Constructionshows
The European construction markets of today are turbulent ones. This was revealed in their collapse in Greece, Portugal, Italy, Spain and Ireland. A combined effect of high public debt and speculation-propelled bubbles, built-up during the pre-2008 ‘boom years’, caused the construction markets of these countries to break apart. The bursting of the residential construction bubble was particularly powerful – according to the forecasting group Euroconstruct, there were 2.5 million residential completions in Europe during 2007, but this year’s total is expected to be less than 1.5 million.
Figures from the European Construction Industry Federation (FIEC) show that overall, European construction output has fallen from its 2007 high of €1,597 billion to an expected €1,186 billion this year, a -25% drop. At the FIEC’s two day annual conference, which took place during June in Sofia, Bulgaria, the federation’s Vice-President Jacques Huillard asserted a message of caution. Due to public investment in the civil-engineering and public non-residential segments, and the boosting of energy efficient renovation of private residential buildings by a number of tax incentives and direct subsidies, Huillard affirmed that EU and national stimulus packages have softened the downturn to an extent. However, he maintains that most of these stimulus packages have been insufficient to guarantee an environment of sustained revival of economic activity, and stresses that a number of measures announced have not been implemented as of yet. Overall, sentiment on future outlook for the industry remains weak. Some key contractors are forecasting a 20% drop in 2011 business. This current and future drop-off in infrastructure projects and its consequent reduction in cash flow, combined with the restricted avenues of asset finance, have left many companies looking to downsize their fleets and dispose of excess equipment before the values of their used goods potentially soften in response to the weak market conditions.
IronPlanet offers the solution for such companies, including a free equipment valuation. As a leading online auction for buying and selling used construction and agricultural equipment, IronPlanet offers a simple-to-use and efficient service. IronPlanet has a unique ability to reach out to a global audience of buyers. The appeal of such a marketplace is hard to overvalue. In heavily affected countries and regions, local-market sales are failing to bring in audiences, and so those who are trying to sell their used equipment need a non-traditional, innovative channel to reduce their stock. CEER Res Omnia SRL, based in Bologna, Italy, is a company that rents and sells used construction equipment, and is a market leader in the region. Due to the financial climate, CEER recently found itself with an excess of stock. This was a result of a marked reduction in the ability of many of the company’s customers to face their financial obligations, and CEER decided to rebuy or exchange many credits for machinery. Beatrice Bassi, Commercial Director of the company, was extremely pleased with the results of their bespoke IronPlanet ‘single-owner’ auction. “Had we attempted to sell these items without IronPlanet’s auction, they would have proved incredibly difficult to sell in Italy”, she said. IronPlanet’s international outreach lends sellers the enviable position of accessing buyers in markets where machines and equipment are still in demand, offering the construction sector a helping-hand in challenging times.
IronPlanet does not just offer an ideal solution to sellers in the troubled current conditions, but remains the best marketplace for buyers too. With its unique ‘IronClad’ Assurance symbol that appears next to the online profile of a product for sale, IronPlanet informs a customer that one of IronPlanet’s team of inspectors, each with many years of experience in dealing with heavy machinery behind them, has personally visited the item in question and conducted a fair and independent investigation. The findings of each inspection are able to be viewed free of charge before a customer bids on any piece of equipment. IronPlanet thus fosters an environment of transparency and honesty, allowing customers to buy with confidence, creating a feeling of trust between buyer and seller, and, crucially, maintaining its appeal to buyers worldwide.
Source: IronPlanet Press Release
