Construction Equipment Sales on the Rise in Europe

The European market for construction equipment including pavers and road building equipment continues to be in a healthy state. In fact, Europe was the second fastest-growing place in the market for equipment in 2014. 

However, sales still remain below the record levels recorded in 2007, by at least 40 percent. We look at the detail behind these statistics, and what it means for the UK construction equipment market in particular.

Regional Sales Growth and Expansion

According to experts, sales grew by 9 percent in 2014 compared to the levels in 2013. Europe took second place behind North America in terms of the levels of market growth. There are, however, differences within Europe and it matters tremendously where dealers are located when it comes to sales. The sale of construction equipment continues to lie at a low level in southern Europe, while places like the UK and Germany are doing much better. Sales here are almost back to the levels they were pre-recession. On the contrary, Russia and Turkey reported poor sales throughout the year and actually saw levels fall. The UK saw a healthy growth in sales that is drawn out of the country’s rise out of recession, with an uptick in major projects and an increase in investment in the construction industry.

Road Building Equipment: Figures

The road building equipment sub-sector was the best performing out of all the sectors, with growth reported at 19 percent over 2013. This growth rate was sustained across the different groups of equipment, including light construction items up by 20 percent, and asphalt pavers up by 21 percent on 2013.

What’s the Outlook?

Experts in the industry are cautiously optimistic about the state of the market for the rest of this year. Many believe that the recovery that started a few years ago will continue into 2015 and the signs are that the industry is on a positive path, with growth predicted in most areas in the coming years. The UK looks particularly strong in comparison to other countries in Europe, although certain sectors are better equipped than others for maximum growth.

Conflicts in Europe could affect the health of the construction equipment market, although it is difficult to say exactly how this will pan out. Any crisis with the euro could mean problems for the industry although many sectors will successfully weather any ups and downs.

The important thing, commentators say, is to look for ways to increase profitability and sales in the sector by analysing what’s working and what can be improved. Sectors in the construction equipment market that historically have been slow to grow should be focused on as a priority. Across the board, construction equipment is vulnerable to recession but improvements can be made when industry specialists look at the opportunities evident in the market, even during tough financial times. By looking ahead, the industry can weather storms and become increasingly robust.

 

 

 

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Posted on 20 Jul 2015 in News

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