Construction equipment industry growing fast

Economic Reporter :
The demand for infrastructure equipment has been increasing since the last couple of years due to the growing infrastructure development in the country.
The equipments are Excavator, Soil Compactor, Wheel Loaders, Backhoe Loader, Telehandler, and Skid-Steer Loader, batching plant, concrete mixer, concrete pump truck, Dump truck and rigs crane.
Sector insiders said the country’s construction equipment market size was estimated at Tk 1500 crore in 2019 but in the last couple of years, the demand for the equipment has increased by almost 200 per cent.
They said public infrastructure development has been one of the prime factors driving the demand for the construction equipment industry to grow.
Additionally, the growing residential, commercial construction and communication activities are leading the market of the equipment to grow steadily, they added.
To increase the stringency of emission norms and reduce pollution, multiple manufacturers are now developing eco-friendly machinery.
They are now integrating telematics and safety technologies into the equipment to enhance operational capabilities. The current machinery average life span is 15 years. Old machines are usually replaced with new upgraded equipment.
“The initial investments are usually high, but secured EMI facilities can significantly change the overall cost. Moreover, replacing the old machines with innovative equipment creates more opportunity in the existing market,” said Jashim Uddin Sapon, General Manager of Motor Vehicle Division of Energypac Power Generation Limited.
Energypac Power Generation Limited is the exclusive dealer of JCB in Bangladesh. JCB is the third-largest construction machinery manufacturers in the world and the No. 1 brand in Europe.
According to him, the industry will attract more companies if secured EMI and packaged solutions are provided to tackle the high cost of the equipment. More companies mean robust retail support, which will ultimately work as the market driver of the industry.
The current key players of construction equipment industry are Energypac Power Generation Limited (JCB), ACI Motors, Powervision Limited, Bangla Track, Earthmoving Solution Limited, and many more Technological innovation, enhanced service quality, spare parts availability, and limited margin with bulk quantity are some of the critical parameters for being competitive in the market.
All the purchases of the machinery are primarily made in Dhaka and Chattogram. Claiming 60 per cent of the equipment is reconditioned, Jashim suggested, “To protect the environment and decrease noise emission, the government should impose more tax on reconditioned machinery and banned usage of equipment in hilly areas across the nation.”
Personal incomes of the country is rising, household growth is increasing, and population migration from rural to urban areas is taking place, which is increasing the need for better infrastructure facilities of the metropolitan regions.
Thus, increasing public investment into the commercial sector can play a crucial role in the construction equipment industry’s market growth.