Construction machinery industry grows in the country, but far from the record

With slightly higher than expected performance for 2018, the construction machinery sector awaits a policy definition and for the return of major works to grow vigorously. The total market should reach 10500 machines this year, well below the record of 2013. "We started the year pessimistic, after the weak level of 2017, which was about 8000 machines. To give you an idea, in 2013 the market reached 30000 units, "says Vice President of Case Construction to Latin America, Roque Kings. According to him, the expectation was for stability this year, but the projections were revised three times by the Brazilian Association of technology for construction and mining (Sobratema). For Kings, the result is due to a higher number of sales coming from public bids. "There were about 2000 bids, which is not as common in election year." After living a moment of great heating in mid-2011, the industry declined in the face of the economic crisis that hit the country from 2014. "The market is no longer as they used to. The infrastructure has stopped, the great works are not occurring. The industry is waiting for political definitions, "says Reis. The Executive claims that the renewal of the fleet is helping to move the market, with significant participation of agribusiness. "The real devaluation against the dollar, but the price of the machines didn't come up. If you're investing, the moment is advantageous. Some sales that we made were still good equipment exchanges, "he explains. Despite this, he estimates that about 40% of the national fleet is idle. "It will take a bit to get the heavier investments. When there is a change of political party in power, it takes some time to coordinate the actions and works. The first semester must be stopped. " With the internal market and the slow Exchange rate devaluation, companies have turned to exports. "Our competitors resumed shipments more intensely. We have exported to markets such as Russia, India and Latin America, "says Reis. He claims that after tweaking movements in 2017, the workforce was stabilized in Case Construction factory in Sorocaba (SP). "The growth came on the landing near the expected. With that, there was no need for layoffs or hiring. " Agricultural machinery Vice President of Case IH Latin America, Mirco Romagnoli, says that the market for agricultural machinery is above expectation. "It's better than last year. Varies by commodity, but grows around 10% to 15% on average. The forecast is 40000 tractors in Brazil this year. " Although the number is lower than that of the industry's finest hour, also in 2013, when the landing came around 60000 units, Romagnolli pretend that stems from special circumstances of that time. "It was a spectacular year, but a little artificial. The Government has made available a very cheap credit line and everyone took advantage. " In addition, it assesses that there is a change of method of producers. "The current trend are bigger machines and to a lesser extent". He says that these larger equipment are extremely expensive and imported from the USA. On Tuesday (25), the Brazilian Association of machinery and equipment industry (Abimaq) disclosed that, in August, there were 38.8% high on importation of agricultural machinery. "Are models that Brazil still does not manufacture. But local manufacturers are already gearing up to produce them, "said the Chairman of the Board of Directors of Abimaq, João Carlos Marchesan. This product type represents only 3.8% of sales locations. Romagnolli States that this type of investment arises from the need to reduce the fleet and costs. "Are tractors and combines. A few years ago, care around 10 units. Now the market has risen to 150. " He says that if this trend is maintained, the manufacturers will produce in Brazil. "The Country attracts this kind of investment, with large-scale agriculture, lack of skilled labour and productive activity throughout the year. The potential is enormous. "/* the reporter travelled at the invitation of CNH.