2026 has certainly started at pace and we had hoped for economic stability to lift confidence. While several leading economists were forecasting 4 to 5% growth in equipment sales this year, the escalating conflict in the Middle East represents a significant external shock for the construction sector. The impacts are being felt primarily through fuel‑driven cost escalation, ongoing supply‑chain disruption and softer market confidence. The overall impact will depend on the duration and intensity of the conflict, however heightened volatility is likely to persist in the near term.
Industry outlook
In the first quarter of 2026, both construction and mining equipment sales were significantly higher than the same period last year, delivering 6% growth. Construction equipment sales increased by 6%, while mining equipment rose by 16%. Excavator sales were particularly strong, growing by 17% in construction and 5% in mining. This was partly offset by softer performance in other product categories, with combined sales of wheel loaders, road rollers, motor graders and dozers down 13% for the quarter. These mixed results highlight both the underlying resilience in key segments and the continued uncertainty across broader equipment markets.
Driving innovation and skills
CMEIG’s working groups continue to play a pivotal role in shaping the future of the industry. The Engineering Working Group is progressing critical work on electrification, safety standards and maintaining a strong industry voice as SafeWork Australia reviews requirements related to lifting with excavators. In parallel, the Education and Training Group continues to collaborate with members, mining operators, training providers, and other key associations to support the upskilling of technicians for electrified and autonomous machinery.
CMEIG initiatives
CMEIG is proud to be partnering with Tradeswomen Australia to provide financial support for apprentices, offering scholarships for three female and three male apprentices in 2026. Such initiatives play an important role in attracting new entrants to the industry while also improving retention outcomes. Scholarship applications close on 1 May, and we encourage apprentices from CMEIG member organisations to apply.
CMEIG is also supporting the Prostate Cancer Council in 2026, working alongside Rod Hale to raise awareness of prostate cancer and the importance of early detection through regular blood testing. Following Rod’s presentation at the 2025 CMEIG Member Forum, several members invited him to speak directly to their employees. In one case, this directly led to early diagnosis and life‑saving treatment.
Rod continues to self‑fund his travel while delivering these presentations and CMEIG is seeking member support to assist with these costs. CMEIG will also contribute to supporting this important work. With multiple presentations scheduled for 2026, Rod welcomes further opportunities to engage with members.
Best regards,
Frank Gili
CEO, CMEIG