Strong demand for German construction machines

Strong demand for construction machines is being reported by the German equipment manufacturing association, the VDMA. Its report says that following a good start to 2017, the upward trend has continued for the construction and building equipment industry.
July 13, 2017 Read time: 2 mins

Strong demand for construction machines is being reported by the German equipment manufacturing association, the VDMA. Its report says that following a good start to 2017, the upward trend has continued for the construction and building equipment industry. The VDMA analysis says that the sector expects to increase its total turnover by 5% by the end of the year to around €14.6 billion.  

Business levels have exceed predictions, especially for construction equipment manufacturers, both in Germany and on the international markets. This is true for all sub-sectors, namely earthmoving, civil engineering, tunneling, building and road construction machines. In addition to the good business development in Europe during the past years, demand is now also picking up in world regions that have performed weakly in recent times, such as China or Russia. While the strong market has been helpful to revenue for manufacturers, some firms are now seeing bottlenecks developing in supply chains.

“The unexpected significant good business development is good for us,” said Johann Sailer, chairman of the 1188 Construction Equipment and Building Material Machinery Association of 1331 VDMA (the German Engineering Federation). However, he cautioned against excess optimism. In view of the general political and economic climate, the situation could take a turn at any time. “The growth forecast of plus 5% is not cast in stone.”

Finance & Funding

For more information on companies in this article

Related Content

  • Construction equipment launched at Bauma China
    February 15, 2012
    The 2010 bauma China event did, as expected, break all previous records, with companies launching more new equipment than ever. Patrick Smith reports. The queues at the entrances on the first day of bauma China 2010 indicated what the rest of the week had in store. As thousands of visitors poured through the gates each day to view the latest in construction equipment at the expanded Shanghai New International Expo Centre, the organisers knew they were looking at another successful event.
    Read More
  • Construction sector's quiet revolution for digital worksites
    February 8, 2017
    The digital worksite topped the agenda at this year’s CECE congress. David Arminas reports from the Czech capital Prague* Europe’s equipment manufacturers and their clients are truly in an age of transformation driven by an increasing move towards the digital worksite. Because this transformation is so deep, there looms big challenges for the entire sector and its supply chain, noted Bernd Holz, president of the CECE – Committee for European Construction Equipment, Europe’s umbrella organisation for
    Read More
  • DEUTZ wins record level of orders under current business structure
    August 8, 2013
    DEUTZ has won a record level of new orders under its current business structure in the first half of 2013. The globally renowned German diesel engine manufacturing firm saw new orders rise by over 20% year on year to €843.5 million, compared to €701.0 million in H1 2012. Despite the number of engines sold by DEUTZ in H1 2013 falling by 8.5% to 85,907, compared to the corresponding period of 2012 (93,853 units), the company’s first-half revenue declined by only 2.8% year on year to €662.1 million, compared t
    Read More
  • 2-4 year-old construction equipment tops buyer ‘wish list’
    May 11, 2012
    A leading used construction equipment auctioneer firm boss believes equipment aged between 2 and 4 years is now topping buyers’ ‘wish lists’, as 1 to 2-year-old used stocks deplete. Jonnie Keys, General Manager of Euro Auctions, said that with the cost of new equipment currently up by around 20% on prices in June 2009, the used market is still strong. “Euro Auctions has repeatedly seen over 30% of all plant sold leaving the UK and Europe for projects in Australia, South Africa, South America, Central Ameri
    Read More

Highlighted Content