30 March 2020, 14:00
The national CECE member associations shed more light on regional developments in the European construction equipment sector, describing main drivers of growth and forecasting the year 2020.
Belgium - AGORIA
How did the market develop in 2019?
2019 was an excellent year, although very slightly below the exceptional year of 2018.
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sales of earthmoving equipment and construction showed same results as 2018.
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sales of lifting equipment decreased by ±4,5% in units.
What were the main drivers?
Earthmoving equipment & construction :
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Civil engineering works (renovation and new construction) were largely supported by the existing order portfolio. New sales were slowing down.
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Other favorable one-shot effects like the “Energy Performance of Buildings EPB 2018” effect, the acceleration of certain projects (Brussels tramway, Oosterweel, etc.).
Lifting equipment : e-commerce & automation is helping this booming business. Belgium’s economy is based on services and as such contributes largely to our sector’s success.
What is the forecast for 2020?
Despite a still busy sector, Sigma (Equipment Representatives for Public and Private Works, Building and Handling) expects a drop of ±15% in 2020, as major investment projects are slow to materialize. After many exceptional years, this decline does not create any (immediate) problems, as order books remain full for maintenance or smaller projects.
We still don’t have a government. In the long term, it may have an impact on crucial investments in the renewal of our infrastructure because of the lack of decisions.
Czech Republic - SVSS
How did the market develop in 2019?
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construction equipment sales up by -2,6%.
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market is +6% above par with pre-crisis record.
What were the main drivers?
Based on the fact, that in year 2018 there was -1% decline (against 2017) in general construction permits in Czech republic. Construction permitted in 2018 was constructed during 2019 – this is the reason for downturn.
Again comparing the overall construction permits value database by Czech Statistical Bureau.
What is the forecast for 2020?
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Sales volume: +2%.
As the overall qty and value of construction permits did rise 3% in 2019 in comparison with 2018 – we expect better sales forecast for 2020.
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Turnover: 100 % to 103 % Based on the fact, that some manufacturers will have to introduce the EU Stage V motorized units to the market – higher turnover is expected.
Worldwide industry turnover: 101%.
Finland
How did the market develop in 2019?
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Construction of residential buildings decreased by -5,0 %.
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Construction and mining machinery exports decreased by -5 %.
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Construction equipment rental decreased by -1 %.
What were the main drivers?
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Low interest rates
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Residential building starts decline from high level
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Public projects drive civil engineering
What is the forecast for 2020?
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Finnish GDP is expected to grow by +1,0 %
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Construction of residential buildings is expected to plummet by -18,0 %.
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Total construction (new buildings, renovation and civil engineering) is expected to decrease by -3,0 %.
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Construction equipment sales are expected to decrease by -5…-10 %.
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Rental markets are expected to grow by +5 %.
France - cisma
How did the market develop in 2019?
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construction equipment sales up by 5%.
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earthmoving equipment sales: 11%.
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strong market recovery for 4 years.
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market 10% below the last peak in 2007.
What were the main drivers?
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Growth in investment in the house building sector, especially renovation work.
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Antiseismic safety measures in infrastructure work (bridges, overpasses)a
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favorable investment climate (low interest rates, increase, improvement of the municipalities fiscal situation).
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Real estate boom in metropolitan areas.
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Big investments in storage buildings.
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Road/bridges programs benefit civil engineering.
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The greater Paris project support the civil engineering activity in Paris and the region around Paris.
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Rental customers with strong fleet investments.
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A high level of machine replacement due to the obsolescence of fleets.
What is the forecast for 2020?
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Sales volume: -5%.
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Turnover: -5% to +5%.
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A bit less purchase from rental companies.
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Active support from private actors.
Germany - VDMA
How did the market develop in 2019?
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Sales in Germany went up by another 10%
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Earthmoving equipment sales reached 40,000 units for the first time in history.
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Compact equipment performed slightly stronger than heavy equipment.
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Second half delivered an unexpectedly strong momentum.
What were the main drivers?
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Strong growth was a result of improved ability to supply (better machine availability).
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General economic climate in Germany still favourable.
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Customers from all segments still record strong order backlog and good capital availability.
What is the forecast for 2020?
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Stable underlying demand, but a cyclical downturn should translate into a 5% to 10% sales decline.
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Market should meet (the very strong) 2018 levels.
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Availability of operators still a major bottleneck.
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Total industry turnover forecast of German manufacturers: -3% to -5%.
Italy - UNACEA
How did the market develop in 2019?
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construction equipment sales up by 16%.
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earthmoving equipment sales: 15%.
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market is 50% compared with pre-crisis record levels.
What were the main drivers?
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Sostitution of obsolete fleet.
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Incentives laws.
What is the forecast for 2020?
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Sales volume: 9%.
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Turnover: 2% to 4%.
Spain - ANMOPYC
How did the market develop in 2019?
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construction equipment sales up by 7,4% earthmoving equipment sales: 12,08%.
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the market continues to grow but still with lower values than before crisis.
What were the main drivers?
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Economy slowdown (especially in the second half of the year).
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Political crisis has paralyzed public investment making more conservative to private sector.
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Construction sector continues to grow but affected by the slowing due to uncertainty.
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Increase of earthmoving compacting and lifting equipment sales.
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Decrease of equipment mini, crushing and compacting.
What is the forecast for 2020?
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Sales volume: 7%.
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Turnover: 4,6% to 3,1%
Sweden - SACE
How did the market develop in 2019?
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Earthmoving: Moderate increase in domestic sales as well as exports.
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Compaction: Almost status quo in domestic sales as well as exports.
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Others: No big changes in domestic sales or exports compared to 2018.
What were the main drivers?
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Big infrastructure projects are still running.
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Still a high demand, especially in the north American market.
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Several big infrastructure projects are still in progress.
What is the forecast for 2020?
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Moderate stagnation in domestic sales as well as exports.
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A moderate increase in exports but more or less status quo in the domestic market.
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A moderate increase in domestic sales as well as in exports.
Turkey - imder
How did the market develop in 2019?
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Total construction equipment sales decreased by %54.4.
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Earth moving equipment sales were down by %53.2.
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Lowest sales numbers of the last five years were seen in domestic market.
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Sales figures of the domestic market fell to the level of 3.000 units.
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A growth recorded in the last quarter of 2019 compared with the same period of the previous year (32.5% in October, 6%in November, 52% in December).
What were the main drivers?
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High interest rates, increase in exchange rates and inflation caused a significant decrease in the profit margins of the manufacturing sector, which is dependent especially on component imports.
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As in 2018, the primary customer in 2019 were the public authorities.
What is the forecast for 2020?
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It is expected that the positive atmosphere caught in the last quarter of 2019 to grow stronger with an important decrease in interest rates and inflation expected in 2020.
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A considerable increase in rental tendency and export is expected also in 2020.
UK - CEA
How did the market develop in 2019?
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Sales of construction and earthmoving equipment showed a 6% fall in 2019.
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This followed a peak level reached in 2018, after sales reached their highest absolute levels since the market crash 10 years before.
What were the main drivers?
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While construction activity was relatively stable, the equipment market seemed to suffer more from the climate of political and economic uncertainty.
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Construction output grew by 2.5% in 2019, but new orders showed signs of weakening, falling by 1.2% on 2018 levels.
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Civil engineering (infrastructure) was the strongest sector in 2019 showing growth in new orders and output.
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The housing sector also showed growth in output in 2019, but new orders fell by 7.6%.
What is the forecast for 2020?
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Construction output is forecast to show a small decline in 2020, at between 0% and -0.5%.
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Sales of construction equipment are expected to stabilize as the political and economic uncertainty of 2019 comes to an end. However, equipment sales are expected to be relatively flat, at similar levels to 2019.
Source: CECE - Committee for European Construction Equipment