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.
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/
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