CTT, a major construction equipment trade show, was held in Moscow, Russia, earlier this month. Speaking at the event, Secretary General of the European Construction Equipment Association (CECE), Ralf Wezel, confirmed that the Russian construction equipment industry is doing fairly well compared to other European markets. For example, a third of the tower cranes produced and sold in Europe are going to Russia. Building hoists, truck mixers, concrete-batching plants, mixing systems and pumps are in demand in the country. The area where sales have declined in 1Q13 is road equipment, yet according to Wezel, “despite this, Russia remains one of the growth engines for our industry”.
Last year, European construction equipment turnover increased by 3.4% to reach €25 billion, and sales are predicted to remain at this level in 2013. Manufacturers in Europe are likely to offset the slowdown in the region by targeting growth markets outside of Europe.
In 1Q13, there was a slight improvement in sales in Western Europe and Northern Europe, but Southern Europe continued to suffer. Sales of earth moving and road equipment fell by 20% and 30% y/y, respectively, in Southern Europe, with the potential to fall further in some countries in the region. In 2007, Portugal, Spain, Italy and Greece together held a market share of around 25% of European sales. In 2013 this share dropped to 3.5%. There has been some improvement in sales of building construction equipment, but only in certain areas, such as Russia, Scandinavia, Turkey and Germany. The industry expects to do better in 2Q13, as construction activity picks up following the prolonged winter weather. CECE reports that companies experienced positive order intakes at and after bauma 2013, which took place in Germany in April.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/18062013/european_construction_equipment_industry_growth_russian_market_46/