2014 was a crazy year for both Equippo and the global heavy equipment industry. Equippo launched in November 2014 to offer a simple, honest and direct way for buyers in emerging markets to buy heavy equipment. A world-wide, rollercoaster of economic changes saw up-and-downs in the construction and equipment sectors. We breakdown our year and yours in this 2014 wrap up of Equippo and our global markets.
Russia has been a key-market for Equippo since our very beginning. Although 2014 was a crazy year for used equipment in general, this was particularly true in Russia. The economy and currency in Russia grew in volatility from mid-year onward. The close of 2014 saw the greatest drop in the Ruble’s value against the Dollar since 2009. In terms of equipment, this change in currency valuation means that Western equipment is becoming increasingly expensive, even without further devaluation.
As we discussed in an earlier blog titled New vs Used: 6 Takeaways on Dozer Sales Trends in the U.S., used equipment sales tend to rise in times of economic turmoil. Will that be the case in Russia? Will the Russian construction equipment market see a crisis like 2009, an even-worse crisis, or could this time be different entirely? The interesting element of the Russian economic crisis this time around is that the country continues to invest in major infrastructure projects. The used equipment industry can greatly benefit Russian contractors and public-works projects, offering as low-cost an option as possible for construction and heavy equipment. From what we hear, major price hikes around 30% to 40% for new equipment in Russia are hitting the market right now. Equippo will remain committed to the Russian market in 2015, and flexible enough to serve as a trading partner in economically uncertain times. Whether that be as an importer of used heavy equipment into Russia, or as an export partner to help secure Euros from Western markets.
Equippo was proud to enter the LATAM market selling premium used equipment from Europe. We added value to an oversaturated market by allowing LATAM buyers to access European or American quality equipment without any hassle or worries about customs or transport. Equippo has seen a tremendous outpouring of support from the LATAM market, for which we are grateful. At press time, our Equippo Facebook page has over 6500 fans, the overwhelming majority from LATAM. Equippo was featured in both KHL’s LATAM publications, Construccion Latinoamericana and Construcao Latino Americana.
We are eager to help South American end-users to buy used heavy equipment from North America and Europe without hassles. Finding high quality, easily-imported machinery is becoming more and more difficult over time. This is especially true now, when some economic concerns have affected the equipment industry of some countries in South America, like Brazil. Equippo will continue to focus on Latin America in hopes of simplifying the equipment purchasing process for LATAM contractors and end-users.
Poland is one of the largest used equipment markets in Europe. 2014 saw some ups and downs in the European construction market. For Poland, 38% of the country’s imports are for machinery— this shows just how robust both construction and machinery industry is to Poland. But Poland has been impacted to some extent by the political and economic problems faced by Russia and Ukraine. After all, Poland has been one of the main gateways for used equipment from Europe going further east. Given a fairly stable 2014 with good GDP growth, and healthy expectations for 2015, the Polish equipment market will likely be just fine with it’s domestic opportunities.
2015 will still not be easy, and we think it will be a year for Polish buyers to be smarter and look outside of their country to get the best equipment for the job. Equippo is happy to help with that.
2015 and Beyond! Equippo is Looking Ahead
Economic booms and busts are just a fact of life. Despite the rocky end to 2014 in some markets, Equippo has had an amazing start. We’re ever growing in reach and awareness. In 2015 we’ll look to deepen our relationships with our core markets, and our trusted sales partners in Europe and the United States.
We couldn’t have gotten so far, so quickly without YOU! Thank you for a wonderful start in 2014; we look forward to growing with you in 2015.
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