Equipment sales up from floods, boom

According to figures released by the Construction and Mining Equipment Industry Group (CMEIG) and Datamotive Business Intelligence (DBI), construction and mining equipment sales increased by 22.9 per cent in 2011 ? an increase of 7.3 per cent on 2010. It is expected that the market will show further solid gains in 2012.

?Market results were relatively strong across nearly all equipment categories,? said John Reid, CEO of CMEIG, who added that the strength in the mining market made up for a relatively flat result in construction equipment sales.

?However, the aftermath of last year?s extreme weather events in Queensland, New South Wales and Victoria created opportunities for increased equipment sales,? John Reid said. ?This was most evident in Queensland which required a massive rebuilding operation following the floods and Cyclone Yasi.

?In overall terms we expect the market to rise by eight to 10 per cent in 2012, compared with 2011, as new infrastructure projects are started and the clean-up after floods continues.?

The largest volume of sales was recorded in Queensland, which accounted for 30 per cent of the national market, followed by NSW (22.8 per cent), WA (19.3 per cent) and Victoria (18.3 per cent).

The estimated value of the total market was $4 billion, a dramatic increase on 2010 results, due to a large increase in high value mining equipment sales.

Nearly every product in the earthmoving and construction market experienced a substantial rise in sales. Hydraulic excavator volumes rose by 14.4 per cent, with sales of this product group accounting for almost 41 per cent of the total equipment market. Wheel loader sales increased by 35.7 per cent, reflecting improvement in construction work and increased mining activity while dozer sales rose by 37 per cent, also reflecting demand in the mining industry. Motor grader sales rose by a further 66.3 per cent, a result of greatly increased investment by local government.

Rigid dump truck sales also enjoyed a 46.5 per cent rise in sales, thanks to increased demand from the mining industry, while articulated dump truck sales rose by 52 per cent due to new infrastructure projects and flood recovery work.

?Demand for both construction and mining machinery should increase further in 2012 as the economy continues to improve and infrastructure and mining projects are further developed,? John Reid concluded.


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