Qld, WA drive machinery sales growth


Australian construction and mining equipment market increased by 17.1 percent in the first six months of 2011, according to new figures

Qld, WA drive machinery sales growth
Qld, WA drive machinery sales growth

July 26, 2011

The Australian construction and mining equipment market increased by 17.1 percent in the first six months of 2011 compared with the same period in 2010, according to figures released by the Construction & Mining Equipment Industry Group (CMEIG) and Datamotive Business Intelligence (DBI).

However, the market was quite variable with increases in the various product groups ranging from a staggering 127 percent in road rollers to only 2.6 percent in skid-steer loaders.

Total road roller sales went from 245 in the first half of 2010, to 555 in the same period this year.

The results also indicated a large disparity between sales in different states – with Queensland sales increasing by 47.1 percent, while sales in South Australia decreased by 20.7 percent.

Overall, the increased market sales indicate a consolidation of the upward trend apparent in 2010 where sales in that year were 7.3 percent ahead of sales in 2009, says John Reid, CEO of CMEIG.

"There are also large changes in the share of total sales between states, with Queensland increasing its share of total sales from 23.9 percent in the first half of 2010 to 30.1 percent in the same period in 2011.

"The increase in activity in the mining sector, particularly in Queensland and WA, together with the start of some large infrastructure projects, have been drivers of the increase in total market sales," he says.

Other key points of the Australian market for construction and mining equipment in the first half of 2011 included:

  • Hydraulic excavator sales rose by 15.2 percent, with sales of this product group accounting for 43.8 percent of the total equipment market
  • Wheel loader sales increased by 9.6 percent, continuing their strong rise from 2010
  • Dozer sales rose by 21.4 percent reversing the downwards trend evident in 2010, no doubt due to increased activity in the mining sector
  • Motor grader sales increased by a very strong 44.7 percent – indicating the investment by local government, particularly in Queensland
  • Rigid dump truck sales continued their strong demand of 2010, with a further increase of 31.8 percent in the first half of 2011
  • Articulated dump truck sales had another poor result, with sales declining by 3.3 percent in the first six months of 2011
  • Road roller sales were the stand-out result of the period of all product groups, with a staggering 127 percent increase in first half year sales. This result was most evident in Queensland, WA and Victoria, where sales increases were particularly high
  • Sales of smaller machines were varied with backhoe/loader sales up by 5.4 percent while sales of skid-steer loaders only rose by 2.6 percent.

"Demand for both construction and mining equipment should remain strong through the second half of 2011 as the economy continues to recover and mining and infrastructure development continues," Reid says.

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