Photo Courtesy Ford Motor Co. Sales of pickup and highway trucks look healthy, but mining haulers likely will slide in 2015. Enlarge Related Links: 2014 Equipment Forecast 2015 Construction Forecast Most equipment categories are on track for a steady sales climb in 2015, but uncertainty in specific end markets—road construction and mining, for example—could bog down sales of larger machines, such as cranes and haul trucks, analysts say. Contractors are expected to continue supplementing existing fleet capacity with short-term rentals, putting pressure on suppliers to have the latest models on their lots next year."Uncertainty in the marketplace is really good
Photo courtesy Terex/Genie Aerial work platforms are a main growth area for rentals in China, experts say. Related Links: Around the World With Ron DeFeo At Bauma China, Soggy Times for Machinery The equipment rental business is growing in an unlikely global market: China. Softening construction demand is forcing Chinese construction firms to gradually shed their traditional preference for owning equipment.Similar trends have been in the works in the United States and other countries in recent years. “Contractors disposed of a lot of equipment during the recession and now, rather than buying new machines, are using rental equipment because of
Despite its associated energy costs and the availability of cheap imports from China and Pakistan, demand for cement in East Africa has continued to rise. The need to increase cement production to feed the region's booming construction industry dominated discussions at a workshop meeting of East African cement producers and German cement-equipment manufacturers in Nairobi, Kenya, on Nov. 20.Annual demand for cement in East Africa is now estimated at 6 million metric tons, with Kenya’s demand alone estimated at some 3.5 million metric tons, according to Kenya's National Construction Authority (NCA).East Africa's cement makers, including subsidiaries of German-based Heidelberg and
French-based building-materials manufacturer Saint-Gobain Group announced plans on Dec. 8 to acquire a controlling interest in Swiss-based construction-chemical maker Sika AG. One of the largest makers of building products in the world, Saint-Gobain arranged the purchase of 16.1% of Sika's shares and 52.4% of its voting rights from the family of the company's founder.Both companies have North American subsidiaries, and the merger is expected to combine their broad portfolios of building products. "The complementary synergies [of the acquisition] also apply to North America," says Susanne Trabitzsch, spokeswoman for Saint-Gobain. "We expect to have a stronger presence in the U.S. that
Photo by Tudor Van Hampton/ENR DeFeo sees near-term expansion opportunities in India. Related Links: At Bauma China, Soggy Times for Machinery Under the longtime direction of Ron DeFeo, Terex Corp. has recently refocused product lines to curtail exposure to general equipment markets while increasing its global footprint in higher-end machinery, such as cranes, aerial work platforms and port equipment. Expecting Terex to achieve annual revenue of $7.3 billion to $7.5 billion this year, DeFeo spoke with ENR over the phone shortly after last month’s Bauma China exhibition wrapped up.ENR: What are the business prospects of Terex in the next two
Photo courtesy of Bauma China Soft global markets cast a pallor over the biennial Bauma China equipment exhibition last month. Related Links: Chinese Producers Hope 2015 Brings Better Times Machine Producers Suffer From Excess Inventory Faced with another year of flat global growth in 2015, executives in the construction-equipment business can barely hide their frustration."The U.S. market should be in a strong recovery," says Ron DeFeo, chairman of Terex Corp. "But because there is lack of confidence in the vision on infrastructure, we are still somewhat slow to recover." He did not see much business coming from reconstruction in war-
Photo by Saibal Dasgupta/ENR Su ZiMeng is Secretary General of the China Construction Machinery Association. ENR caught up with him last month at Bauma China. Related Links: At Bauma China, Machine Producers Suffer From Excess Inventory Where East Meets West, China's Uphill Battle Su ZiMeng, Secretary General of the China Construction Machinery Association, represents member companies that form a large part of China’s estimated $1 trillion manufacturing industry, arguably account for half of the world’s heavy-equipment production and include 11 of the world’s top 50 equipment makers. The bulk of business comes from government-financed projects, though export revenue is growing.
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