Well, 2020 continues to be a memorable year! Covid-19 dominates both immediate conditions and the market outlook.

In mining, six-year high iron ore prices and record volumes are reflective of continued robust activity across the sector. In iron ore, supply disruptions ex Brazil have further underpinned the Australian market.

Construction has been more of a rollercoaster. Demand early in the year was affected by the outbreak of Covid-19, which initially stopped sales in their tracks, but the Federal Government’s $150,000 tax write off on new and used equipment, the various JobKeeper, JobSeeker etc. programs, and the projections of infrastructure as a key component of fiscal stimulus have all contributed to support the market.

The Federal Budget was positive for the industry with key outtakes being:

Tax Cuts

  • Personal Tax Cuts

Infrastructure

  • $14 billion in new and accelerated infrastructure projects over the next four years.
  • $3 billion toward shovel ready projects.

Business Cost Deductions

  • Business with < $5 billion turnover will be able to deduct the full cost of capital assets purchased after budget night and first used or installed by June 2022.
  • Small and medium businesses will also be able to apply `full expensing’ to second-hand assets for assets less than $150,000.

Training

  • Expanded training subsidies for new apprentices.

The Stage 4 restrictions and the resultant impediments to operating in Victoria have been the principle factor overhanging the market. The recent easing of restrictions in Victoria are welcome.

Australian sales through to the end of September were 3.5% per cent up relative to the corresponding period in 2019. Sales in Asia by contrast are reportedly down 18% for the same period.

More broadly CMEIG has been engaged across the sector in a number of ways including with:

  • The Federal Department of Agriculture, Water and Environment (DAWE) on the analysis of Non-Road Diesel Emissions.
  • Standards Australia where we have had recent approval to direct text adoption of ISO TC127 mirrored standards. This will have a major benefit to members in simplifying compliance of equipment.

The Australian Standards and ISO Equivalent Comparison sheet further assists members in navigating through market specifications.

Other current areas of activity include:

  • Steering requirements of wheeled machines
  • E-Stop functionality
  • Working at heights
  • Quick hitch functionality
  • Off highway rims and wheels

I encourage you to check out www.cmeig.com.au for more details on the industry leading work being done by the CMEIG Engineering Working Group.

Ranil Tennakoon

CMEIG