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Equipment sales dip on rising ambiguity

11th March 2022

By: Sabrina Jardim

Creamer Media Online Writer

     

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Local capital equipment sales have been negatively impacted on as companies are hesitant to make capital investments owing to ambiguity in the construction industry, says construction equipment supplier Shumani Industrial Equipment MD Victor Nemukula.

“There are several government infrastructure projects that have been tendered, but no contractors have been awarded the work as yet, meaning that projects remain in a liminal position.”

He adds that the biggest potential for growth in the South African construction industry lies in road and other infrastructure projects, in the aftermath of the damages caused by last year’s riots in KwaZulu-Natal and parts of Gauteng.

He expects the demand for capital equipment to increase as infrastructure construction projects of this type make headway.

Further, the latest trends and technological advances in the local construction industry include the fitment of telematics devices on capital equipment, which is becoming increasingly popular as the devices become progressive in collecting data from equipment, allowing for an improved maintenance.

Nemukula adds that the benefits of the advancements in telematics devices include a longer life span for equipment and allowing for the relevant distinctions to be made regarding equipment performance.

Telematics devices refer to vehicle tracking systems that collect data on the equipment. These devices can be configured to collect data such as the equipment’s speed, engine temperature and oil levels. Telematics also allow for better control of the equipment to prevent damage.

Reflecting on the doubt gripping the industry, he adds that the local construction industry faces a slow recovery, owing to the effects of the Covid-19 pandemic, and he anticipates the “road to recovery to be a long one”.

“Most infrastructure projects depend on government funding, and government seems to be prioritising Covid-19 relief schemes and unemployment grants ahead of infrastructure projects,” explains Nemukula.

Shumani is an appointed dealer for all Goscor Group companies that import industrial equipment for the South African market and supplies equipment across the industrial and construction sectors.

“Shumani has quoted various municipalities for road construction and maintenance projects and the company is currently waiting for government to award the tenders and give the go-ahead for work to commence,” Nemukula concludes.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

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