Experiences, Results and Learning from the 1st. AVMP- Expo Construcción-CVC Agreed Sale on March 2007 Universidad Metropolitana Caracas Venezuela.-
On, March 2007, during the Expo-Construcción event, sponsored by the CVC; the Heavy Duty Machinery Association of Venezuela, considering the ambit purpose of assisting the demand that the country presently requires of Machinery and Construction Equipment, there was an agreement with international suppliers (Caterpillar, VOLVO, John Deere, HEPCO, KOMATSU, CASE, and others), national distributors, customs agents and financial entities to provide through a Sale of New and Used (no more than five (5) years), the national user of units which will optimize the carrying out of their works and contracts. I would like to point out and share the following information about this experience with the constructor and the Iranian producer.
•Advantages of the Experience: It was a positive experience to demonstrate to the involved actors (manufacturers, distributors, authorities of the National Government, financial entities, users and groups related to the subject), through the making of this event, that the Agreed Sale sponsored by the AVMP, is a mechanism that facilitates the democratization of the national demand, for all buyers can have access to the world market of equipment, new or used, paying with Bolivares and with the support of the national financing. Together with this, the national stock of machinery was increased in a relevant figure of fifty (50) pieces of machinery.
•Strengths of the Event: During the two days of the Agreed Sale, we made a census of four hundred eighty one (481) companies interested in the advantages of the this union of efforts. Three hundred and twenty four companies (324) were recorded for follow-up and two hundred ninety seven (297) quotations were made. We must point out the excellent acceptance of this initiative in the PYMES and Cooperatives sectors, groups of entities involved in the construction which due to reasons of newly started proceedings, do not actively participate in the entities of the construction ambit, even when they expressed in several ways, their satisfaction for this initiative of the AVMP.
•Problems and Solutions dealt with during the Agreed Sale: Among others, we can point out that not all the potential users were able to get the equipment they needed; the large companies expressed their needs of special equipment due to their capacities and functions which were not exhibited in the supply offered. To correct this, we will deepen the field work allowing us to learn more accurately about the national demand. Likewise, the national buyer has a special like for traditional trademarks of renown prestige, despite the cost-benefit relationship that these may give them. The post sale service rendering, even though we are aware of its present shortage in the country, is one of the most important bases for the user who bought or requested a quotation of an equipment at the Agreed Sale. The international suppliers of new, as well as used equipment, require an international back to back credit mechanism faster and less bound by the regulations of time proceedings (90-120 days) that the National Administration of Foreign Currency usually takes for these imports. Buyers have a special preference for the selection of equipment that are already in the country, leading us to consider temporary or in bond imports for future events. We will try to implement this experience with the SENIAT (CUSTOMS) authorities. For future events, the international suppliers have recommended and suggested that the organizing and responsible entity for the Agreed Sale, should be a domestic and/or international company the management of which, shall be other than that of the selling companies. For this purposes, we must consider the formation of a company-institutional consortium coping with this request of commercial impartiality. Likewise, in future events, there shall be an agreement with the national representatives of international trademarks on the facilitation of commercial practices allowing the sale in the country of used equipment (no more than five (5) years), machinery of those trademarks, property of the international concessionaries whose representatives had expressed their inconformity with the Agreed Sale.
•Preliminary Results of the A.S.: According to the estimates provided by the supplying companies of equipment which participated in this A.S., FOB sales in the order of four million (4,000 M) US dollars. Anyway, even when the A.S. was made during the month of April, it is now when the corresponding authorities of the National Administration of Foreign Currency is issuing the currency to the international suppliers. These results in the short term, inure to the benefit of the members of the AVMP and de CVC, for they produced royalties that will allow the self financing of institutional projects such as Polytechnic Institute for training of Operating personnel, Technicians, and Professionals of the Construction Machinery; so necessary for the development plans regarding infrastructure, housing and habitat, established by the national government
•Perspectives for the immediate future; the projections necessary to cope with the national market that the AVMP must develop as soon as possible shall transit through the achievement of joint efforts with the entities of the Executive Government (Min. of Finance, CADIVI, MILCO, SENIAT, Bank of the Treasury, BANDES) to achieve through administrative provision, the creation of a Trust in the order of thirty thousand million (30,000 M) dollars to give a back to back support with the Government Banking and the Commercial Banking, a fiduciary fund of monetary feedback with the issue of short term credits (to the suppliers) and long term credits (to the buyers) satisfying the expectations of the national buyers (Cooperatives, PYMES and the companies in general) and therefore not harming the National Treasury, providing equipment to the national user, so the Venezuelan construction professional can act according to the development plans established by the national government, for the urban provision of equipment for communities, regarding infrastructure, housing and habitat.
Hoping to count on your significant contributions and comments to this initiative of the AVMP, our email is at your disposition:
uniapravi@gmail.com
Jaime Parra
Advisor Director of the AVMP.
Member of the Board of Consultants of the Board of Directors of the CVC.
Legal Director of AVEXCON.
Caracas, August, 2, 2007.-
IMPORTANT LINK to VISIT: http://www.equipmentwatch.com
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