UK construction machine sales strong says CEA

According to the Construction Equipment Association (CEA), UK exports of construction and earthmoving equipment remain healthy. The figures show that sales continued on a strong upward trend in the last quarter of 2017, showing growth for the fifth consecutive quarter. Machine exports in Q4 2017 showed an 8% increase on Q3 levels, at £780 million; the highest for over three years. A strong finish to 2017 resulted in total exports showing a 22.7% increase on 2016 levels at £2.9 billion. UK equipment
March 9, 2018 Read time: 2 mins

According to the 3418 Construction Equipment Association (CEA), UK exports of construction and earthmoving equipment remain healthy. The figures show that sales continued on a strong upward trend in the last quarter of 2017, showing growth for the fifth consecutive quarter. Machine exports in Q4 2017 showed an 8% increase on Q3 levels, at £780 million; the highest for over three years.

A strong finish to 2017 resulted in total exports showing a 22.7% increase on 2016 levels at £2.9 billion. UK equipment manufacturers are continuing to benefit from improving demand in many of the major overseas markets, as well as the benefit of the weaker £ exchange rate since the middle of 2016, following the Brexit referendum.

The USA remained the top destination for UK exports in 2017, accounting for 24% of total exports on a £ value basis. Collectively, exports to EU28 countries have increased slightly to 42% of total exports on a £ value basis in 2017, compared with 41% in 2016.

Imports of equipment showed an increase in Q4 of 3.8% in £ value terms compared with Q3, but did not return to the levels seen in the first two quarters of the year. However, overall imports in 2017 showed a 16.1% increase on 2016 levels.

Import data showing higher levels of imports of equipment in 2017 are consistent with growth in equipment sales to the UK market, according to the UK construction equipment data exchange. This shows an increase of nearly 8% in retail sales of equipment in 2017 compared with 2016, at approximately 30,000 unit sales.

Japan remained the single biggest country source of imports in 2017, and showed a 54% increase on 2016 levels to reach £297 million. This increased their share of total imports from 15% in 2016 to 20% in 2017. However, imports from EU28 countries in 2017 totalled £908 million and accounted for 61% of total imports.

In summary, the UK remained a net exporter of construction and earthmoving equipment in 2017. On a £ value basis, the trade surplus showed a significant increase in 2017 to reach £1.43 billion, 30% higher than 2016. Overall, exports were not far short of double the level of imports in 2017.

Finance & Funding

For more information on companies in this article

Related Content

  • Wacker Neuson improves Q3 earnings in despite challenges
    November 14, 2016
    Light and compact equipment manufacturer Wacker Neuson Group saw revenue and earnings for the third quarter of 2016 increase relative to 2015. The company said that seen over a nine-month period, revenue remained at the prior-year level, balancing out the drop in earnings experienced during the first half of the year only partly. Despite adverse market factors, including ongoing crises in many emerging markets and key industries such as the agricultural sector, the oil and gas industry and mining, gro
    Read More
  • Growth in road machines business for Italy
    September 12, 2016
    Italy has seen growth in the market for road construction machines in 2015. According to data from the SaMoTer-Prometeia Outlook analysts, the country’s exports of road construction machines grew 27.5% while its imports of equipment for the market jumped 30.8%. The market for compaction equipment and bitumen mixers grew considerably, rising €113.2 million for exports and €22 million for imports. This general market resurgence comes after several years of stagnation for the Italian construction machinery ind
    Read More
  • VDMA reports steady German equipment sector
    February 14, 2013
    Steady financial performance is claimed for the German equipment producers in 2012, according to the manufacturing association VDMA. The German construction equipment and building material machinery industry generated €12.5 billion in turnover during 2012 according to the latest results. Of this, construction equipment accounted for €7.9 billion, while €4.6 billion of business came from the building material, glass and ceramics machinery sector. This is a nominal decrease of around 1% compared to 2011. Afte
    Read More
  • Construction equuipment market improves
    May 14, 2012
    The German manufacturers association, VDMA, has compiled data suggesting that following the slump in construction equipment sales in 2009, the market will recover in 2010. The VDMA reports that in 2009 German construction equipment sales fell in by some 43% to €9.5 billion. Dr Christof Kemmann, VDMA chairman said at a recent board meeting of the organisation, “...2009 has been the most difficult year ever for our industry.”
    Read More

Highlighted Content