Argentina: A Low-Risk Approach in 2024
Despite the potential positive changes led by the newly elected Argentina government, Finning International acknowledges the challenging Q4 environment. In response, the company is taking a low-risk approach in Argentina for 2024, emphasizing financial prudence.
Chile: A Strong Outlook
Finning International’s outlook for Chile remains robust. The company attributes this strength to the growing global demand for copper, recent approvals of large-scale brownfield expansions, and increasing customer confidence in both brownfield and greenfield projects. Furthermore, Finning anticipates that mining activity will continue to thrive while maintaining stable infrastructure construction.
Western Canada: Thriving Operations in Key Sectors
In Western Canada, Finning International’s operations are flourishing, especially in the power systems sector. The company highlights the strong activity in the industrial and data center markets, positioning itself to meet the rising demand for electric power solutions. Additionally, Finning expects continued healthy demand from large contractors supporting mining operations.
As the world’s largest dealer of Caterpillar products, Finning International remains steadfast in its commitment to delivering exceptional industrial equipment and solutions to its valued customers.
Positive Outlook for Western Canada
The company expressed a positive outlook for Western Canada. Despite the slowdown in construction activities due to the completion of major pipelines, this creates additional capacity for heavy oil and liquefied natural gas transportation to end markets. As a result, Finning anticipates increased activity in the energy sector and production growth going forward. Mining and energy customers are also expected to boost spending levels, particularly for renewing, maintaining, and rebuilding aging fleets.
Strong Demand for Product Support in Oil Sands
Based on customer commitments and discussions, the company foresees strong demand for product support in the oil sands. This indicates the company’s confidence in the ongoing need for their services in this sector.
U.K. and Ireland Operations
Regarding operations in the U.K. and Ireland, the company acknowledges that with the completion of the HS2 project and low projected GDP growth in the U.K. for 2024, demand for new construction equipment is expected to remain soft. However, the company believes there will be a growing contribution from used equipment and power systems as they continue executing their strategy.
Despite these challenges, Finning expects continued healthy demand for primary and backup power generation in power systems. The product support business in the U.K. and Ireland is also expected to remain resilient.
