Q4 of 2020's Industrial & Construction Machinery sector marked a 3.1 per cent decrease while foreign trade decreased 5 per cent. As most economies are emerging from a covid lockdown, the increase in demand for construction equipment will require wholesalers to be ready to react.
Overview of the Industry
According to the Department of Statistics, the Industrial and Construction Equipment sector encompasses the following:
- SSIC 46530 Agricultural machinery, equipment and supplies
- SSIC 46541 Industrial machinery and equipment (e.g. industrial crane)
- SSIC 46542 Construction equipment (e.g. concrete mixer)
- SSIC 46543 Lifts, escalators and industrial and office air-conditioning equipment
- SSIC 46544 Electrical and wiring accessories
- SSIC 46549 Industrial, agricultural, construction and related machinery and equipment
Construction contracts for the built environment sector in Singapore are set to rise to between $23 billion to $28 billion this year (from $21.3 billion last year). Examples of these public sector developments are public housing, transport such as the anticipated Jurong Region Line, the Cross Island Line and Phase 2 of the Deep Tunnel Sewerage System, upgrading cycling paths, parks and healthcare infrastructure. Also on the horizon are potential new contracts for Changi Airport Terminal 5 and the expansion of the two Integrated Resorts. Private sector demand such as condominiums will improve in tandem with the recovery of the global economy. All these mean that some form of construction usually takes place somewhere, which drives the demand for construction equipment.
Digitizing the Industry
In Singapore, construction companies have the option of purchasing or renting these heavy-duty machineries. Construction sites usually require a range of equipment for storing, filtering, digging, lifting, trenching, loading and excavating. The decision to rent or buy will make a difference in operations, project management and the budget.
Digital solutions can also help wholesalers manage their inventory with regards to depreciation and maintenance schedules to ensure a smooth transition from when the equipment is in the field to its time it requires servicing. Contractors will more likely return to a highly reliable equipment provider for their future project needs.
Providers for such equipment in Singapore are Tractors Singapore Limited, Land Equipment Pte Ltd, JP Nelson, Galmon, Hitachi Asia Ltd.
If you have any questions or would like to discuss any of our digital solutions, we encourage you to contact us at sales@zooloo.asia. We would be glad to hear from you.
Explore more
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
