bauma China 2014 reflected in high demand for machine models

As I write this column, 7556 bauma China 2014 is getting underway at the Shanghai New International Expo Centre. The four-day exhibition promises to beat records set in 2012, with a large number of leading OEMs unveiling new machines. The worldwide importance of what is one of THE key exhibitions for global construction equipment manufacturers is reflected by the continuing high demand for new machine models across the world’s most populated nation.

This is largely fuelled by huge year-on-year government investment in China’s infrastructure. This investment is also, according to independent market analysis, increasing Asia-Pacific’s share of overall global aggregate demand, valued by industry researchers at $106.4 billion in 2013.

Continuing on a Chinese theme, this issue of Aggregates Business International contains an interview with 448 Metso CEO and President Matti Kähkönen who talks about the huge sales growth potential of the Finnish crushing and screening equipment giant’s new 50-50 joint venture with 441 LiuGong, one of China’s major equipment manufacturers.

I was part of a Route One Publishing Daily News team at 470 Trimble Dimensions 2014 in Las Vegas, USA in early November. As well as hearing about Trimble’s exciting technology for the aggregates sector, such as the Dimensions 2014 launched machine payload data platform Insight HQ, I had the chance to talk to the construction technology solution firm’s CEO and President Steve Berglund about 3599 Trimble’s key regional global markets. What he had to say about China, and also India, stood out. “I think places such as China and India have the potential to skip generations of technology and go to the latest technology available and really use it to effect change.”

India, home to around 1.2 billion people making it the world’s second most populated country, is the focus country for our latest Market Report. New Indian Prime Minister Narendra Modi has promised to spend over US$32 billion on new infrastructure, while, concurrently, removing much criticised bureaucratic hurdles to major turnkey projects. Such talk from the charismatic Modi is said to have created huge optimism and fantastic opportunities for international construction equipment manufacturers with strong quarrying and aggregate-linked model lines, some of whom have talked to ABI about their ambitions within and equipment range for the Indian market.

Fantastic opportunities for OEM sales growth are also apparent in Africa. In our Quarry Profile this issue we look at how a modular Metso crushing and screening solution is allowing a quarry company to overcome Mozambique’s difficult operational environment and meet growing national aggregate demand. Record growth in coal production and the implementation of mega infrastructure projects, coupled with budgetary expansion, has seen the African Development Bank tip the Southeast Africa country to achieve GDP growth of around 8.5% this year and 8.2% in 2015. Such eye-catching growth is unlikely to be seen ever again in First World countries, and, indeed, entire continents such as Europe.

Growth figures such as those tipped for Mozambique also raise expectations for what Africa-based construction equipment exhibitions, such as next year’s 7460 bauma Africa in Johannesburg, South Africa, can do to help drive up global construction equipment sales.