Construction, mining equipment sales fell 27% in 2009

The 2009 decline follows a decline of 6.5% for the market in 2008.
“Sales in all product groups fell during the year, due to the effects of the global financial crisis,” said CEO of CMEIG John Reid. “However, prospects are now looking decidedly better. For example, sales in December 2009 were up by 13% on the corresponding month in 2008 – giving the promise of some improvement in 2010. 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; and
•    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% during 2010 compared with 2009, as economic conditions improve and demand increases in both construction and mining markets,” Reid said.
Key points from 2009 include:
•    The largest volume of sales were recorded in Queensland which had 30.4% of national sales: NSW accounted for 23.4%, followed by Victoria and WA which had 18.4% and 15.9% respectively;
•    Estimated value of the total market was $3.2bn;
•    Excavator sales fell by 24%, although this market continued to be the largest in terms of unit sales and dollar value, with sales volumes accounting for 39% of the total equipment market;
•    Wheel loader sales declined by 36%, reflecting a significant decline in spending on infrastructure projects;
•    Dozer sales fell by 30% following a small increase in 2008, due to lack of investment by mining companies and contractors;
•    Grader sales declined by 37%, reflecting capital expenditure cuts by local governments;
•    Rigid dump truck sales fell by 32% due to lack of investment by the mining industry, while articulated dump truck sales went down by 45%;
•    In the smaller machines, skidsteers sales were 19% lower, while backhoe sales dropped by 22%; and
•    Road roller sales declined 43%.
“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.
More information: CMEIG: John Reid, 02 9712 1497, 0412 247 632, johnreid@cmeig.com.au, www.cmeig.com.au; Datamotive Business Intelligence: Chris Cordia, 03 9093 4612, 0401 144 981, chris.cordia@datamotive.com.au, www.datamotive.com.au.