M&T Expo 2015 surprises, generates business and marks the beginning of a recovery in the market for construction and mining equipment

Consolidated as the largest and most important trade show for these segments in Latin America, M&T Expo 2015 gathered - from June 9th to 13th - 45,755 buyers of equipment in São Paulo

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M&T Expo 2015 – 9th International Exhibition and Congress of Construction Equipment and 7th International Exhibition and Congress of Mining Equipment, held last week at the São Paulo Expo Exhibition & Convention Center in the city of São Paulo and considered the largest and most important trade show for the segment of construction and mining equipment in Latin America, surprised everyone for its outstanding attendance by a highly qualified public - no less than 45,755 visitors frequented the show’s one hundred thousand square meters of exhibition area - and for the many business deals that were closed during the event.

The prospect of good business firmly establishes M&T Expo 2015 (held from June 9th to 13th) as a thermometer for the market of construction and mining equipment since, as we have seen in previous editions of the event, many buyers prefer to wait for the show to get to know the innovations that manufacturers have developed and, in addition, to negotiate the purchase of new equipment or to finalize deals that have already been initiated. In the 2009 edition, the fair had already become a watershed for the segment by promoting an expressive amount of business which helped to reverse the consequences of the economic crisis that affected many countries at that time.

The expressive amount of transactions at this year’s edition reinforces the role that M&T Expo plays as a meeting place for executives and professionals of the sector of construction and mining to make their purchasing decisions. “Based on reports collected from several exhibitors, we have concluded that sales activity prior to, during and following M&T Expo 2015 is expected to represent between 20% and 30% of the year’s total sales volume, which has historically been R$ 15 billion (US$ 5.1 Bn) but, on account of deceleration in the economy, should amount to some R$ 10 billion (US$ 3.4 Bn) this year,” states Afonso Mamede, president of Sobratema - the Brazilian Association of Technology for Construction and Mining.

“This year’s edition of M&T Expo was a success and ratifies the role of this trade show as an important generator of business for manufacturers and dealers of equipment, promoting competitiveness and the financial, economic and technological development of the entire sector of construction and mining,” underscores the president of Sobratema.

To Sobratema vice-president Mário Humberto Marques, the performance of the trade show goes hand in hand with the more favorable outlook for the sector. “Besides the fiscal adjustment measures announced by the country’s federal government in the last few weeks, which Finance Minister Joaquim Levy is in final stages of negotiating; the projects on which construction is underway all over the country; and the restructuring of funding by the Brazilian Development Bank (BNDES); national and international investors alike are avid for good business - and Brazil is an important alternative in the international market, as demonstrated by the visit of the Prime Minister of China who announced the country’s intention to invest US$ 50 billion in infrastructure works in Brazil. This moment of good news was further complemented by the Brazilian government’s announcement, on the very day of the opening of M&T Expo 2015, of a new package of highway, railway, seaport and airport concessions which will mean the allocation of R$ 198 billion (US$ 67.12 Bn) to infrastructure.”

For all these reasons and also on account of the “equating” of lines of financing with a debenture requirement set by the BNDES, in addition to the announcement of the “Plano Safra 2015/16” for agriculture, the directors of Sobratema expect the second half of 2015 to be much better than the first six months of the year. “We are confident that as early as the beginning of 2016, we will be emerging from the crisis,” Marques comments.

In turn, the show’s visiting public, which consisted of purchase decision-makers, professionals and technicians from companies linked to the sector, including contractors and mining companies, showed great interest in the options offered by over 1,000 brands on display at the São Paulo Expo venue in the city of São Paulo. These visitors got to know a great variety of equipment for earth moving, paving, hoisting of cargo, drilling of rock and mining, etc., in addition to engines, undercarriages, parts and components.

As regards the companies that participated in the event, M&T Expo 2015 tallied 478 exhibitors representing 25 countries: Argentina, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Germany, India, Italy, Luxembourg, Malaysia, the Netherlands, Paraguay, Peru, Portugal, Russia, Singapore, South Korea, Spain, Turkey, the United States, the United Kingdom and Uruguay. To them, in addition to business, M&T Expo 2015 also showed the reality of the Brazilian market for construction and mining equipment. “The technological development of the machines, the availability of equipment that is more economical, provides greater productivity and, at the same time, causes low environmental impact are good examples of what was on display at the show - things that modernize and increase the competitiveness of the sector’s companies,” Mamede emphasizes.

M&T Expo Congress

Parallel to M&T Expo 2015, the M&T Expo Congress took place between the 10th and 12th of June. With a complete program that included 19 seminars and special events, the Congress debated the main topics that serve as guides for the market for construction and mining equipment.

The M&T Expo Congress gathered a public of over 1,000 attendees (an estimated 800 participants were expected) consisting of business owners, engineers, specialists, technicians and professionals from construction and mining companies; manufacturers of equipment; equipment rental companies; suppliers of parts, engines, undercarriages and components; and providers of services.

To Eurimilson Daniel, vice-president of Sobratema, the expressive number of participants underscores the role M&T Expo plays in disseminating technical and market knowledge and in sharing experiences among the sector’s professionals. “It was a unique opportunity for them to obtain information on a variety of relevant subjects related to the sector, including trends and prospects for the sector, which will certainly serve as a basis for decision making in their respective companies,” he says.

The Congress had the direct participation of Sobratema in three of its events: the area of Market Intelligence released information from the Study of the Brazilian Market for Construction Equipment- Trends; Instituto Opus held its seminar “Movimentação de Cargas – a Realidade dos Profissionais” (Handling of Loads - the Reality of the Area’s Professionals); and a collaboration between Sobratema and Iopex - Institute for Operational Excellence Brazil enabled the realization of the 2nd International Summit for Operational Excellence & Lean Construction.

Besides Sobratema, the M&T Expo Congress gave several partner associations an opportunity to address pertinent subjects for the growth and development of the segment of construction and mining. At this edition, the participating sector associations were: ABCIC – Brazilian Association of Industrialized Concrete Construction; ABIMAQ - Brazilian Machinery Builders’ Association;ANALOC - Brazilian Association of Unions, Associations and Representatives of Equipment, Machine and Tool Rental Companies; CBT - Brazilian Tunnel Committee; and SINDIPESA – National Syndicate of Non-Divisible Oversized Load Transportation Companies.

The M&T Expo Congress also had the participation of the BNDES - Banco Nacional de Desenvolvimento Econômico e Social (Brazilian Development Bank) which announced the establishment of various lines of credit; and the DEC – Department of Engineering and Construction of the Brazilian Army; in addition to the following companies: Atlas Copco, Brasil Mineral, Caimex, JLG, Solinftec and ZF do Brasil.

Construction Expo 2016

M&T Expo 2015 also included a stand especially devoted to the announcement and promotion of the activities of Construction Expo 2016 - 3rd International Trade Show and Congress of Building & Infrastructure Construction, which will be held by Sobratema next year and whose scope is to present solutions in infrastructure for Brazil’s cities. At the stand, an intensive program of talks and presentations by renowned specialists in infrastructure was scheduled and, throughout the four days of the event, addressed themes such as: 
1- Sustainability focused on the generation of business in the sector of civil construction; 
2- Long term planning and urban infrastructures; 
3- Technical constraints/limitations, low investment capability; and 
4- The challenges faced by municipal managers and the legacy of the 2014 FIFA World Cup and the 2016 Summer Olympics.