Sales of construction and mining equipment continued to decline in the third quarter of this year according to the Construction and Mining Equipment Suppliers’ Association (CONMESA).
Year-on-year, the over all market decreased by 9.7% with construction and mining decreasing by 11% and 3.6% respectively
This marks negative growth for the third quarter in a row with sales of new equipment down by 6.42% in 2019Q3 when compared to sales in 2018Q3.
The figures show that 1357 machines were sold during the period, which is 93 units less than the 1450 sold last year. While certain sectors and equipment types are buoyant, the overall momentum of the market is negative and almost all role players in the industry are affected to varying degrees, and in particular mining equipment which showed a 30% decrease quarter on quarter.
CONMESA Chairman, Calvin Fennell, says the prolonged downturn is as a result of the depressed state of the local economy.
While Government’s initiatives to kickstart much needed infrastructure projects nationwide are seen as a positive step in the right direction, such initiatives will take some time to have an effect on the market and will need to be backed by more significant projects by both Government and the private sector in future.
‘We are not expecting any sudden swing in either direction during the next quarter nor the foreseeable future. Instead, our local equipment suppliers are focusing on streamlining their organisations, maintaining market share and providing customers with maintenance and service support to sweat their existing assets until such time as the market turns,” said Calvin.
“Until we see real large-scale infrastructure projects being awarded and rising demand for commodities on the global market, we are expecting more of the same and tough times ahead.”