Mini excavators starred in 2004

Australian equipment distributors notched up record sales in excavators, graders and skidsteers in 2004 according to the Construction & Mining Equipment Industry Group Inc (CMEIG).

Excavators

All sectors grew 24% for the year while growth in the mini excavator market (<8t) was 38% reflecting strong growth in residential construction.

As the residential construction market eases, so will demand and it is expected that this sector will decline by 10 to 15% during 2005. The overall excavator market should also decline by around 10%.

Wheel loaders

Growth in wheel loaders was less spectacular but still solid at 11%. This market has now bettered its previous high in February 1996 but appears to have peaked. The forecast for 2005 is for a slight decline by around 6%.

Dozers

The dozer market was stronger than expected during 2004 with overall growth of 38% coming predominantly from the mining sector. CMEIG expects the market to decline in 2005 by around 15%.

Rigid dump trucks

Exceptionally strong demand from the mining sector for additional truck capacity, resulted in growth of 90%. The market continues to experience very high demand, and subsequent long lead times. Even with this high demand the market could decrease slightly during 2005.

Articulated dump trucks

This market suffered a major decline in the middle of 2004 but recovered towards the end of the year to record 7% growth over the year. Demand should remain fairly strong for 2005 and the market is expected to remain at around current levels.

Graders

The CMEIG saw the easing of the drought in rural areas as the main factor for strong demand in this sector. Overall growth for the year was 35%. The market appears to have reached a peak at the end of 2004 and is expected to decline during 2005 by around 16%.

Backhoe loaders

This market was up and down during 2004 and finished the year with a slight increase of 2%. It is expected to decline during 2005 by around 11% with the easing of residential construction.

Skidsteers

The skidsteer loader market also reached a record high at the end of 2004 due to very strong demand from the residential construction market. Again, this sector is expected to decline in 2005 by around 13%.

While most markets are expected to decline slightly in 2005, continuing demand in the residential market and large numbers of infrastructure projects will ensure relatively strong demand in 2005. With on-going high demand for resources, particularly coal and iron ore, demand for mining equipment is also expected to remain relatively high throughout 2005.

More information: www.cmeig.com.au.