Mining drives heavy equipment sales growth in 2011
Australia’s construction and mining equipment market continued its rise from the doldrums of the GFC, driven by mining sector demand for heavy equipment.
Komatsu 960E-1 haul truck.
Industry group Construction and Mining Equipment Industry Group (CMEIG) and auctioneer Euro Auctions say demand for both new and used equipment has increased and that sales growth is expected to continue into 2012.
According to CMEIG chief executive, John Reid, the strength in the mining market made up for a relatively flat result in construction equipment sales.
New construction and mining equipment sales in Australia increased by 22.9% in 2011, generating a total market value of around $4bn. This growth follows the 7.3% rise in sales across 2010, according to CMEIG figures.
Sector wide growth is expected to continue in 2012 in the wake of 2011 extreme weather events on the east coast, Reid said.
“In overall terms we expect the market to rise by 8-10% in 2012 compared with 2011 as new infrastructure projects are started and the clean-up after floods continues.”
According to auctioneers, Euro Auctions, demand for used mining equipment followed a similar trajectory to new gear in 2011. The company said low hours equipment under two years old sold above their sale price when new in some instances.
“The global interest in 12 to 24 month old plant is at an all-time high. With 12 to 24 month old stocks depleting, buyers are now interested in stock from 24 to 48 months old.”
Australia is always looking for late year, low hours heavy earth moving and mining equipment, Euro Auctions said, with Volvo, Komatsu, CAT and JCB being the preferred makes. Euro Auctions expects Australia's second hand market to increase dramatically in 2012.
Contact: www.cmeig.com.au & www.euroauctions.com
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