Russian Construction Machinery Sector is booming

Russian Construction Machinery Sector is booming

The Russian construction machinery market is currently on a steep upwards curve. This is proportionate to the boom in Russia in road building and general construction projects. The major cities countrywide are showing an increasing demand for new and modern real estate, both in terms of domestic and commercial properties.

It has to be said, however, that in terms of quality and technology, the Russian construction machinery industry does not always bear comparison with current standards. Why should this be otherwise? As a result of the markedly socialist past, most privately managed construction machinery manufacturers come from a background of state management which was not based on any concept of free market competition. You can view this either as a problem or even an opportunity.

The Russian construction machinery sector has a lot of catching up to do to meet current Western standards. For this reason, the market is characterised by a high level of interest in acquisitions, particularly in terms of new technology. There is a further attractive aspect to this business: the culture of paying in cash, which is particularly marked in the Russian construction machinery sector.

The production of mobile cranes in Russia is also profitting from this country-wide boom in construction: with two digit growth rates over the last three years, Russia now has more than 30 manufacturers of mobile cranes. The market is also very concentrated: almost 80% of total production is in the hands of just three manufacturers. Registering a market share of approximately 40%, Avtokran JSC has been market leader for years. The two other big players, each with about 20% market share are Klintsky Mobile Crane and Galich Mobile Crane Plant.

Russia is a prospering market with a range of very promising perspectives. CONEXPO Russia is taking place in Russia for the first time – running from the 15th. – 18th. September in Moscow – and offers a great chance to get to know the Russian market better. Even during the early days before the show, all expectations in terms of filling exhibition space and registration of companies have been clearly exceeded. We hope the show enjoys a high level of success.