RESURGENCE IN EQUIPMENT DEMAND: KOMATSU

During January 2016, construction and mining equipment major Komatsu reported a 11 per cent sales upturn for its major products in the Oceania region, potentially signalling the start of a recovery.

After almost two years of falling demand, this was a welcome year-on-year rise for Komatsu’s Oceania region, which includes Komatsu Australia. In addition to the January spike, Komatsu revealed a 9 per cent increase in November 2015.

The sales growth was for Komatsu’s hydraulic excavators, bulldozers, wheel loaders, dump trucks and motor graders.

Oceania was the sole bright spot in January for Komatsu with only one other region – Europe – experiencing higher demand – albeit, it was much smaller at 2 per cent. Sales in other areas around the world fell with Komatsu recording its sharpest drop of 78 per cent in the Commonwealth of Independent States (Russia).

Earthmoving equipment sector heartened by economic outlook

A recent Reserve Bank of Australia (RBA) statement supports the idea of a small uptick in Australia’s economy.

According to RBA Governor Glenn Stevens, small rises in commodity prices and improving financial market sentiments are encouraging economic indicators for Australia, although uncertainty remains.

resurgence in equipment demand komatsu

In Australia, business lending and overall GDP growth have picked up since 2015, even though a there has been a contraction in mining investment.

Stevens added the RBA believed there were reasonable prospects for continued growth in Australia’s economy.

This is good news for Komatsu and other equipment manufacturers. Ongoing growth will lead to continued demand for plant and equipment within Australia’s resources and construction sectors.

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