Smopyc 2014 – Preview of Activities and Diagnosis of the Sector

The preparations are well underway for the SMOPYC 2014, which is to take place at the Zaragoza Exhibition Center from 1st to 5th April.
The main associations in the sector are to attend the show, completing the agenda of parallel activities, including the organization of reverse trade missions from international markets such as the United Arab Emirates, India, Mexico, the Russian Federation, Belarus, Turkey and Iran, among others.

As in previous years, SMOPYC 2014 has the support of the main associations and companies from the sector, helping to ensure the success of this year’s event through their active participation. The associations are putting the finishing touches to their programs of meetings and assemblies, technical conferences or product presentations, all of which are to form the agenda of alternative activities at the Trade Fair.
The organization of reverse trade missions with international buyers visiting the trade fair, which is traditionally organized by ANMOPYC, the Spanish Manufacturer’s Association Construction, Public Works and Mining Machinery, is to play a significant role in this agenda.
Among the associations to have confirmed their full cooperation with SMOPYC are all those forming part of the Construction Trade Federation (ADRP, AEDED, AEDT, AETAC, ANEIP, ARPHO and ECSYS) and those belonging to Confalq (ANAPAT, ASEAMAQ and FANAGRUMAC). The Show also has the support of IPAF, ANAGRUAL; AEXAR, SEOPAN and ANMOPYC.
Both the event’s organization and the different associations are working towards the same objective: to help boost the sector during these difficult times and to help companies implement or improve their internationalization strategies.

SMOPYC, the gateway to exporting
Reverse trade missions are an instrument that strengthens the internationalization of SMOPYC, an event that has continued to grow over recent years to become one of the most important trade fairs in its sector in Europe.
The main objective of these reverse trade missions organized by ANMOPYC is to promote the potential of Spanish Construction, Public Works and Mining machinery abroad and to offer guests the opportunity to hold interviews with Spanish manufacturers from the sector, learn about their products and visit SMOPYC. The guest companies are from countries in which the markets offer a high level of commercial opportunities within the sector. In all cases, they either correspond to countries with a solid track record in the sector or countries worthy of attention, not only for their size but also for their stability and potential.
As sources from ANMOPYC have confirmed, distribution companies, importers, representatives and certain construction companies are to be invited to join these reverse trade missions, primarily from Mexico, Chile, Colombia, Peru, Panama, Uruguay, Guatemala, Saudi Arabia, Qatar, the United Arab Emirates, Lebanon, Jordan, Bahrain, Oman, Morocco, Algeria, Brazil, Ecuador, Indonesia, Malaysia, the Russian Federation, Belarus, Turkey and Iran.
Open markets for Spanish companies
The most interesting markets from a Spanish business viewpoint are those undergoing significant development in the sectors of interest, as well as those in which the local production does not have the same capacity and experience as that offered by Spanish companies, as may be the case in Algeria, Colombia, Chile or Russia.
To this end, the Managing Director of ANMOPYC, Jorge Cuartero, explained: “Due to their cultural proximity, the most receptive markets have always been those in South America. However, we have seen that Spanish products are very well accepted in Middle Eastern countries, despite the strong competition from Turkish and Asian companies, and these are priority markets for Spanish companies. A great many infrastructure and building projects are underway in countries such as Saudi Arabia, Qatar and the United Arab Emirates. Don’t forget that Qatar is to host the World Cup 2022 and barely a month ago Dubai was chosen as the site for World Expo 2020”.
Exports account for 80% of turnover for the companies in the sector
According to data from ANMOPYC, exports currently account for around 80% of turnover for companies in the sector. Last year, over 1 billion Euros were invoiced in products sold outside Spain. The forecast for forthcoming years show a similar panorama and exports are to remain at between 80% and 90% of our companies’ turnover.
According to different forecasts, recovery of European construction in 2014 will not be overwhelming but no more relapses are expected. In fact, slow European recovery will be seen and this will be the first year in which the recession will be down to single figures in terms of production in the Spanish construction sector (-6.5%).
The European construction sector remains cautious with regards to indicators of improvement foreseen for 2014, fearful that this could be yet another temporary phenomenon such as that recorded in 2010 and 2011. Part of this skepticism is due to the data recorded in 2013 (-3.0%). In view of this, growth expectations are set at 0.9% for 2014 and 1.8% for 2015, with a tendency to speed up in 2016.

Competitiveness as a recovery factor
Despite the fact that the diagnosis for the sector remains not overly favorable, some signs are emerging that the recovery has started, all be it slowly. It seems clear that increasing competitiveness and exporting is essential in paving the way for leaving the financial crisis behind. Together with this, work in innovation will be essential for ensuring sustained increases in productivity. The sector is also waiting for a general economic recovery, signs of which are already becoming clear both nationally and at European level.

Stoian Markov, the chairman of the SMOPYC 2014 Organizing Committee, said as such: “We believe that this “atypical” cycle has already passed and that the sector will adapt to the levels of improvement of the general economy. In fact, the first signs of movement in this direction have already been seen: the Spanish economy has become more competitive, which in my opinion is essential on the road to recovery”.
The challenge of internationalization
Internationalization is a very important stage in the life of any company wishing to grow, as it ensures greater resistance and strength to sudden changes in national and regional economies. It is therefore also very important to handle the process correctly, as entering markets on the wrong footing could close doors for a very long time. In his work as director for Southern Europe for the company Hidromek, Stoian Markov has experienced and is aware of the internationalization process from start to finish. He recommends the following to ensure success:

• Select the regions for internationalization by priority.
• Be extremely familiar with the requirements of clients, regional regulations and economic conditions
• Select partners or strategic collaborators carefully.
• Ensure the after-sales service correctly
• Make sure the workforce is mentally and professionally prepared to take the leap.
• Promote the brand and the products to potential clients.
• SMOPYC 2014, drive and support for the sector.

 
SMOPYC is internationally acclaimed and has been and will remain one of the most important meetings in the sector. However, this year it is to be an even more interesting meeting point, as the PILOT forum and the LOGIS exhibition are to be held together to form the star attraction, encouraging further international interest. It is, therefore, a good opportunity to promote and encourage the sector. It is also an unmissable event for those wishing to strengthen their position in the market, or companies seeking to internationalize.
“I wanted to underline the fact that this year’s trade fair is very competitive and has been significantly improved with regards to its organization: new entrances, turnkey showcases and other improvements will make the trade fair easier for exhibitors and visitors. For the sector, it is the right time to take off again” says Stoian Markov.
Source: Smopyc