FALLING coal demand may cause mining equipment sales to fall by 20% in 2009, according to the Construction & Mining Equipment Industry Group (CMEIG).
The Australian construction and mining equipment market reported a 6.5% decline in 2008. However, experts predict sales will further decline during the first half of 2009 before they stabilise.
CMEIG chief, John Reid, says falling demand for coal and iron ore will have an “adverse impact” on new equipment demand, as equipment purchasers find it more difficult to obtain financing.
“Smaller contractors will be hardest hit, which will affect sales of lower to mid-range machines,” he said.
Experts predict the total market will fall by around 20% in 2009, while sales for construction and mining markets may decline by around 12% due to reduced activity in the construction market.
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