Construction Equipment
A Top U.S. Export Prospect for Panama
Market Estimates
(in US$ millions) |
2010 |
2011 |
2012est |
2013est |
Total Market Size |
$170 |
204 |
248 |
273 |
Total Local Production |
0 |
0 |
0 |
0 |
Total Exports |
0 |
0 |
0 |
0 |
Total Imports |
170 |
204 |
248 |
273 |
Imports from the U.S. |
105 |
126 |
156 |
171 |
The above statistics are unofficial estimates.
Overview
The construction sector in Panama continues to be leading the growth of the national economy. A number of projects such as the $5.2 billion expansion of the Panama Canal, the completion of Panama’s bay cleaning project, some mining projects, the metro project, and the construction of a number of tourism and housing projects will keep the demand strong for heavy equipment and construction machinery for at least the next few years. For an overview of the Government of Panama’s plans in public infrastructure – which in addition to the Canal might amount to $15 billion in investments over the next 5 years – please visit the following link: http://export.gov/panama/majorprojectsinpanama.
U.S. construction equipment is well received because of its perceived quality and competitive price. U.S. products in this sector enjoy a market share of over 50%. Major competitors are Japan, Korea, Sweden and England. There are no significant restrictions on imported products. With implementation of the U.S. Free Trade Agreement with Panama expected in the coming year, we expect U.S. construction equipment to continue to be attractive to Panamanian buyers.
Sub-Sector Best Prospects
Products offering the best opportunities are earth moving machinery, hydraulic excavators, off-road trucks, wheeled loaders, and cranes.
Opportunities
The expansion of the Panama Canal is generating a great demand for all kinds of construction equipment, especially excavators, off-road trucks, and all kind of earth moving equipment. The project entailed massive excavation on both ends of the Canal as well as the construction of the third set of locks capable of accommodating the Post-Panamax vessels. The $2 billion Metro project is well underway as well. And Canadian-based Inmet Mining has received environmental approval to go forward on a $6 billion copper mining investment, which will rival the Panama Canal’s foreign earnings when complete.
Web Resources
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For More Information
The U.S. Commercial Service in Panama can be contacted via e-mail at: Jeane.Zuniga@trade.gov;
Phone: 011-507-317-5392; or visit our website: http://www.export.gov/panama.
