Third quarter
sales of construction and mining equipment continued to decline in the third
quarter of this year according to the Construction and Mining Equipment
Suppliers’ Association (CONMESA).
YoY the overall
market decreased by 9.7% with construction and mining decreasing by 11% and
3.6% respectively
This marks
negative growth for the third quarter in a row with sales of new equipment down
by 6.42% in 2019Q3 when compared to sales in 2018Q3. The figures show that 1357
machines were sold during the period, which is 93 units less than the 1450 sold
last year.
While certain
sectors and equipment types are buoyant, the overall momentum of the market is
negative and almost all role players in the industry are affected to varying
degrees, and in particular mining equipment which showed a 30% decrease quarter
on quarter.
CONMESA
Chairman, Calvin Fennell, says the prolonged downturn is as a result of the
depressed state of the local economy. While Government’s initiatives to
kickstart much needed infrastructure projects nationwide are seen as a positive
step in the right direction, such initiatives will take some time to have an
effect on the market and will need to be backed by more significant projects by
both Government and the private sector in future.
“We are not
expecting any sudden swing in either direction during the next quarter nor the
foreseeable future. Instead, our local equipment suppliers are focusing on
streamlining their organisations, maintaining market share and providing
customers with maintenance and service support to sweat their existing assets
until such time as the market turns.
“Until we see real
large-scale infrastructure projects
being awarded and rising demand for commodities on the global market, we are
expecting more of the same and tough times ahead.
More
information from Jim Rankin, Tel: (011) 453 7249, Email: [email protected]
