A seismic shift

There has been a formidable shift in the sales trends of construction equipment globally, a trend that is expected to continue in the near future. The US, which went from 28 per cent in 2006 to 12 per cent in 2011, is expected to recover three percentage points by 2016, reaching the 15 per cent of world demand. The analysis of emerging countries reveals a steady growth of the Indian market share (from 3 per cent in 2006 to 5 per cent in 2011, to the forecast 8 per cent in 2016) and a substantial slowdown in the Chinese sector, that, having grown from 18 per cent in 2006 to 42 per cent in 2011, should now show a reduced share to 37 per cent by 2016. In Brazil, forecasts by the association Sobratema estimate a ten per cent growth in the sector in 2013.

India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players in the market. The country has witnessed a substantial number of regional equipment manufacturers and international OEMs from various parts of the world stepping up their presence and activity levels. Ammann Group, the Swiss CE maker, which recently bought into Gujarat Apollo, is happy to add large-sized pavers to its portfolio and is planning to make this platform a springboard, as revealed by Pirmin Hanggi, Director of Communications and Herbert Pirklbauer, Managing Director on the sidelines of Bauma Media Dialogue.

Although India is a smaller market for construction equipment, compared to China, its growth continues to be strong and many countries see it as one in which to expand export potential. The CE sector in the UK is worth in excess of $13.5 billion and it exports around 70-75 per cent of production. As per reports, there is an increased interest in German companies to set up manufacturing/sales and service facilities in India. The export of German plants and machinery to India in 2011 touched the record figure of Euro 3.69 billion which was a growth of 18 per cent. The export of German construction equipment and building material machinery to India in 2011 attained a figure of around Euro 120 million. The total value of Italian exports to India for 2012 was pegged at around Euro 33 million. The total value of export of French equipment to India in 2012 was around Euro 27.7 million.

The tremendous success bC India has had, in its inaugural edition in 2011, and the current edition, which has already been booked by over 700 exhibitors from around the world, clearly underlines India as an emerging sourcing and manufacturing hub for global players. There are official pavilions from China, France, Germany, Italy, Japan, Korea, Spain and UK, and with regard to international exhibitors, bC India 2013 is expected to see 438 exhibitors from 382 exhibitors in 2011. So, even as Bauma is right round the corner, up and running in 50 days, the enthusiasm for bC India prevails as far as in Europe. bC India 2013 and Bauma are likely to make significant contributions to improving the current market sentiments and to set the stage for cataclysmic thoughts and actions..