|
Editorial
When the going gets tough...
With the government projecting an investment to the tune
of $ 500 billion by 2012, the Indian construction equipment
industry has steadily been charting a new course of growth
over the years. In spite of inflation and rising steel price,
the IE horizon seems to be bright as the first quarter sales
figures of various CE manufacturers show no signs of a serious
dip and the expansion drive continues unabated. According
to the survey conducted by Equipment India, though certain
segments like the earthmoving equipment have registered a
dip, overall, the present economic scenario seems to have
left the growth prospects of the equipment industry unscathed.
And there too, it is understood that the fluctuation was more
due to the monsoon, rather than the slump in the real estate
market. Also, as per industry sources, a major reason for
the slump in sales was due to the unmindful way the financing
industry went out its way in financing customers without adequate
safeguards in place.
For many OEMs there was no impact at all. At the same time
there is a word of caution. Even though the demand for equipment
in various segments has not slackened, despite the inflationary
pressures, experts points out that if the prices of steel
and other inputs keep rising, in a mid term to long term perspective,
it would affect the infrastructure projects viability which
in turn would affect all segments of industries cutting across
the sectors.
Steel prices have gone up 2-3 times within the last three
to four years, which, can destabilize and decelerate the momentum
of the IE sector. All eyes are on the planned projects and
as long as they see the light of the day in the days to come,
the equipment industry too will grow, as the unwavering confidence
of the industry underlines a sustainable future. Equipment
India features an exclusive report on some of the top selling
manufacturers and the trends in various segments of IE industry
in these tough periods. Hopefully the saying, “when
the going gets tough, the tough get going” will be proven
true by the IE industry.
| |
