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THE MARKET IN AFRICA FOR CONSTRUCTION EQUIPMENT & HEAVY MACHINERY

The booming construction sector has led to rising demand for machinery and equipment for African countries…

The burgeoning construction sector in many African countries has harbingered good times for companies manufacturing construction machineries and equipment as well as those selling  used and refurbishing heavy equipment and machinery. The appreciable increase in real estate and construction activities in African countries has resulted in a substantial surge of demand for concrete mixers, bar-bending and cutting machines, excavators and backhoes and earth rammers.

UAE-based Arabian Jerusalem Equipment Trading Company, a prominent dealer of new and used construction machinery has registered a considerable increase in the sale of excavators and backhoes to African countries.

The construction machinery industry in Africa, worth approximately US$9,00 million is undergoing a steady transformation by moving from a low volume, intensive use of equipment structure to high volume, specific use one. In the coming years, the major segments of construction machinery that are expected to grow are excavators, loaders, dozers, dumpers and cranes, say industry analysts.

The rapid growth in the overall economy of many African countries accentuated the need for improving infrastructure. Governments, development authorities and even companies have begun investing in infrastructure development projects in several African countries. Moreover, many African governments have invested heavily in irrigation and mining projects across the continent. All these factors have contributed immensely to the increased use of construction machinery”.
Unreserved auctions managed by internationally acclaimed companies have also benefited from the flurry of activity in the construction, mining and irrigation sectors in many African countries. Many auctioneers of used and refurbished machineries are riding the boom wave with many bagging orders from African countries. Most of them have managed to bag substantial orders from Africa with many registering as high as a 20 per cent increase in sales to African nations. “Many construction majors working on African projects have really opened the markets in Africa for us” says sales manager for World Wide Auctioneers in Dubai. “We are getting steady orders from these companies to supply machinery and equipment for their projects in Africa.

The boom has started a rippling effect touching various other spheres of activity that are not directly related to the construction industry. Manufacturers of ancillary products such as crane ropes, cables, pulleys and buckles too are benefited from the boom.

THE DEMAND FOR USED CONSTRUCTION EQUIPMENT & HEAVY MACHINERY IN THE AFRICAN MARKET

The face of the African construction industry is changing; more projects on the continent are getting bigger and more complex, currently the annual growth in the demand for heavy construction equipment has remained steady at 4.5% since the second half of the 1980s.

However, demand has changed in terms of region, with the fastest annual growth (about 9%) reported in South Africa and the slowest (about 3%) observed in few unstable countries. The increase in the sales of construction machinery is being fuelled by such factors as the need to expand infrastructure, to construct residential, nonresidential buildings, and to exploit natural resources.

The rapid growth in the overall economy of many African countries has accentuated the need for improving infrastructure. Governments, development authorities and even companies have begun investing in infrastructure development projects in several African countries. Moreover, many African governments have invested heavily in irrigation and mining projects across the continent. All these factors have contributed immensely to the increased use of construction machinery

The key determinant of spending for such equipment is the ability and willingness of sovereign nations and private sector firms to commit funds for fixed investment. This in turn is influenced by a host of factors, chiefly per capita income, the condition of existing infrastructure, the rate of urbanization, and various social conditions ranging from traffic congestion to housing shortages.

It’s approximated that the construction machinery industry in African market worth US$900 million is undergoing a steady transformation by moving from a low volume, intensive use of equipment structure to high volume, and specific use one. In the coming years, the major segments of construction machinery that are expected to grow are excavators, loaders, dozers, dumpers and cranes.

It has been witnessed that unreserved auctions managed by internationally acclaimed companies have also benefited from the flurry of activity in the construction, mining and irrigation sectors in many African countries. Many auctioneers of used and refurbished machineries are riding the boom wave with many bagging orders from African countries. Most of them have managed to bag substantial orders from Africa with many registering as high as a 20 per cent increase in sales to African nations.
Typically African purchasers emphasize lifetime costs, access to credit, high product quality, and maintenance support.

Some counties like Sudan in Africa have smaller buyers who will actually look at price, as they have limited access to credit; parts availability also is crucial, as they buy used equipment.
Rising demand in Africa

In developing nations, there is a clearcut imperative to put in place utility plants and pipelines and a is a dire need to construct low-cost housing to accommodate a fast-growing urban population.

The boom has started a rippling effect touching various other spheres of activity that are not directly related to the construction industry. Manufacturers of ancillary products such as crane ropes, cables, pulleys and buckles too are benefited from the boom.

Source: http://constructionreviewonline.com/2015/01/demand-used-construction-equipment-heavy-machinery-african-market/

Komatsu profit up 26% in first 9 months due to increased demand for construction equipment

Despite impact from a low demand for mining equipment, Komatsu saw increases in both sales and profits for the first nine months of its fiscal year. The company reported net sales of $13.6 billion (1.38 trillion yen), up 3 percent over the same period in 2012. Operating income rose 10 percent to $1.6 billion (165.6 billion yen). The company’s fiscal year ends on March 31, 2014. Profit for the company saw a huge increase, up 26.6 percent to $1.1 billion (115.3 billion yen). The company attributes the gains to increased demand for construction equipment in Japan and China as well as other regions. The Construction, Mining and Utility Equipment division saw net sales of $12.2 billion (1.25 trillion yen), an increase of 3.6 percent. The division scored a profit increase of 10.6 percent to $1.6 billion (164.1 billion yen). Despite the increases, Komatsu has not made any changes to the projections for the full fiscal year it made in October. That outlook cut the forecast for profits by 26 percent year-over-year to $1.39 billion (136 billion yen) and decreased the forecast for net sales 9.3 percent to $19 billion (1.86 trillion yen).

 

 

– See more at: http://www.equipmentworld.com/komatsu-profit-up-26-in-first-9-months-due-to-increased-demand-for-construction-equipment

 

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Re-engineer. Re-construct. Re-invent.

This has been the maxim upon which Infra Engineers India has evolved since its consulting Era to the establishment as a Global, construction equipment solutions provider in 2010. The journey since has been one of accomplishments.

• First company in Used Earthmoving Equipment Industry to be accorded certification as an Export House by the Ministry of Commerce & Industry, Government of India
• Commissioned Facility as an Export Oriented Unit (EOU) in the Free Trade Zone
• Establishment of nodal centers in South East Asia, Middle East, Africa & Australia
• Fully operational overseas base in Africa
• Equity stakes with partner organizations in nodal hubs for back-end integration of supplies and sourcing
• Increased service and product offerings to cover key links in the used construction equipment value chain
• Customer Value Proposition – Dedicated service teams in key geographies to facilitate MRO (Maintenance, Repair and Overhaul) services

Infra Engineers India’s business strategy has helped transform the company from a single stream business to a multi-dimensional, closed-loop enterprise that is global in its reach. We have transformed, thanks to a visionary approach that is long term and with a sustainable business model. Our vision for the business keeps us in readiness for the opportunities that arise and take our expertise to new and emerging geographies.

Who we are?

Infra Engineers India is the brainchild of an innovative team and provides creative solutions in the procurement and management of construction equipment. The company has a presence in every aspect of the used equipment & components for the construction industry. With the turn in the economic climate, business spotlight has shifted to developing economies of the globe. Infra Engineers India has a nimble structure that is well adapted to capitalize on the opportunities in tandem with market dynamics. We are there where the business beckons and we are in the right geographies where our customers seek us.

• Recon & Refurbish Used Equipment working out of Free trade zone (India)
• Move goods to project sites through nodal distribution centers overseas
• Invest in overseas equipment parts and accessories manufacturers as a back-end integration for MRO services
• Mobilize skilled service team to provide post-sales maintenance at project sites
• Undertake project management services pertaining to excavation and mining (Middle East, Africa, Myanmar, Thailand)
• Progressively expand service and product portfolio to match customer requirements
• Establish bases world-wide to tap arising opportunities (South East Asia, Middle East, Africa, Australia)

We offer our clients the entire spectrum of products and services across the Global. Our strategy is to work on a ‘Global’ business model wherein we supply and service our customers close to their locale. We do this by entering into local partnerships in each location. We leverage our nodal centers established across the globe to ensure short delivery cycles.

We transfer cost efficiencies arising from our presence in low cost labour markets to our customers worldwide. We have continued to expand our business into related verticals which makes us a one-stop solution front for construction equipment, particularly earthmoving equipment. OEMs, suppliers, buyers and other end-users benefit from our innovative solutions. From sourcing, refurbishing used goods, leasing, hiring, contracting, re-selling, MRO (Maintenance, Repair and Overhaul) services – to supply and service of equipment components, allied project management services, technical manpower training and deployment – we serve our customers’ needs in every aspect. Thus our closed-loop business presence coupled with efficiencies that are both global and local makes us the partner of choice in the construction equipment industry.

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