Equipment procurement costs rising for construction industry

The recently released Zimbabwe National Statistics Agency (Zimstat) Civil Engineering Plant Price Index for March 2022 shows heavy equipment shows pricing creeping up at consistent rate.

The month-on-month Civil Engineering Plant Price Index (CEPPI) rate of change reached 4.5 percent in March 2022. gaining 2.2 points on the February 2022 rate of 2.3 percent.

According to Zimstat: “The group of products that have contributed to the rise in the index in March 2022 were Loaders, Graders, Excavators, Dozers, Rollers, Drive Train, Compactors, Ground Engaging Tools, Tractor- Loader-Backhoes, Undercarriage, Others, Engine and General Usage.”

Although no figures of are given in the report, many players in the construction industry of Zimbabwe are on equipment acquisition drive to meet demand. A visit to any site of reputable construction companies will show a wide array of new equipment.

While work on the roads is the major singe activity, there are many other construction projects going on. Corporates putting up new headquarters, expansion of existing footprints and facilities, new businesses coming up; there are many indicators of confidence in an economy on the rebound.

With all equipment being imported, it is hoped that the inflation rates around the world do not spell a sharp rise which will naturally mean a steep rise in construction costs.