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

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/

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3,861 Companies Receive Registration Certificates from National Council for Construction (NCC) in Zambia

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3 861 certificates have been issued to construction companies in the 2014-2015 registration period by theNational Council for Construction (NCC) in Zambia.

According to Patrick Kampengele, the National Council for Construction (NCC) in Zambia Board Chairperson, out of the registered 3,861 companies, 95 percent of the companies were local while 5 percent were foreign.

Kampengele also noted that the number of registered companies was expected to rise to over 4000 by the end of the year.

There was also training for 378 students by NCC on skills such as operation of earth moving equipment, paving technologies and management of consultancies. Kampengele further noted that some of the courses being taught had been oversubscribed something which showed the need to accommodate more students to increase skill in the construction industry.

The Minister for Transport, Works and Supply, Yamfwa Mukanga noted that the construction sector had to address the gaps on inadequate legal framework to adjust the industry successfully.

Minister Mukanga noted that the industry was facing rise in project costs which was as a result of rice in raw material prices and strength of the Kwach as compared to other currencies.

Other challenges faced by the construction industry included lack of access to quality materials, scarce and incomplete designs, delay in site instructions being given by consultants and many more factors.

Mukanga further noted that NCC was in the progression to review the NCC Act no:13 so that the needs of modern society can be met in a global form.

Source:http://constructionreviewonline.com/2015/07/national-council-for-construction-ncc-in-zambia/

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NEW 1050K DOZER’S DESIGN AIMED AT PRODUCTION

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When John Deere Construction & Forestry began engineering a new production-class crawler dozer to replace its then-flagship 1050J model, the new machine’s design centered on four key performance criteria: horsepower, operating weight, track-on-ground, and a drive system that could most effectively translate these factors into optimum pushing power. Unlike the 1050J, the new model would be completely engineered by John Deere and built in the company’s Dubuque, Iowa, factory.

Some five years later, when the 1050K was introduced in fall 2014, its 13.5-liter John Deere engine developed 350 maximum net horsepower. Average weight was 95,000 pounds—94,000 with a semi-U (Universal) blade and a single-shank ripper, 96,000 with a semi-U and a multi-shank ripper—and a bit less when a winch or 5,000-pound counterweight replaces the ripper. Track-on-ground was just shy of 135 inches, and a heavy-duty, dual-path hydrostatic drive system transmitted power to the ground.

These ample specifications, says Mark Oliver, John Deere’s product marketing manager for crawler dozers, ensure that the 1050K will be productive at what it’s designed to do—“push a lot of dirt and rock,” he says—and will also give buyers more choice in the production-class market. Oliver is quick to add, however, that serviceability and operator efficiency were also high on the list of design goals.

“Serviceability and uptime are critical for a machine this size,” says Oliver. “With its tilting cab—an industry exclusive for a machine this size—the 1050K can be placed in a service-ready orientation in about 10 minutes for wide-open access to major hydraulic and hydrostatic components. There’s also great access to the engine, despite Tier 4 aftertreatment hardware.”

The decision to use hydrostatic drive, says Oliver, was based on the system’s overall efficiency and reliability, as well as on the company’s long experience with the system. Because John Deere is both building the engine and writing the software for the hydrostatic system, he says, the 1050K can be “dialed in” for optimum performance. But beyond those advantages, says Oliver, the hydrostatic system also provides the most latitude for operators to tailor machine performance to their preferences:

“Production-class dozers typically are run by the best, most-experienced operators, and we wanted to offer these people the ability to customize the 1050K’s performance to their liking—an important consideration in high-production applications.”

Source:http://www.constructionequipment.com/1050k

Philippines: Infrastructure investment is over 400 billion pesos

To improve the environment and attract foreign investment so as to develop economy, the Philippine government intends to invest more than 400 billion pesos in the construction of infrastructure this year. It’s reported form the “Philippine Star” on 2014, March 24, in the economic briefing held by the Philippine government last week, the Minister of the budget Abad said the Philippines would invest in infrastructure construction up to 404 billion pesos this year accounting for about 3.1% GDP, while the investment was 288 billion pesos last year. Next year it plans to invest 587 billion pesos in infrastructure accounting for about 4% GDP. He said it would mainly invest in the infrastructure related to tourism, manufacturing industry, agriculture and fisheries, such as 52 key fishing ports which have been identified. Abad said that in order to sustain economic growth, the Philippine government would plan to invest  1,836 trillion pesos in infrastructure for the next three years, of which, 2014,2015 and 2016 would respectively invested 400 billion, 600 billion and 8,36 billion pesos. Abad said in the second half of the 2013, Philippine public-private partnership projects had achieved great progress. The projects with a total of 275 billion pesos had been passed all the year, in the future, investment in infrastructure will be mainly based on PPP project
Source:http://www.thorions.com/index.php?m=content&c=index&a=show&catid=28&id=410

Construction equipment sector expects market growth in 2015

A majority of construction equipment manufacturers in Europe expect their sales to increase this year by 3 to 10% compared to 2014, bouncing back from slightly more pessimistic expectations in the previous quarter. This according to the regular survey of manufacturer sentiment, held by CECE.  

Machine manufacturers in Germany are the most optimistic while, in terms of market development, expectations are highest for the UK market. Beyond Europe, expectations are especially high for North America and the Middle East. By product group, it is the component manufacturers segment that sees the business climate as currently the most favorable.

The most decisive factor for the near future will probably be how industry customers will deal with the big political uncertainties of this time. This could cause postponements to investments that are not absolutely essential.

Source: http://www.cece.eu/news-and-events/news-details/article/construction-equipment-sector-expects-market-growth-in-2015/

South Africa's economy grows by 4.1%

South Africa's gross domestic product (GDP) increased by 4.1% in the fourth quarter of 2014, Statistics South Africa (Stats SA) announced on Tuesday.

"Real gross domestic product at market prices increased by 4.1% quarter-on-quarter, seasonally adjusted and annualised," Stats SA said. This growth was more than what markets had expected.

"GDP growth accelerated by much more than the markets expected in the final quarter of 2014, growing by a seasonally adjusted and annualised 4.1% quarter-on-quarter, up from 2.1% and 0.5% in the third and second quarters respectively and better than the consensus market forecast of 3.7%," said Nedbank economists.

The largest contribution to the quarter-on-quarter growth of 4.1% was manufacturing that contributed 1.2% based on growth of 9.5%. The mining and quarrying industry contributed 1.1% based on growth of 15.2%. The finance, real estate and business services contributed 0.7% based on growth of 3.5%.

Economic activity in the manufacturing industry reflected positive growth of 9.5% due to higher production in petroleum, chemical products, rubber and plastic products division, among others. 

Mining and quarrying

Meanwhile, economic activity in mining and quarrying reflected positive growth of 15.2% due to higher production in the mining of "other" metal ores, including platinum; and "other" mining and quarrying, including diamonds.The growth in finance, real estate and business services was due to increases in activities in the financial markets and banking.Over 2014 as a whole, real GDP grew by only 1.5%, down from an already tame 2.2% in 2013. 

Market prices

According to Stats SA, the nominal GDP at market prices during the fourth quarter of 2014 was R979-billion, which is R16-billion more than in the third quarter of 2014.Real GDP at market prices increased by 1.5% in 2014 following an increase of 2.2% in 2013, with the largest contribution to the increase in 2014 being general government services, which contributed 0.5% based on growth of 3%. Finance, real estate and business services contributed 0.4% based on growth of 2.2%Nominal GDP was estimated at R3.8-trillion for the year of 2014.

According to the Nedbank analysts, the economy should fare better in 2015 off the low base of 2014. Consumer spending is forecast to accelerate as lower fuel prices and easing inflation support disposable income and interest rates remain steady for much of the year.

This, along the low base of 2014, is expected to outweigh the negative impact of load shedding, lower international commodity prices and subdued global demand on exports. On balance, Nedbank expects GDP growth of about 2.5 % in 2015.

The Reserve Bank's Monetary Policy Committee is unlikely to read too much into the stronger-than-expected GDP figures. The risks to the economic outlook still remain on the downside given limited power and other economic capacity locally and an uncertain economic environment globally.

In contrast, the inflation outlook remains benign, which should persuade the MPC to keep interest rates unchanged at its upcoming meeting in March. Our forecast is for rates to remain on hold throughout most of 2015, with the first rate hike expected in November. Much however depends on the trajectories of the rand and oil prices," said Nedbank.

Read more: http://www.southafrica.info/news/business/gdp-250215.htm#.VPhAjM6k-_I#ixzz3TViSODmB