Most recently, last year’s 10 per cent contraction was due to the country's uncertain political climate and lack of confidence in long-term economic stability. One major factor contributing to this decline was the halting of planned construction projects by the previous government, which had a direct impact on the demand for construction equipment.
Construction equipment sales last year were worth US$ 317 million. The most valuable segments are crawler excavators and wheeled loaders, which are both high volume and high value machine types in Colombia.
Off-Highway Research anticipates a further market fall of 16 per cent this year. Despite a substantial increase in equipment imports driven by the rush to purchase technology before the change in emissions regulations implemented on August 8, we expect sales to decline due to current uncertainty in the country, high-interest rates, and a weakened Colombian peso compared to the dollar.
The market is expected to bottom-out in 2025, after which a more optimistic outlook is expected. With the potential for a change in government and greater economic stability, the market could begin a gradual recovery.
The Construction Equipment Industry in Colombia is now available to download for subscribers to Off-Highway Research’s South American Expert service. For more information about setting up a subscription to this service, please contact [email protected]
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