Construction & mining equipment sales fall 27% in 2009

The 2009 decline follows a decline of 6.5 per cent for the market in 2008.
“Market sales in all product groups fell during the year due to the effects of the global financial crises on the construction and mining sectors,” said John Reid, CEO of CMEIG.
“However, prospects are now looking decidedly better.
“For example, sales in December 2009 were up by 13 per cent on the corresponding month in 2008, giving the promise of some improvement in the market in 2010.
“Market conditions certainly improved during the second half of the year, due to increased confidence, the improving economic climate and the impact of the federal government’s investment allowance scheme.”
According to Reid, the major factors influencing the market in 2010 will be:
• Delivery of machines ordered during 2009 under the investment allowance scheme;
• A general improvement in economic conditions;
• Increased spending by Federal and State governments on infrastructure projects;
• Continuing high growth levels in China and India, which will have a major impact on demand in the mining industry.
“In overall terms we expect the market to rise by 5 to 6 per cent during 2010 compared with 2009, as economic conditions improve and demand increases in both the construction and mining markets,” said Reid.
Key points taken from the CMEIG/DBI data include:
• The largest volume of sales were recorded in Queensland which had 30.4 per cent of national sales; NSW accounted for 23.4 per cent; followed by Victoria and WA which had 18.4 per cent and 15.9 per cent respectively.
• Estimated value of the total market was $3.2 billion.
• Hydraulic excavator sales fell by 24 per cent, although this market continued to be the largest in terms of unit sales and dollar value – with sales volumes accounting for 39 per cent of the total equipment market.
• Wheel loader sales declined by 36 per cent, reflecting a significant decline in spending on infrastructure projects.
• Dozer sales fell by 30 per cent following a small increase in 2008, due to lack of investment by mining companies and contractors.
• Motor grader sales declined by 37 per cent, reflecting the fall in expenditure by local government.
• Rigid dump truck sales fell by 32 per cent due to lack of investment by the mining industry, while articulated dump truck sales went down by 45 per cent.
• In the smaller machine markets, skidsteer loader sales were 19 per cent lower, while backhoe loader sales dropped by 22 per cent.
• Road Roller sales declined 43 per cent.
“Demand for both construction and mining machinery should increase in 2010 as economic conditions improve and government spending increases for major infrastructure projects,” Reid said.
Copies of the DBI Annual Report are available to selected companies. Visit: www.cmeig.com.au