Welcome to the 2025 CMEIG Annual General Meeting.

The past 18 months has been a challenging economic environment to say the least.  The total construction equipment market peaked in June of 2023 with 26,000 units sold for the 12 months to June 2023.  For the 12 months to February 2025, this total market was down to 20,000 units, a drop of 23%.

I am sure that you all have a view on the outlook for the total market for 2025 and beyond.  And I am sure that you are at least wishing for a strong total market.  What we do know is the following:

  1. Headline Engineering Construction work done increased 6.6% year-on-year to 30 September 2024, driven by growth in electricity and water infrastructure.
  2. Oxford Economics forecasts activity to grow by 6.6% in FY25.
  3. Government funded transport infrastructure continues to support growth. Although annual growth slowed to 5.3% over the 12 months to 30 September, the spend was $38.1 billion, the highest on record.  Oxford Economics forecasts activity to reach a cyclical peak of $40 billion in calendar Year 2025.
  4. The construction sector continues to struggle with labour shortages leading to higher wage costs.
  5. New housing starts are at the lowest level in 10 years. Demand is there, but the cost of supply is holding back affordability.
  6. GDP for 2024 ended at just +1%, but economists are forecasting a better result in 2025
  7. Interest rates dropped 0.25% last month, but indications from the RBA are that rate are likely to remain higher for longer than we had hoped for.
  8. Finally, there is the Trump factor. What that means for Australia and our industry is anyone’s guess.

So, with all of that, if you figure out where the market will be for 2025 and beyond, I welcome your forecasts.

CMEIG’s Working Groups are the engine room of what we do.

Engineering, safety and education often overlap in the tasks that the working groups undertake.

Examples in the past 12 months include:

Working with Regulators such as Queensland Electrical Safety Office, CMEWA(WA) and WorkSafe Victoria on projects such as:

  • Elimination of Live electrical Work and progressing the use of EV powered equipment.
  • Responding to the Proposed WorkSafe Guidance on Excavators used to Lift Suspended Loads
  • And the introduction of Safety Gauge Toolkits.

Additionally, CMEIG have maintained the well regarded Australian & International Standards for Earthmoving Machinery Advisory Notice and are presently finalising with Standards Australia AS20474-1, the Earthmoving Machinery safety standard.

Collectively these actions, ensure that CMEIG have a collaborative, proactive agenda promoting the safe use of mobile plant as well as addressing issues that may inhibit the (safe) use of earthmoving equipment.

Separately CMEIG’s Education Working Group are engaged with the Jobs Skills Council to develop the training needs and skills to support the introduction of EV and alternate power equipment.

CMEIG is represented at relevant industry forums such as at the AUSMASA job skills council with Matt Tosolini representing the industry on auto and Chris Davis on Mining.

The Statistics working group provides guidance and governance to our CMEIG industry Stats provider, PowerStats, and we have the founder of PowerStats, Dima Ivanov, presenting to all of you later today in the Industry forum.

Member engagement has been a focus through 2024.

Our quarterly Newsletter readership continues to increase and the CMEIG website has increased hits.

Supporting this are our working group forums and events such as the Member Forum following the AGM today.

Additionally, CMEIG’s LinkedIn Followers have increased 65% in the past 12 months.

We are only as good as the support that we receive, and I thank all of those who have contributed to posts, to Newsletter articles and in the various working groups.

And, if you haven’t already, Follow us on LinkedIn.

Finally, a few words about our outgoing CEO, David Birrell.  David has been the CEO of CMEIG for the past 12 years and was instrumental in leading our transition from a multi-State to a National structure taking us to where we are today, with a strong member base that represents well over 90% of the Construction and Mining industry suppliers of earthmoving equipment.  David has taken the lead in coordinating the activities of our Working Groups and most recently led the transition of our statistics provider to PowerStats.

On behalf of the Board and the wider membership, I want to publicly that David for his contribution to CMEIG over all these years.  David, we wish you well in your future endeavours including the extensive travel that I know you have planned for the coming years.  We do have a gift for you that we hope will ensure that you don’t forget about us and your time with CMEIG.

But before I hand over that gift, I do want to welcome our newly appointed CEO, Frank Gili.  Frank has extensive construction and mining equipment industry experience including as Executive General Manager at Drivetrain Power and Propulsion, and most recently as General Manager, Construction and Forestry at Hitachi Construction Machinery Australia.

Welcome Frank. The Board is pleased to have you join our organisation.

Thank you all for your continued support. Now David, your farewell gift.

Paul Torrington
CMEIG Chair