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

  • Wacker Neuson reports strong performance in Q1 2015
    May 13, 2015
    Wacker Neuson’s strong financial performance of late is continuing, with good results posted for the first quarter of 2015. The Munich-based light and compact equipment manufacturer experienced strongest growth in the Americas region. Currency fluctuations had a significant positive impact on growth. The Group has confirmed its forecast for fiscal 2015. Revenue is 11% higher than for 2014 at €324.3 million compared with €291.6 million. This represents a record first quarter revenue for the company. “We have
    Read More
  • Global sales of earth moving machinery surge 23% in 2018
    April 23, 2019
    Global sales of earth moving machinery in 2018 accelerated sharply – up 23% on 2017 to top out at 1 million units. The record result in 2018 was driven by a combination of several factors. One of these factors is investments in construction on a global scale in excess of €7,150 billion, as highlighted by data analysed by Prometeia for SaMoTer Outlook 2019, the sector observatory presented today at Veronafiere during the 5th edition of SaMoTer Day. The event is one of the stages in the run up to the 31st
    Read More
  • World asphalt demand to grow 3.6% a year until 2017
    January 6, 2017
    World demand for asphalt will grow by 3.6% annually until 2017, according to Cleveland market research company The Freedonia Group. This follows a decline in demand between 2007 and 2012 in North America and Western Europe, during the global economic crisis. “Gains will be driven by especially strong growth in consumption in China and other developing countries as they work to improve their transportation infrastructures,” said Freedonia analyst Mariel Behnke.
    Read More
  • World asphalt demand to grow 3.6% a year until 2017
    March 4, 2014
    World demand for asphalt will grow by 3.6% annually until 2017, according to Cleveland market research company The Freedonia Group. This follows a decline in demand between 2007 and 2012 in North America and Western Europe, during the global economic crisis. “Gains will be driven by especially strong growth in consumption in China and other developing countries as they work to improve their transportation infrastructures,” said Freedonia analyst Mariel Behnke.
    Read More

Highlighted Content