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Asian demand fuelling big growth tipped for global machine sales

First publishedin Aggregates Business International
September October 2017
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SDLG, Linyi HQ excavator assembly line

Readers of this magazine know very well how any notable rise or fall in Asian demand for construction and quarrying equipment is felt the world over. With China, the world’s biggest consumer of construction equipment and aggregates, and India, one of the world’s fastest-growing aggregates and construction equipment markets, representing East and South Asia respectively, it is no surprise that a new report by Off-Highway Research (OHR) suggests both Asian nations will be the driving force behind what could be a 16% rise in worldwide construction machine sales. OHR states that on a global basis, sales of construction machines are expected to exceed 810,000 units in 2017, with a value of more than US$80 billion.

While the OHR report says that most major territories will see growth during 2017, China’s resurgence will be crucial. Indeed, as OHR notes, crawler excavator sales in the country have more than doubled in the first half of 2017, compared to the same period of 2016.

OHR tips a strong Indian construction machine market to see 10% sales growth in 2017, after highly impressive 26% growth last year. Continued improvement in 2017 will, OHR forecasts, see total machine sales to India beat the previous record high of 54,065 units in 2011. For an example of the vibrancy of the Indian market, take a look at this issue’s report on how a 200tonnes/hour Terex Finlay track plant is being used on a major road project in Eastern India.

Remaining in Asia, OHR also expects Japan to see a 4% increase in construction equipment sales this year, following a slump in demand last year.

Over the longer term, OHR expects global construction equipment sales to rise to close to 900,000 units by 2021, with a value of more than US$90 billion in today’s terms.

Continuing on an Asian theme, this summer I visited Linyi-China headquartered SDLG to take a first-hand look at how the ambitious company is progressing towards its goals in the worldwide construction and quarrying machine sectors. You can read my impressions of what I saw in a three-page special feature inside.

Still in Asia, this issue’s Quarry Profile looks at how Volvo Construction Equipment machines are enabling a South Korean aggregates company, granted special permission to excavate granite from a restricted access military area on Ganghwa-Gun, an island just off the northwestern tip of the country.

Our final Asia-based story this issue takes place more than 4,300kms from South Korea, in Gorontalo, Indonesia, where Rubble Master’s RM 70GO! 2.0 compact crusher is being successfully operated by PT. Anugerah Andalan Perkasa.

Elsewhere in this issue you’ll find three Africa-focused articles. Our latest Market Report looks at the diversity of aggregates demand across the vast continent and the key issues shaping it. We also have a special feature on what makes the perfect wheeled loader for African customers, and how leading OEMs are adapting their models to suit their applications. Finally, the ABI Sep-Oct 2017 Interview is with Mikhail Kirienko and Qasim Abrahams, the vice president – Operations Africa; and vice president – Sales & Service Southern Africa respectively of Metso Southern Africa’s all-new executive team. Both are keen to stress how understanding their customers’ businesses and the provision of unmatched service are key focuses going forward for the Southern Africa operation of the Finnish global quarrying and mining equipment solution giant.

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