Russian demand forecast to soar
26 March 2012
Demand for construction equipment in Russia, including earthmoving and road building machines, is expected to jump in coming years in line with increased infrastructure investments in the country.
According to research company PMR, construction machinery stock owned by contractors in Russia has been depleted by 40% to 60% on average over the last decade.
PMR reported a 75% reduction in the number of wheeled tractor-scrapers in use in Russia since 2000, and a 61% reduction in wheeled cranes, while the numbers of crawler, mobile and tower cranes have been more than halved, and a 40% reduction in single-bucket excavators and motor graders was seen.
On average, dilapidated construction machinery still accounts for more than 50% of total equipment stock in Russia. In categories such as excavators, bulldozers and mobile cranes, less than half of total stock can be categorised as dilapidated, whereas with equipment such as graders and scrapers the figure is more than 60%.
PMR highlighted the fact that extensive investment is expected in Russia's infrastructure in the coming years, including in the road building and power sectors - activity which it said would drive demand for all kinds of earthmoving, road building and other equipment for many years.
PMR said, "The Russian construction equipment market, given the poor average condition of machinery currently in use by Russian builders, boasts many opportunities, for foreign producers in particular. This is due to the fact that the production capacity of the Russian machine building industry will not be able to satisfy the demand which will result from the extensive construction work planned, either in terms of quantity or the quality of equipment and the product range."