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LEAD STORY CONSTRUCTION EQUIPMENT

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Construction Equipment –

Aggression with Caution

The COVID-19 outbreak A McKinsey analysis highlights that growth of 9% YoY in FY20-21, according to
and the subsequent construction represents 13% of the world’s ICEMA report. Here are some of the major
lockdowns negatively GDP today. Over the past three decades, the drivers for construction equipment industry
impacted the construction sector has delivered subpar performance that have helped in carrying forward the
growth bandwagon…
characterized by robust growth but flat profits.
industry globally. The road Going forward, the construction ecosystem
construction machinery is expected to experience dramatic shifts Increase in infrastructure investments post the
market witnessed that will redistribute roughly 40 to 45% of the COVID-19 pandemic
significant growth in industry’s value across different players, such Factors impacting construction equipment
the recent past, owing as contractors and machinery suppliers. manufacturers include investments in
infrastructure, residential, commercial,
According to Markets & Markets report, the
to the increased road construction equipment market is projected and industrial construction, mine and well
development programs to reach $250.4 Billion by 2026 from $208.3 construction, and institutional spending. With
undertaken by the central billion in 2021, at a CAGR of 3.8%. This growth the concerted efforts from the government,
and state governments. is triggered by various factors which cover there has been a renewed thrust on
As we move ahead various aspects, like increase in infrastructure infrastructure projects across the country
aggressively yet cautiously, investments post-COVID-19 pandemic, and the work has been happening at full
swing, thereby strengthening the demand for
added by the demand for construction
distribution, digitization equipment and increasing investments in construction equipment. COVID-19 pandemic
and electrification are urban infrastructure resulting in a boost to the impact has been deterred to a greater
expected to be the key construction equipment market during the impact owing to co-ordinated efforts by the
drivers of the construction forecast period. policy makers, construction companies and
equipment industry writes, Despite the impact of COVID-19 pandemic, the allied industries. In short, there’s no such
PRERNA SHARMA. the Indian Construction, Equipment Industry, gloom and doom in the market, which was
backed by strong infrastructure demand in the expected at the start of the pandemic in the
second half of the fiscal, registered a volume year 2020.

34 CONSTRUCTION OPPORTUNITIES|FEBRUARY 2022