The industry is considered as a major force driving the sale and rental activities in the Philippines excavator market. In the year 2015, Philippines managed to attract FDI worth USD 102.6 million in construction sector which is nearly 16 times increase compared to previous year. Growth in FDI is majorly boosted by passing PPP act attracting private investment in infrastructure and social sector.
With estimated 58.2% contribution to GDP coming from services sector, sale of real estate office space and infrastructure development is also expected to increase the demand for sale and rental of construction machinery including excavators, hence generating revenue for the market.
Backhoe technology is used in excavators specifically designed for digging and loading. In addition to this, the technology helps in maintaining the smaller size of machine, which helps in easy functioning. It gives better view of job executed by operator. These facts leads to construction workers buy the machine and generating revenue for market.
The excavators equipped with this technology in the Philippines excavator market are minimum in number as these excavators are used only for long distances either high up in the air for demolition and for pulling down the structures.
Absence of high rise buildings in the Philippines which needs to be demolished is the major factor which constrains the sale of long reach/long arm excavators.
Rental may only be used for ultra large machines like dragline excavators and power shovels as their use is restricted due to specific expertise and maintenance requirement.
Power shovel is sometimes preferred by people owing to its availability with back hoe and front shovel configuration. The equipments above 600 HP are considered as power shovel. Moreover, the features such as revolving device, crane with lifting arm and bucket, counterweight and controls further attracts the consumer towards these power shovel.
Development of new technologies, improved fuel economy and price competition will lower rental rates attracting more business as they will provide service through highly skilled personnel, low maintenance cost and much easier to operate and service.
Most major railway projects and expressway projects are concentrated in Manila region is another factor which has assisted growth in market share in excavator market sale
Hyundai heavy equipment is present in the Philippines in association with Good Morning International Corporation. The company dominated the Philippines excavators market
Philippines BPO industry is expected to grow at a rate between 15.0%-20.0% from 2016 to 2018. This will boost demand for houses, office space, and other infrastructure and consumption of goods ultimately leading to use of rental excavators as majority of players in these projects are SME’s.
Over the years, economy of Philippines is growing supported by positive growth in construction, which has also pushed the rental of excavators in the Philippines market. Excavators are number one construction equipment and will continue its prominence as they develop into multifunctional applications enhancing connectivity, monitoring and emission reduction.