisingly, some even manage to win orders!

Factor 2: The L1 Trap

The conveyor market is L1 or lowest bidder-centric. And 90–95% of players in this market are industry dropouts. So, vying for orders has them playing on the only lever they can pull – quoted cost.

Clients eager for a low-cost option often take the bait. This sets the stage for disappointment. Industry Dropouts can price the product very cheaply because they don’t have the overheads of an engineering and design department, R&D, dedicated project management teams, accounts, or logistics support.

These departments not only form a major part of the cost but are also critically essential for any project to be successfully commissioned.

Since conveyors are usually ordered last, budgets are already stretched thin. The cheapest bid wins.

But underquoting inevitably leads to substandard material, premature breakdowns, and missed production targets. In the end, the client not only feels conned but also loses valuable uptime and risks their own reputation. Hence, the bias strengthens.

Factor 3: Unrealistic Delivery Schedules

To win orders, L1 vendors often promise aggressive timelines without factoring in fabrication realities. Their subcontractors – usually chosen on the same L1 principle – face similar financial and resource constraints.

When delays inevitably occur, neither the supplier nor the subcontractor has the financial strength to keep the project moving without additional client funds. The result: stalled work, missed deadlines, and eroded trust. For the client, it’s not just trust at stake. Production targets are missed, manpower sits idle, and extra costs pile up for firefighting downstream.

Again, the lack of proper project management and engineering oversight from industry dropouts worsen these delays. Without these crucial departments, vendors are unable to anticipate issues, manage risks, or coordinate resources effectively.

Factor 4: Fragile Finances

Most L1 players lack financial stability. Without the backing necessary to tide over lean times, they struggle to absorb delays – which are common in this industry. The client is reluctant to pay more than the bare minimum advance, given the sparse track record. Banks are also unwilling to extend credit. For an L1 vendor, each day is a tightrope walk until the next payment comes in.

When finances fail, so does the project. The impact lands squarely on the client’s side. Half-finished structures, equipment stuck mid-way, and valuable project timelines slip out of control. Production schedules don’t wait, and every day lost erodes both efficiency and credibility.

Industry Dropouts, lacking resources like proper engineering, design, or project management teams, are particularly vulnerable in these situations. There are many moving parts in a project. Any stumble has a domino effect they have neither the capability nor the finances to stop. The cost of that mistake isn’t just the vendor’s headache – it’s the client’s plant that suffers breakdowns, delayed commissioning, and production loss. These losses are often far greater than the 10% Performance Bank Guarantees and the initial cost saving combined. This leaves the client with no way to recover the loss. Even a legal suit would result in delayed resolution, with the tiny vendor often declaring bankruptcy.

Beyond L1 Thinking

The perception that “all conveyor companies are cheats” is less about reality and more about repeated encounters with L1 suppliers who cannot deliver what they promise.

At Rollcon, we have seen this bias firsthand. Even after providing detailed, itemized cost breakdowns, clients sometimes respond with: The other guy is quoting less.

On paper, specifications may look identical. In execution, however, quality, durability, and accountability vary drastically – and that is where the difference lies.

Breaking free from this bias requires looking beyond the lowest quotation. It means evaluating supplier credibility, financial stability, and execution capability. In the world of conveying, the real cost is not in the quotation — it’s in the reliability of delivery. And that makes all the difference — for your plant, your production targets, and your reputation.

Author:

Rajiv Dhawan
Managing Director
Rollcon Technofab India Pvt. Ltd.

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