The machinery market dropped ten times in the first 6 months

The decline in the construction sector in the first half of 2009 has sharply impacted on machinery sales, which dropped almost ten times year-on-year, according to Marcom, leader of the Romanian machinery market.Although initial estimates of companies in the field referred to a 50 percent drop in sales this year, companies now expect a volume representing 30 percent of the units sold in 2008.

According to Marcom's Marketing Manager, Razvan Marcu, the Romanian machinery market totaled 175 machines in the first five months, according to statistics provided by the Committee for European Construction Equipment (CECE), compared to 1,493 units sold in the same period of 2008.

"We believe that, if the Government supports the acquisition through European funds, the market could amount to some 800-1,000 units by year-end, down from the initial forecast of 1,200 units," Marcu told Business Standard.

"Marcom hopes for a more aggressive program from the government, to support construction and improve lending conditions, which could generate sales on a market that clearly needs machinery. The European funds will be Romania's success in the short-run, but only if information reaches constructors and procedures are very clear," the company official added.

The company postponed investments for the time being, to preserve liquidity. "Planned investments have been stopped for the moment, but not completely abandoned. They will be resumed when things return to normal. We are aware of the fact that this crisis will last for at least another year, and in the current conditions, the ideal measure is to preserve liquidities," the Marketing Manager stressed.

Business Standard