Winter 2026 newsletter – CEO address
Over recent months, the Australian economy has demonstrated resilience despite ongoing global uncertainty, and for the mining, quarrying, civil construction and earthmoving sectors, operating conditions have generally remained positive, underpinned by strong resource exports, a significant infrastructure investment pipeline and continued funding for energy transition projects.
While economic activity has continued to grow steadily, contractors and equipment end users continue to face considerable cost pressures. Labour, fuel, insurance and operating costs remain elevated, with many businesses reporting significant increases in overheads and workforce expenses. Diesel prices, in particular, have remained above historical averages, directly affecting the cost of earthmoving, haulage and mining operations. These factors have tempered business confidence and influenced investment decisions, particularly in relation to new equipment purchases.
Against this backdrop, construction and mining equipment sales in the first half of 2026 delivered modest growth of 2% compared with the same period last year. While this represents a positive result, it has fallen short of the 4-5% full-year growth forecast by several leading economists at the beginning of the year.
The construction equipment sector recorded growth of 3%, with excavator sales increasing by 4%. This improvement was partially offset by weaker demand for road construction equipment, with sales of motor graders, road rollers and backhoe loaders declining by 7% compared with 2025. Wheel loader sales remained broadly in line with last year’s levels.
Following several years of strong growth, the mining equipment sector eased, with sales declining by 10%. While this reflects some softening in demand, it should be viewed in the context of the exceptionally strong sales performance achieved in recent years.
Looking ahead, the outlook for our industry remains positive. Continued investment in mining projects, critical minerals, infrastructure development and energy transition initiatives is expected to sustain demand for equipment and services. While cost pressures, workforce shortages and broader economic uncertainty will continue to present challenges, our sector remains well positioned to support Australia’s growth and productivity agenda.
Best regards,
Frank Gili
CEO, CMEIG