Price sensitive market has made competition “much closer”
One of Oman’s biggest equipment distributors, General Engineering Services (Genserv), says that the market should see sharp growth by the second half of 2018.
General manager Ahmed Rashed added he expects the market to rise by somewhere between 10% and 15%.
“The state of the market has increased the amount of emphasis our customers are putting on price and makes the competition that much closer,” he explained. “By continuing to provide excellent aftermarket support, we have kept our customers’ costs down even further.”
Rashed said he anticipates a rise in infrastructure spending, as Oman’s government has made it a priority. Plans are already in the works for new roads, airports, dams, sewage works and hotels. Genserv is currently working with construction companies and planning for their equipment needs so that the entire market will be ready for the surge in activity.
Rashed claimed that recent successes and high praise from these companies were partly indebted to it securing the rights to China-based but Volvo-owned SDLG’s products in 2012.
Between 2012 and 2016, Genserv’s annual sales of SDLG machines increased tenfold. However, falling oil prices put a strain on Oman’s equipment market, causing sales to fall across all of its offered brands. The result was that customers emphasized the need for more affordable, value-option machines.
“It was a challenge to introduce a new brand into an established market, but we used our name and reputation to promote trust in SDLG,” he said. “Our customers expect us to provide quality brands and good parts and service, and so they said, ‘If it’s coming from Genserv, then it must be reliable.’ Once the machines were out in the field, their benefits spoke for themselves.”
Construction is the number one industry that Genserv is selling SDLG machines to in Oman, followed by quarry and aggregates, energy and oil, mining and government infrastructure. As a result, the majority of SDLG machines sold are wheel loaders, graders and rollers.
“Customers want to have confidence in the accessibility of spare parts, the availability of the service people, and in the speed at which we can rectify issues with the machines,” Ahmed Rashed explained. “Oman is 310,000 sq km with a population of 4.4 million. Our goal at Genserv is to be accessible to all customers within 24 hours. We have spent a lot of time ensuring that our aftermarket capabilities are first rate.”