First half heavy equipment sales steady

The results follow declines of 6.5% in 2008 and 27% in 2009.
CEO of CMEIG John Reid said, “Market results were mixed with increases in excavator and wheel loader sales, but most other product group sales declined. While sales started off the year in a positive manner, they have declined as the year has progressed in both construction and mining markets.
“The lack of new infrastructure projects and the uncertainty generated by the Federal Government’s decisions on the Minerals Resource Rent Tax (MRRT), have resulted in lower sales in a wide variety of product groups,” he said.
Reid said that difficulties in obtaining finance for machine purchases, particularly for smaller contractors, was continuing to have a negative effect on the market and was affecting sales of smaller machines such as skidsteers and backhoes.
Highlights of activities in the six months to June included:
•    The largest volume of sales was recorded in NSW with 26.2% of national sales; Queensland recorded 24% followed by Victoria with 19.7% and WA with 16.2% of national sales;
•    Excavator sales rose by 14.1%, well above the total market result; the major increase was in mini excavator sales with a 20.7% increase over last year;
•    Wheel loader sales increased by 8.2%, a substantial turnaround from the 36% decline in this market in 2009;
•    Dozer sales declined by 5.4%, reflecting the uncertainty in the mining market;
•    Grader sales fell by 25%, an indication that local government in rural areas is still feeling the effects of the GFC;
•    Rigid dump trucks declined 7.3%, an accurate reflection of the downturn in mining. In comparison, articulated dump truck sales rose by 18.9%, albeit on relatively low volume;
•    In the smaller machine markets, skidsteer sales were 8.3% lower, while backhoe sales declined by 17.3%; and
•    Roller sales fell by 31.7%.
“Without substantial government expenditure on new road and infrastructure projects, the market will probably continue at present levels at least until the end of 2010,” 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, 03 9093 4612, 0401 144 981, chris.cordia@datamotive.com.au, www.datamotive.com.au.