Earthmoving and mining equipment sales edged upwards this year, giving suppliers reason to be cautiously optimistic going in to 2018.
Provided the country experiences ongoing political and currency stability the outlook remains positive for the year ahead. Combined with a recovery in certain commodities such as coal, this may be just the medicine the industry needs to recover beyond the highs of 2013 levels, says Construction and Mining Equipment Suppliers’ Association (CONMESA) Chairman, Lawrence Peters.
“A number of factors, however, continue to weigh on sales with low commodity prices, as well as political uncertainty and a volatile currency hampering our economy in terms of production and investment. As a result, large-scale construction, mining, government and municipal infrastructure projects are being stalled and this still weighs heavily on equipment sales.
“While sales in general are suppressed, there are pockets of high-activity in certain regions due to local infrastructure programmes attracting investment, as well as certain mining and agricultural sectors which have become resurgent.”
He explains that figures for the first three quarters of 2017 averaged over 1450 units per quarter, which is a welcome improvement of the 1180 units per quarter averaged in the previous year.
“We are hopeful that these are the leading indicators for an industry wide upturn and based on this upward trend are looking forward to a better year in 2018,” Lawrence concludes.