Australian Imports of Heavy Equipment Slump

Australian Imports of Heavy Equipment Slump

A nwe monthly measure of construction and mining equipment imports has underlined the dramatic effect the global financial crisis has had on demand for heavy equipment in Australia. 

The Skelton Sherborne Shipping Index is compiled by heavy equipment freight forwarder Skelton Sherborne using its own research and import data from the Australian Bureau of Statistics.

The first release of the index covers the 12 months to June this year. Skelton Sherborne says in future it will be updated monthly.

The July 2008 to June 2009 index results reveal startling falls across the board in heavy machinery imports.

The crunch delivered by the global financial crisis in September is clearly shown, with a peak of 6105 heavy machines imported in August 2008 dropping 90% to 602 machines in May this year and 623 in June.

August 2008 imports were worth a total of $A368 million while June 2009 imports were worth $105 million, a fall of 71%.

Imports of mining and construction dump trucks sank 91% to 12 units and excavators over 12 tonnes fell 91% to 26 units.

Imports of pavers, profilers and graders also fell around 90%.

Skelton Sherborne director Brad Skelton said it was curious that road making and paving equipment imports had fallen so strongly.

“That is the sector the federal government has been pouring money into – building more roads and infrastructure,” he said.

“I am not an economist but my layman’s logic would be that that should increase.

“If the stimulus is working, you would think that would be increasing. But it’s down close enough to 100 per cent.”

Skelton said he received daily feedback from small and medium-sized contractors that they were struggling to get finance.

He said increasing commodity prices suggested equipment demand should soon pick up in the mining sector, but he had doubts about a quick recovery in construction equipment imports as many of Skelton Sherborne’s customers already had large inventories on hand or idle equipment.

By Sinoway Industrial Co.,Ltd
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