Compliance to the Public-Private-Partnerships (PPPs) legislative decree, the works for taxes law, machinery regulations, law for promotion of the energy efficiency and other regulatory norms along with improved awareness about latest technological advancements using machineries were the key factors driving the demand for construction equipment in Peru.
The report titled “Peru Construction Equipment Market Outlook to 2021 -Technological Advancements and Well Equipped Machineries to Drive Market Growth” by Ken Research suggested a CAGR of 5.1% in revenue of total construction equipment in Peru for the projected period 2017-2021.
Construction and mining sector are major consumers of construction equipment and any positive development in these sectors directly promotes the rental and sales of construction equipment. Peru has an outgrowing demand for both public and private infrastructure which includes roads, telecommunication, ports, airports, water and sewage, health and education. The growth underway is due to implementation of many major projects in these sectors of economy. Also, the continuation of mining and energy projects will further boost the Construction Equipment Market. Peru’s rapid economic growth made visible a striking infrastructure gap in the education sector. To address this infrastructure gap, the Peruvian government allocated USD 1.6 billion to investment projects in 2016, which includes building high performance schools and executing projects associated with the 2019 Pan-American games. The growth in construction industry boosts sale of construction equipment, where Peru market registered a growth of 12.0% in 2016.
In recent decade, the government of Peru has launched various projects to improve the neglected infrastructure sector and to ensure that its economy continues to grow. Peru on account of availability of natural resources and supportive legal and tax regime has backed the construction and mining industry. The government passed Public-Private-Partnerships (PPPs) legislative decree which helped in the promotion of private investment process in infrastructure as well as social sector, leading to many foreign firms to invest in Peru construction equipment market.
Highly developed technology, growth of economy and rise in per capita income of local people and expats has leveraged the buying capacity of people. A significant proportion of investment in the country has been intended towards improving the quality of infrastructure, transport, education, healthcare, potable water and sewage.
Ankur Gupta, Head Marketing & Communications