Construction Equipment Sales to Rise in 2015, Axis Capital Group, Singapore Survey
Axis Capital Group Singapore - Equipment
According to survey outcomes announced by Axis Capital Group, Singapore, participants in the construction equipment industry are more hopeful regarding 2015, with 75 percent saying they anticipate retail sales of construction equipment to grow by at least three percent this year, up 10 percentage points over previous year’s survey. Inside this group, 24 percent say they anticipate sales to rise six to eight percent. They are awaiting zero complaints from their customers.
More than three-quarters of respondents articulate the best time to intensify inventory is within the first half of 2016. Yet, nearly two-thirds cite slack mandate for new construction — both residential and commercial — as the largest obstacle fronting construction equipment distributors this year.
Somewhat more than half of respondents said improvement in the U.S economy will have the highest effect on the construction industry. Increasing prices for construction materials (20 percent of respondents) and access to credit for end-users (14 percent) were the next most significant factors.
“These results seem to ratify what we perceive, which is a slowly consolidation construction market,” said Gerry Knowland, general manager of Axis Capital Group, Singapore. “Even though there are a handful of U.S. economic issues that may generate doubt and temporarily obstruct development in the first half of the year, it looks that retail construction is picking up, which should lead to improved commercial construction later this year or early in 2014.” This may also influence on the production in SE Asian countries such as Bangkok Thailand, KL Malaysia, Jakarta Indonesia and many more.
Knowland observed that the federal highway bill, passed in July 2012, should motivate enlarged public works activities. Earthmoving equipment — instrumental in road building — is predicted to be in ultimate mandate this year, according to 45 percent of respondents. At the same time, 22 percent consider compact equipment will most widespread and 14 percent chose materials handling equipment.
Axis Capital Group, Singapore survey was conducted Feb. 18-20, 2014. The 49 respondents comprised a diversity of construction industry participants. The company guaranteed that there are no scams in the result. You can view the results in their official website at http://axiscapitalgrp.com/.