The Irony of Heavy Machinery Business: High Demand, Lack Supply

By Editorial Team 12/08/2022
heavy equipment
Summary

Heavy equipment manufacturers expect the demand to double. United Tractors president director Frans Kesuma revealed the heavy equipment demand from the coal and nickel mining industries is rising. However, the company is struggling to meet the demand due to the lack of raw material supplies. "We have discussed with the principal to increase the allocation," Frans said Wednesday.

The sales of Komatsu brand heavy machinery went up by 111 percent in the first half of this year to 2,873 units. Meanwhile, UD Trucks' sales decreased from 289 to 258 units, not because of the lack of demand but due to the limited supply from the principal. "There is a supply problem for certain components that makes UD Trucks and Scania's supplies not as good as last year," he said.

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