Business confidence in construction

Business confidence is strong in the global construction equipment market at present. Manufacturers of machines around the world, as well as component suppliers, are all reporting strong financial performance, with healthy sales and order books. Many manufacturers including Deutz, Komatsu, Manitou, Volvo CE and Wacker Neuson have announced robust financial results recently, with many seeing record levels of sales and turnover. Firms in China, Europe, Japan, South Korea and the US all report good levels of
June 29, 2018 Read time: 2 mins
Business confidence is strong in the global construction equipment market at present. Manufacturers of machines around the world, as well as component suppliers, are all reporting strong financial performance, with healthy sales and order books.


Many manufacturers including Deutz, Komatsu, Manitou, Volvo CE and Wacker Neuson have announced robust financial results recently, with many seeing record levels of sales and turnover. Firms in China, Europe, Japan, South Korea and the US all report good levels of business, a much welcome change from the weaker market conditions of a few years before. This is because the major construction markets of Asia, Europe and North America are all very healthy at present, although some areas such as the Middle East and parts of Latin America remain sluggish or depressed.

The need for new machines is strong as the pool of nearly new secondhand units parked up in yards around the globe has all but dissipated. Firms that had unsold inventory following the global crash 10 years ago have managed to deal with this issue.

Massive construction projects are underway in many countries, with China’s Belt & Road programme fuelling demand for machines across Asia, Europe and even parts of Africa. Meanwhile landmark expansion work such as the Grand Paris Project is attracting contractors and equipment need in France.

There are some problems though and not everything is rosy. One notable issue is with the of components. Parts as diverse as hydraulic components and engines are in short supply, resulting in production hold-ups for manufacturers. This is having the knock-on effect of longer lead times of new machines for customers than many construction equipment manufacturers would like.

The reason is understandable. Many suppliers suffered during the global slowdown and saw their stocks of unsold inventory rise, so they have been cautious with regard to gearing up production. But there are concerns too about how long the present demand for construction equipment will continue. The US for example is currently experiencing one of the longest continuous periods of growth since WWII. Some in the construction machinery sector wonder how long this can last.

But for manufacturers and contractors alike, now is the time to capitalise on demand. The construction sector is cyclic after all.

Related Content

  • Global pressures driving bitumen developments
    June 19, 2015
    A raft of global pressures is driving developments in the materials and equipment we use for the handling, storage and treatment of bitumen. The goal is to achieve better performance and longer life for less financial outlay, and at the same time overcome the challenges of inconsistent and varying bitumen supplies. Kristina Smith reports.
    Read More
  • Concrete paving market developments
    February 9, 2018
    Key developments are being seen in the concrete paving and slipforming market - Mike Woof writes. Key changes are taking place in the concrete paving and slipforming sector, with two of the well-known names in the market recently having changed hands. Both Miller Formless and Power Curbers/Power Pavers have recently been acquired from the families that set up these firms. In both instances the owners of the companies decided to retire and opted to sell these specialised businesses to suitable parties.
    Read More
  • LiuGong embraces Industry 4.0
    November 27, 2018
    LiuGong chairman Zeng Guang’an says that the firm is fully embracing Industry 4.0 technology. Coupled with ongoing machine development, an expanding global sales and manufacturing network and long-established strong relationships with customers and suppliers, this is enabling the Chinese construction equipment giant to target RMB 50 billion (US$7.18bn) operating revenue by 2025. Chairman Zeng outlined the impressive scale of LiuGong’s future ambitions during an impassioned speech in front of an audi
    Read More
  • Jennifer Rumsey to succeed Tom Linebarger as Cummins president and CEO
    July 15, 2022
    Jennifer Rumsey is to succeed Tom Linebarger as Cummins president and CEO.
    Read More

Highlighted Content