subscribe to ENR magazine subscribe
contact us
careers industry jobs
events events
Dodge Data & Analytics
ENR Logo
Web access will be provided
as part of your subscription.

For Brazil Equipment Buyers, Support Is King

Text size: A A
[ Page 1 of 2 ]
Photo courtesy Sobratema
This year's Brazil equipment show attracted 48,000 visitors.
----- Advertising -----

As new, construction-equipment brands—many of them Chinese—arrive in the Brazilian market, fleet owners here say they want superior after-sales support. This level of service, they add, will make the difference between the success or failure of newcomers in the country.

Vendors broadly discussed the issue at the M&T Expo 2012, held from May 29 to June 2 in São Paulo, Brazil. M&T Expo is the largest trade fair for construction machinery in Latin America. Produced every three years, this year's show attracted 48,000 visitors.

The trend marks a shift in thinking for buyers and sellers in Brazil. Rather than just buying a machine that satisfies the needs of a project, owners are becoming more savvy and seeking strong partners who will support them long after the ink on the deal is dry. As a result, equipment vendors are stepping up their game in this emerging market.

Sobratema, or the Brazilian Association of Technology for Equipment and Maintenance and the show's organizer, estimates there has been a 10% growth in equipment sales this year in Brazil, with 89,000 machines sold, stimulated by the region's economic expansion.

Mario Gasparri, CEO of CNH Construction Equipment, points out that the company's most significant growth in the recent years has taken place in Brazil and Latin America. The region already stands for about 25% of the company's global revenue.

Competition in the Brazilian market is fierce. Seven years ago, 11 manufacturers were operating in Brazil. Today, 30 brands are operating, many of them Chinese. Since the Chinese internal market shrunk by roughly 40%, those manufacturers have turned to other countries for sales.

"Users' demands and the very machines' technology have become more sophisticated," Gasparri says. The growing difference between brands is marked not by machine price or productivity but by "the technical support and spare parts offered by Brazilian plants all over the country."

In Brazil, CNH runs three industrial plants in the agriculture segment and three in the construction market, including a new plant in Montes Claros, part of an ongoing program on a $294.7-million (R$600 million) investment. A CNH plant in Contagem produces the Case and New Holland brands and serves as a platform for global exports, such as powered compactors.

Neil Hamilton, director of JCB Brazil, says the Brazilian market is already mature and looking for technology and after-sales services—two elements that newer, "opportunistic" brands find it difficult to offer. JCB is strengthening its structure by inaugurating a new, 32,000-sq-meter plant and parts warehouse in Sorocaba, where it has invested $100 million. JCB is giving the same level of detail to its dealer network "because after-sales is the key to build clients' loyalty," he adds.


[ Page 1 of 2 ]
----- Advertising -----
  Blogs: ENR Staff   Blogs: Other Voices  
Critical Path: ENR's editors and bloggers deliver their insights, opinions, cool-headed analysis and hot-headed rantings
Project Leads/Pulse

Gives readers a glimpse of who is planning and constructing some of the largest projects throughout the U.S. Much information for pulse is derived from McGraw-Hill Construction Dodge.

For more information on a project in Pulse that has a DR#, or for general information on Dodge products and services, please visit our Website at

Information is provided on construction projects in following stages in each issue of ENR: Planning, Contracts/Bids/Proposals and Bid/Proposal Dates.

View all Project Leads/Pulse »

 Reader Comments:

Sign in to Comment

To write a comment about this story, please sign in. If this is your first time commenting on this site, you will be required to fill out a brief registration form. Your public username will be the beginning of the email address that you enter into the form (everything before the @ symbol). Other than that, none of the information that you enter will be publically displayed.

We welcome comments from all points of view. Off-topic or abusive comments, however, will be removed at the editors’ discretion.