20 September 2009
The construction machinery industry in the UAE continues to struggle with fewer sales. However, the number of enquiries have increased, which shows signs of better results in the next two quarters.
"There is a slight improvement across the GCC. Saudi and Qatar are two markets that are continuing to do well. The construction sector in these two countries has been less affected compared to the rest of the GCC and it is visible in the sales of machinery as well," said Ninan George, Marketing Manager at Al Wasit Machinery.
He told Emirates Business that while enquiries have increased, they are yet to translate into sales. The situation is the same in Dubai, Sharjah and other Northern Emirates. "It usually takes time for enquiries to materialise into orders. We hope to see some changes in sales figures during the latter part of 2009 and the first half of 2010," said George.
"We do have some business in Abu Dhabi as new construction projects are being announced and work is progressing well on others," he said.
Enquiries are coming in for machinery such as excavators, wheel loaders and similar products, said George. Al Wasit deals with machinery manufactured by Hyundai, Sumitomo, GEHL, Hidromek and tower cranes and crawler cranes from Zoomlion.
The decline in sales of construction machinery continues to affect Caterpillar. A spokesperson for the company last week said sales continued to decline in most of the GCC countries except in Saudi Arabia.
"Within the UAE it is only Abu Dhabi where we are experiencing some kind of activity. The rest of the emirates have been experiencing no major movement," he added.
Worldwide too the company suffered a major drop in sales. According to reports, Caterpillar's downturn continued in July as machine sales dropped 48 per cent worldwide.
The global year-over-year decline follows a similar 47 per cent drop in June. Sales of reciprocating and turbine engines worldwide fell 33 per cent in July
Jim Owens, CEO of Caterpillar, the world's largest maker of mining and construction equipment, recently told analysts that his company was poised to benefit from the global economic recovery and would be able to turn a profit even if the recession drags on longer than now expected. Caterpillar in July had reported a 66 per cent drop in Q2 earnings, blaming weaker sales for its products and the cost of job cuts.
Reports quoting Owens said if the company's sales flatten out in 2010 and dealers start to restock their inventories, "we could see a 15 per cent to 20 per cent increase in shipments next year".
By Joseph George © Emirates Business 24/7 2009
The construction machinery industry in the UAE continues to struggle with fewer sales. However, the number of enquiries have increased, which shows signs of better results in the next two quarters.
"There is a slight improvement across the GCC. Saudi and Qatar are two markets that are continuing to do well. The construction sector in these two countries has been less affected compared to the rest of the GCC and it is visible in the sales of machinery as well," said Ninan George, Marketing Manager at Al Wasit Machinery.
He told Emirates Business that while enquiries have increased, they are yet to translate into sales. The situation is the same in Dubai, Sharjah and other Northern Emirates. "It usually takes time for enquiries to materialise into orders. We hope to see some changes in sales figures during the latter part of 2009 and the first half of 2010," said George.
"We do have some business in Abu Dhabi as new construction projects are being announced and work is progressing well on others," he said.
Enquiries are coming in for machinery such as excavators, wheel loaders and similar products, said George. Al Wasit deals with machinery manufactured by Hyundai, Sumitomo, GEHL, Hidromek and tower cranes and crawler cranes from Zoomlion.
The decline in sales of construction machinery continues to affect Caterpillar. A spokesperson for the company last week said sales continued to decline in most of the GCC countries except in Saudi Arabia.
"Within the UAE it is only Abu Dhabi where we are experiencing some kind of activity. The rest of the emirates have been experiencing no major movement," he added.
Worldwide too the company suffered a major drop in sales. According to reports, Caterpillar's downturn continued in July as machine sales dropped 48 per cent worldwide.
The global year-over-year decline follows a similar 47 per cent drop in June. Sales of reciprocating and turbine engines worldwide fell 33 per cent in July
Jim Owens, CEO of Caterpillar, the world's largest maker of mining and construction equipment, recently told analysts that his company was poised to benefit from the global economic recovery and would be able to turn a profit even if the recession drags on longer than now expected. Caterpillar in July had reported a 66 per cent drop in Q2 earnings, blaming weaker sales for its products and the cost of job cuts.
Reports quoting Owens said if the company's sales flatten out in 2010 and dealers start to restock their inventories, "we could see a 15 per cent to 20 per cent increase in shipments next year".
By Joseph George © Emirates Business 24/7 2009
