The construction equipment and building material machinery sector could improve by 5% by the end of 2017 if the conditions of the first six months continue, but challenges ahead may prevent this, warns the VDMA (Verband Deutscher Maschinen- und Anlagenbau).
The VDMA, the industry’s member association body, suggests that business in the first half of the year particularly for construction equipment manufacturers has been unexpectedly good, projecting that by the end of the year turnover could be 14.6bn (US$17.6bn).
This positive trading was experienced in Germany, but also across Europe and is true for all sub-sectors, including earthmoving, civil engineering, tunnelling, building and road construction machines. Demand is also now picking up in regions of the world where performance has recently been weak, for example China or Russia. However, while the upturn has been welcomed, there are now concerns that supply bottlenecks are already appearing on the supplier side.
At the VDMA’s board meeting in Coburg, Germany, chairman Johann Sailer said, “The unexpected significant good business development is good for us. After a weak 2016, building material manufacturers are now enjoying a considerable upturn of business, mainly coming from Germany and Central Europe, but the sector is still a long way from the good levels it had achieved in the years before 2012.
“A stronger sustainable business development in the building machinery sector is not expected until 2019 and the growth forecast of +5% is therefore not cast in stone.”
July 21, 2017