Anirban Bagchi Posted on October 21, 2020 in MEConstruction News that Euro Auctions reports rise in lot prices, bidders and online bids at September Dubai sale. What is the meaning of such a movement? Anirban Bagchi explains.
Internet buyers double in number as average lot prices go up 63% while first time bidders grow exponentially
Euro Auctions has reported a year-on-year increase of 63% in average lot prices at its September sale in Dubai while first-time bidder registrations rose by nearly 300%, with 20% of the new bidders placing successful winning bids.
The global machinery auctioneers said the results prove that there “is an appetite for good used equipment in the region” and that Euro Auctions is “fast becoming the auction of choice for buyers and sellers in the Middle East for the disposal of stock to a true international audience”.
According to Euro Auctions the Dubai sale on September 28th attracted increased number of bidders, doubling the number of internet buyers, and also increasing the number of UAE vendors. The one-day sale resulted in 33% of all bids being transacted online proving the success of the marketing reach for this sale.
Bidders for the sale came from 65 countries, of which, 21 countries successfully bought on the day. Online bids came from 19 countries around the globe, with the top bidding countries being the UAE, Saudi Arabia, the Netherlands, the UK and Africa countries as a whole.
Derek Bleakly, general manager of Euro Auctions, Dubai, said: “Euro Auctions has been working hard with consignors across the Middle East over the last three years to build awareness and trust, demonstrating that our auctions are the place to bring good equipment, which in the Gulf, is in high demand. Plant and machinery auctions are no longer seen as the place to dump old, poor quality, low-spec machinery. Quite the reverse in fact, with many rental companies sending entire fleets of good, well-maintained two- to three-year-old machines to auction, making ideal purchases for dealers, contractors, and civil engineering companies.
“In last 12 months since mid-2019, there has been a marked uptake in the Middle East market for good machinery and equipment. Contractors and rental companies in the Middle East have been buying relatively low levels of new machines for the last 4-5 years and, as a result, stocks of plant are aging. Not buying through dealerships, buyers have turned to auctions for good late-year machines as well as new unused stock.”
Euro Auctions added that now with Covid-19 affecting the global economy, the used equipment market could well boom in the next 12 months. The auctioneer projected that with major OEMs pausing production globally, as happened in 2008, it is likely that when demand increases, OEMs will be unable to accelerate production, fuelling a demand for good, late, low-hours equipment. Euro Auctions has several other sale events around the world for the remainder of this year, including another in Dubai on December 14th.
The sponge-inspired lattice resisted buckling longer than any other structure.
The next generation of skyscrapers could be, well, spongey. Researchers at Harvard University’s Wyss Institute for Biologically Inspired Engineering and John A. Paulson School of Engineering and Applied Sciences say a lattice reinforced with diagonals, inspired by the structures built by sponges, could mean lighter, but stronger skyscrapers and bridges.
Sponges are wild. They’re not just alive—they’re resilient predators that reproduce sexually, despite having no organs or tissues or even a traditional “inside” of their body structures. In a way, they’re living structures already, and their sturdiness is what helps them survive.
“The predominantly deep-sea hexactinellid sponges are known for their ability to construct remarkably complex skeletons from amorphous hydrated silica. The skeletal system of one such species of sponge, Euplectella aspergillum, consists of a square-grid-like architecture overlaid with a double set of diagonal bracings, creating a chequerboard-like pattern of open and closed cells.”
Beginning with this structure as a guide, the scientists built a 3D physics model and put the sponge and a selection of other traditional building types through the ringer. “[U]sing a combination of finite element simulations and mechanical tests on 3D-printed specimens of different lattice geometries, we show that the sponge’s diagonal reinforcement strategy achieves the highest buckling resistance for a given amount of material,” they conclude.
Existing things use both square and diagonal lattices depending on the item. If you’ve owned enough plastic milk crates in your life, you’ve likely seen both structures just in those designs.ADVERTISEMENT – CONTINUE READING BELOWhttps://dc349419a6f5a80cdd0dfe662fdc99d4.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.htmlhttps://dc349419a6f5a80cdd0dfe662fdc99d4.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html
Composite rendering that transitions from a glassy sponge skeleton on the left to a welded rebar-based lattice on the right. PETER ALLEN, RYAN ALLEN, AND JAMES C. WEAVER/HARVARD SEAS
But the sponge-inspired lattice is double layered, resulting in something more like a basket weave you may have seen on the seat of a wooden chair. By testing the structural strength of the sponge, researchers have combined the best of building with the best of weaving, in a way.
The most important takeaway, they say, could be to build the same strength and size of building, but with less building materials. They could also just broadly improve the materials used for less optimal designs, especially in infrastructure like bridges. The scientists explain:
“Our results demonstrate that lessons learned from the study of sponge skeletal systems can be exploited for the realization of square lattice geometries that are geometrically optimized to avoid global structural buckling, with implications for improved material use in modern infrastructural applications.”
Posted in Construction, on July 5, 2020, Further cuts to MENA construction sector expected for 2020 as the region appearing to be hit with a triple whammy, per GlobalData, would sound in our opinion as a realistic assessment at this conjecture of the construction industry in the MENA.
The Middle East and North Africa (MENA) construction sector is expected to be bit by the triple whammy of lower oil production, low oil prices and contracting non-oil sectors. Leading data and analytics company GlobalData has further cut its construction output growth forecast for the region for 2020 to -2.4%, down from the previous forecast of 1.4%, in light of continued spread of COVID-19.
Yasmine Ghozzi, Economist at GlobalData, comments: “Construction activity for the remainder of 2020 is set to see poor performance. While there is usually weak construction activity in the holy month of Ramadan and during the hot summer months of June, July and August, this is usually compensated by strong performance at the beginning and end of the year. However, this will not be the case this year due to the strict lockdown policies that extended until the end of May.
“The sector is expected to face headwinds in 2021 with a slow recovery, but the pace of this will be uneven across countries in the region. Fiscal deficits and public debt levels will be substantially higher in 2021. Fiscal consolidation will hinder non-oil growth across the region, where governments still play a considerable role in spurring domestic demand.
“In addition, public investment is likely to be moderate, which will translate into fewer prospects for private sector businesses to grow – especially within sectors such as infrastructure. Expected increase in taxes, selected subsidy cuts and the introduction of several public sector service charges will influence households’ purchasing power, having a knock-on effect on future commercial investments.”
Amid the worsening situation with regards to the COVID-19 outbreak and the decline in oil prices, GlobalData has further cut its forecast for construction output growth in Saudi Arabia to -1.8% from its previous forecast of 2.9% in 2020 and expects a recovery in the sector of 3.3% in 2021. The government’s decision to host limited annual ten-day Hajj entails a possible loss of estimated revenue at more than US$10bn, adding more pressure on the Kingdom’s economy.
Ghozzi adds: “GlobalData has estimated a contraction of 2.1% in construction output growth in the UAE but expects a rebound in 2021 of 3.1%. In one of the largest global energy infrastructure transactions, Abu Dhabi National Oil Company (ADNOC) raised US$10bn by leasing a 49% stake in its gas pipelines for 20 years. This landmark deal is important especially during the prevailing industry downturn in order to keep profitability.
“GlobalData has also cut further the growth rates for Qatar, Kuwait and Oman in 2020 to -3.4%, -7.8% and -8.1%, respectively. Qatar’s economy this year will be affected by decline in tourist arrivals, low consumer spending and low oil prices. Nevertheless, strong fiscal stimulus and spending on infrastructure projects should provide support.
“The negative outlook for Kuwait is weighed down by lower oil prices and the prospect of a higher fiscal deficit, possibly compromising the government’s capital spending on construction and infrastructure. Business unfriendliness constitutes a barrier to reforms in the Kuwaiti economy; the extensions in tenders’ deadlines compounded by an inflexible bureaucratic procurement setup that slows decision-making will delay progress for several Kuwaiti megaprojects.”
Egypt’s construction sector is set to continue performing well despite poor performance of the non-oil sector in April. GlobalData expects construction to grow at 7.7% in 2020, slowing from 9.5% in 2019, given a short-term slow down due to the pandemic and 8.9% in 2021, and to continue maintaining a positive trend throughout the forecast period. In the Arab Maghreb, GlobalData has further cut forecasts for construction growth in Tunisia, Morocco and Algeria to -3%, -2.1%, and -2.5%, respectively, in 2020 and 0.7%, 1.2% and 1.9%, respectively, in 2021.
GlobalData has a bleak view of Iran’s construction sector throughout the forecast period. A slowdown in economic activity caused by the virus outbreak and a possible wave of further US sanctions (in the event Trump wins a second term) will continue to wreak havoc on its economy, and drastically affecting construction activities.
GlobalData shares its forecasts for construction industries across the world in the midst of the coronavirus pandemic.
The revised and further-cut construction output growth forecast for the Middle East and North Africa (MENA) region for the year 2020 is -1.1%, down from the previous projection of -0.8% (as of mid-April) and 4.6% (Q4 2019 update) due to the soaring COVID-19 cases in the region, and the subsequent curfews and lockdown measures, according to GlobalData, a leading data and analytics company.
Yasmine Ghozzi, Economist at GlobalData, says: “The slump in oil prices will dent the sector’s growth. GlobalData expects cutbacks in spending and, in particular, cuts to capital spending on infrastructure, especially for oil and gas dependent countries given that investment plans were set on assumptions for oil at US$50 – US$80 per barrel. The IMF currently predicts that GDP growth in the MENA region will fall to – 3.3% in 2020 because of its exposure to lower oil prices and the extensive disruption in travel and tourism.”
Governments across the MENA region offered direct support to boost activity in construction and infrastructure. In the case of Egypt, for example, the government guided construction companies operating in public projects are set to resume work in full capacity by early April, following a period of two weeks of reduced business.
For Saudi Arabia, the biggest construction market in the region, the country’s finance minister announced plans to make deep cuts to public spending, so any further stimulus to the construction sector would rely on the amount of reserves the government is willing to draw upon, given the limit that lower oil prices have put on government revenues.
It remains to be seen whether governments in the region will lend direct support to companies facing acute financial pressure in the sector.
Ghozzi concludes: “In addition, construction, real estate, and oil and gas sectors are among the most exposed to the business risks created by COVID-19. Force majeure clauses in contracts are being more widely used by firms needing to scale back or rearrange their business plans amid the pandemic. The issue came under the spotlight when the Iraqi government announced the pandemic as an event of force majeure for all projects and contracts. Although construction sites are generally exempted from the lockdowns imposed in many countries in the MENA region, there is an expectation that legal claims, especially from contractors, will be filed citing the crisis as a justifiable reason for failure to deliver work on time.”
Construction is the well-known process for men of building houses with some unskilled labours. Thank you for reading the misconcepted sentence. Yes, It’s often seen with an eye of simplicity and frivolous job, which isn’t. We are in much of society’s mindset that a myth is more nurtured than a fact.
Call me old fashioned, but I believe there’s something to be said for doing good, honest work. Construction is sort of the unsung hero of our culture; vital to our infrastructure. Skilled tradesmen build the places we work in, the homes we live and play in, the roads we commute on, and more. Economy’s strength is tightly linked to the construction industry keeping country to move forward. A construction site is moreover different from a person sitting in front of laptop obeying a 9 to 5 cubicle job; it’s an area of daily new challenges to pass on to the next level. It requires a diversity of skills employing everyone deserving to choose as a career.
This is a technical journey of any structure or thoughts right from the foundation to finishing and external works. In building construction, we study how the civil works are carried out in the field after they have been planned by an architect and structurally designed by an engineer. A toddler whenever points his finger towards the swinging tower crane enjoying like the dance of a robot, it’s the duty of the project team to work successfully building block by block over heights.
As we are talking about the heights, so let me take you to the most heighted man-made structure! No required nominees, it’s Burj Khalifa, Dubai (or you can even argue with one of the most famous buildings because 830 metres is really a good number).
Heard about World One? A structure finding it’s place to be the tallest residential skyscraper, yet under construction of Lodha group, Mumbai.
I’ve my stomach full with all these heights as you will mostly get in my next blog; until then let’s see some amazing constructions. The great man-made river project in Libya has listed as the biggest irrigation project in the world. Underneath of the Sahara Desert, it consists of 2800 pipes carrying 6.5 million cubic metres of freshwater every day.
The most beautiful building in Jakarta, Regatta Hotel complex was designed by Atelier Enam. The project’s centrepiece is the aerodynamic hotel itself that overlooks the Java sea. Now wondered that struggle to be in top 10 beautiful buildings!
But, who knew that continuous endless building of structures would permit to cease for a no while. Because of the nature of his projects, all industries and companies are surged down to a force majeure. The workers are avoiding the work at construction sites due to fear of coronavirus infection. Threatening situations are discovered due to this pandemic endangering future of the construction world.
People are particularly trying to reach out finding alternatives as I mentioned in my previous blog (A virus outside the computer). Also, many cities have adopted a definition of essential construction that allows any work necessary to build, operate, maintain or manufacture essential infrastructure without limitation construction or the constructions required in response to this public health emergency, hospital constructions, etc.
According to the industry body, there are around 20,000 ongoing projects across the country and construction work is being undertaken in around 18,000 of them i.e. involvement of workforce of about 8.5 million in construction work alone! These numbers are breath-taking when health concerns. The scenario implies that the construction work will be slow, pushing costs upward given the interest and debt servicing needed for that extra period. Definitely it will have its own consequences but would be better far than doing nothing. Hoping the same as everyone to defeat this monster, hiding myself from the fact that I’m bored writing about it ; )
Prior to the coronavirus (COVID-19) outbreak, leading data and analytics company GlobalData had predicted that there would be an acceleration in the pace of growth in the global construction industry, but given the severe disruption in China and other leading economies worldwide following the outbreak, the forecast for growth in 2020 has now been revised down to 0.5% (from 3.1 per cent previously).
The current forecast assumes that the outbreak is contained across all major markets by the end of the second quarter, following which, conditions would allow for a return to normalcy in terms of economic activity and freedom of movement in the second half of the year. However, there will be a lingering and potentially heavy impact on private investment owing to the financial toll that was inflicted upon businesses and investors across a wide range of sectors, stated the top analytics company in its ‘Global Construction Outlook to 2024 – COVID-19 Impact’ report.
While growth in 2021 will be marginally higher than previously expected owing to the projected rebound (and high year-on-year growth rate) in the first half of next year, in the event that the spread of the virus continues into the second half of 2020, further downward revisions to the growth outlook are likely, it added.
Danny Richards, the lead economist at GlobalData, said:
“With extreme quarantine measures including lockdowns of entire countries as well as international travel restrictions being imposed across many major economies, the supply shock is expected to dampen economic activity.”
“The direct impact on construction has been the halting of work with labour unable to get to sites or because of disruption in the delivery of key materials and equipment,” he noted.
“More generally, the construction industry will be heavily affected by the expected widespread disruption to economic activity and a likely drop in investment, with planned projects being delayed or cancelled,” he added.
GlobalData foresees particular struggles in the commercial and industrial sectors; businesses in these sectors are most at risk from the severe drop in economic activity, domestically and globally, and their immediate priorities will be on staying afloat and rebuilding their core operations, rather than expanding and investing in new premises or capacity.
The residential sector also will struggle as economic activity weakens and unemployment rises, despite low-interest rates and direct government support, revealed Richards. “There is a high risk that a considerable proportion of the early stage projects in these sectors will be cancelled or at least pushed back, with few new projects starting in the second quarter of 2020 as firms review their expansion plans,” he added.
According to Richards, the governments and public authorities would likely be aiming to advance spending on infrastructure projects as soon as normality returns so as to reinvigorate the industry.
“With interest rates falling to record lows, borrowing costs will be at a minimum, but the success of government efforts to spend heavily on infrastructure will be dependent in part on their current financial standing,” he explained.
“Moreover, with most governments prioritizing cash hand-outs, particularly to the economically weaker segment, their capability to invest in the infrastructure segment is likely to be constrained, especially in countries with high debts,” he added.
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