By Euan Youdale21 October 2013
The future is looking good for users and manufacturers in Latin America, but understanding the pitfalls and working around them is key to success. Euan Youdale reports
Infrastructure projects are leading the way in Latin America, with multi-billion US dollar road and rail schemes in progress. The 2014 World Cup and the 2016 Olympics, both taking place in Sao Paulo, Brazil are the subject of vast investment, while mining and oil and gas is booming in the likes of Peru, Chile and Argentina.
So, it seems, the rental sector in Latin America is heating up. Marcio Santos Cardoso, JLG Industries’ vice president of sales and market development for South America says, “The rental environment is very competitive. One of the key elements is logistics; setting up more branches in order to be closer to the customers. Brazil is a very large country and being able to reach the customers can be a challenge but we do see it growing.” Mr Cardoso adds, “Customers in Brazil are price-oriented. They are looking at who can give them more for their money.”
On the ground
In January this year, JLG Industries opened its newly renovated 11200 square metre parts and service distribution centre in Indaiatuba, Sao Paulo, Brazil. And in September Skyjack celebrated the first year in operation of its parts and service centre, also in Indaiatuba. Rafael Bazzarella, Skyjack territory manager for Latin America, explains, “This benefitted our customer by eliminating the traditional long lead times associated with getting product into the country. We also assembled a team with extensive market experience to provide the best service to our customers. Our key differential has been the Skyjack philosophy of immediate availability of parts and equipment.”