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The CECE Annual Report 2017 has concluded that European construction market demand would continue to rise. Image courtesy: <em>Agg News</em>.
The CECE Annual Report 2017 has concluded that European construction market demand would continue to rise. Image courtesy: Agg News.

Optimism ‘strong’ in new construction report

A recent economic report about the state of the European construction equipment market has concluded that it is at its highest level in five years, albeit below ‘pre-crisis’ levels.

The main findings from the Committee for European Construction Equipment (CECE) Annual Report 2017 included the building construction equipment sector increasing its demand by 10 per cent.

However, the report also indicated that despite Europe outperforming other regions – ranking third in development behind China and India – the figures fell short of expectations.

“The double-digit sales growth in 2016 sure was positive news for our industry in Europe, but we still see big disparities across the continent,’ CECE economic expert Sebastian Popp told Agg News.

“Volume-wise, the strongest sales increases were recorded in France, Germany and Italy, [with] the German market in particular and Northern and Western Europe in general close to their historical record levels,” Popp added.

“[However], recovery in southern Europe and central and eastern European countries still falls short of expectations.”

Looking ahead: market optimism

According to the report, sales of earthmoving equipment increased 12 per cent, while building construction equipment increased 21 per cent.

While the CECE Business Barometer Index (BBI) – a diagram that charts the current business situation and turnover expectation of the industry according to surveyed manufacturers – experienced a temporary low after the Brexit vote in late 2016, it appears that uncertainty has been outweighed, with the highest BBI recorded in over six years.

Furthermore, according to the BBI, two-thirds of the earthmoving, road and concrete equipment manufacturers surveyed expected an improvement in the market across all sub-sectors.

The report concluded that a ‘slight upward tendency’ would be the most realistic scenario for Europe in 2017.

The CECE represents and promotes the European construction equipment and related industries. Representing the interests of multiple construction equipment companies, the CECE is headquartered in Brussels, Belgium.

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Tuesday, 19 June, 2018 06:49pm
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