Growth again

By CECE09 May 2008

More than € 30 billion worth of construction equipment was manufactured in Europe last year, according to the latest economic report from CECE. The total value of production across Belgium, Finland, France, Germany, Italy, Poland, Sweden, Spain, Turkey and the UK was € 29,97 billion. In addition, about € 1 billion of construction equipment was manufactured in the Netherlands, although an exact figure is not available.

This production level represented a +19,2% increase on 2006 at current prices. It was the fourth consecutive year of rising construction equipment output among these major European countries, and the steepest growth since the current up-swing began in 2004.

By far the largest construction equipment manufacturing country in Europe is Germany. Last year it built some € 9,26 billion worth of machinery - close to 30% of the European total. Germany also illustrates the sharp growth of the last few years, with the value of production more than doubling since 2003, when € 4,29 billion worth of machines were made.

Other major manufacturers of construction equipment last year included Italy, with production valued at € 6,65 billion, the UK (€ 4,24 billion), France (€ 2,78 billion) and Sweden (€ 2,31 billion).

Market

Excluding the Netherlands - again full data is not available - the total market for construction equipment in these countries last year was € 17,6 billion. This highlights Europe's strong position as a net exporter of equipment - 2007 saw net exports of € 12,4 billion - 41,3% of production from these countries.

It is also interesting to note that exports are growing faster than the European market itself. Last year the market was up +17,7%, while production rose +19,2%. With demand for equipment in Europe expected to level off this year - CECE expects just a +1,8% rise at current prices - the strength of demand outside the region will see the share of exports pushed up even further.

This has been the trend throughout this decade. In 2002, Europe's net exports of construction equipment stood at € 5,27 billion - 32,8% of production. This trade volume is forecast to hit € 14,2 billion next year, or 44,3% of production.

In terms of the value of exports, Germany leads the way with € 5,77 billion of the country's production sold outside the country last year. This is forecast to grow to € 6,25 billion this year, some 63% of production. Other countries expected to export more than half their production of construction equipment this year include Finland (52,8%). Italy (50,6%) and Sweden (80,5). Among the various countries surveyed in CECE's economic report only Poland, Spain and Turkey are net importers of construction equipment.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Construction Europe Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
More News from Construction Europe
Loxam accelerates environmental shift
Equipment rental company aims to halve direct emissions by 2030 and cut indirect emissions by 30%
Construction starts on Milan’s renewable offices
New CityWave building will put ‘quality of life’ first and aims to have a “positive impact” on the environment
New HBOX+ lighting tower from Himoinsa
HBOX+ is designed for efficiency, connected remote control, safety and easy transport
CONNECT WITH THE TEAM
Mike Hayes Editor, Construction Europe Tel: +44 (0)1892 786 231 E-mail: mike.hayes@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA