EQUIPMENTS: The lack of projects continues to affect the suppliers

While the unlocking of structural funds is pending, the volume of investment funds in the construction sector will remain at a low level this year. As a direct result, according to the forecasts of the members of the Construction Equipment Distributors Association (ADUC) – that represents more than 75% of the market – the sales of construction equipments showed a contraction of about 25% in the first five months of 2013 over the same period in 2012. Declines were recorded especially in the segment of high-capacity machines, while the small ones recorded even slight increases, while the average capacity equipments are at levels comparable to those registered in 2012. Referring to a possible market development for this year, the ADUC officials remain moderately optimistic, but are not willing to present an accurate estimate because of the uncertainties in the market. In terms of annual data, under the impact of the prolonged economic crisis in Europe and the lack of investment in the local construction sector, the board of ADUC argued that there was a contraction of 15% in sales of equipment in 2012 compared to 2011 levels, when 1,209 units were sold. The rental market is also on a downward trend, far behind other countries from Western Europe. Thus, in the West, construction companies prefer to rent only the equipments necessary for each work in part, while in Romania most entrepreneurs have their own specialized vehicles parks. The lack of a robust rental market led eventually to the false impression that the rented equipment is financially less profitable than a new one. It must be specified, however, that a firm specialized exclusively in rental services uses new equipments, that are well maintained and benefits from a fairly large park of vehicles. The expenditure is, therefore, more efficient and the operating costs are reduced, these ensuring a fair rental price for the user. According to the estimates of ADUC, the rental market represents less than 5% of all local construction equipment industry. For further information and a detailed analysis of the current Agenda Constructiilor issue click here!