Growth expected in construction equipment industry
Published by Rebecca Bowden,
With a turnover of €9.3 billion in 2016, German manufacturers of construction equipment achieved an increase of 3% compared to 2015. In comparison, within the same period, world sales of construction equipment declined by 1%. In 2017, the German market expects another increase in sales of about 3%.
As in the previous year, 2016 saw companies benefit from their strong position on the European and German markets. Following a strong 2015, the domestic market grew by another 20% and achieved a level almost as high as in 2007, which was a record year. Sales on the domestic German market amounted to €3 billion.
“In view of this high level, a further growth seems hardly possible, even if our customers continue to make good business in Germany”, says Johann Sailer, Chairman of the Construction Equipment and Building Material Machinery Industry Association of the German Engineering Federation, VDMA.
Compared to the previous year, the European market rose by 8%, with France as the second growth driver next to Germany.Declines were recorded only in the UK and in Central Eastern Europe. It is predicted that the markets in Northern and Western Europe will remain stable in 2017, with that of Southern Europe expected to modestly recover even further. Thus, sales figures in Europe are not expected to see any significant changes in 2017.
In North America, the industry saw a slight double-digit sales decline compared to 2015, as forecasted. It is expected that the market will become more stable in 2017. Infrastructure programmes and investments that have been announced by the US-administration are expected to stimulate demand in the construction industry as a whole.
No market improvements can be reported in Latin America, where, on the average, markets in the region were limited by the weakness of the Brazilian construction industry.
The construction industry in Asia is looking positive. Following four years of decline, 2016 saw China return to growth. The Indian construction equipment market increased by 30%, driven by strong investments in road construction. The sector is predicted to continue to grow in 2017. It is expected that South East Asia will also show positive signs, especially in Indonesia and Myanmar. A substantial turnaround in the Middle East, however, is not expected.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/01032017/growth-expected-in-construction-equipment-industry/
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