2024 CECE ECONOMIC REPORT: 2023 was a year of transition for construction equipment industry

THE 2024 CECE Annual Economic Report highlights a year of transition for the European construction equipment industry in 2023, with a mix of stability and decline across different segments.

The sector saw 2023 being marked by significant challenges amidst a severe downturn in the building construction industry and increased geopolitical crises.

Despite facing headwinds, the industry demonstrated resilience with relatively stable sales on the European market, albeit with notable differences across sub-segments and regions.

Overall, sales of construction equipment in Europe declined by 10% in 2023, following a period of very high absolute levels.

The decline was primarily attributed to a downturn in road machinery, particularly light compaction equipment, which saw sales fall by 21%.

Earthmoving equipment and concrete equipment maintained stable performances, with minimal 1% growth in sales. With growth in sales of 16% in Europe in 2023, tower cranes were the strongest performing of the construction equipment sub-sectors.

However, this is solely attributable to the one-off effect in Turkey, where reconstruction efforts after the earthquake pushed tower crane sales significantly. If Turkey is excluded, sales of tower cranes in Europe were down by 27% in 2023.

Outside of Europe, growth in key export markets like North America and the Middle East helped European manufacturers improve their overall business performances despite the challenging market conditions in 2023.

Looking ahead, the outlook for 2024 remains uncertain, with cautious optimism tempered by ongoing challenges. The European market is expected to face further declines, particularly in the building construction equipment segments, amidst economic uncertainty and geopolitical threats. However, opportunities in global export markets may provide some respite for European equipment manufacturers, with North America remaining a key focus.

CECE President Jose Antonio Nieto said: “In the face of global economic challenges, I remain cautiously optimistic about the possibility of a smooth landing for the economy in 2024-2025. While the Eurozone has experienced setbacks, including the impact of the war in Ukraine and inflationary pressures, I believe that prudent decision-making and concerted efforts can mitigate risks. By focusing on stimulating investment and fostering innovation, Europe can navigate through these challenges and pave the way for sustainable growth and prosperity.”

 

Related articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share article

Latest articles

Newsletter

Subscribe to stay updated.


Notice: ob_end_flush(): Failed to send buffer of zlib output compression (0) in /home/heatzone/specifymagazine.co.uk/wp-includes/functions.php on line 5427