Annual Economic Report

Constructing the Europe of Tomorrow

CECE publishes its Annual Economic Report in the spring of each year, providing an in-depth look on the state of the European construction equipment sector.

The European construction equipment industry is a key example of Europe’s engineering championship and a fundamental asset in constructing the sustainable and competitive economy that Europe needs to be fit for the future. The sector’s durable and innovative machinery, manufactured by thousands of employees and used and maintained by thousands of others, helps to build the houses, offices, schools, factories, railways, roads, bridges, tunnels and canals that connect people, boost economic growth and serve citizens across Europe and the world.

In a nutshell, the around 1200 manufacturers organised in CECE employ about 130,000 people directly, with a similar number active in sales and services. The industry has a turnover of about EUR 26 billion from European production, which represents about 5% of total EU engineering output and equals some 20% of the worldwide production of construction equipment. 

The Annual Economic Report - 2017 can be read and downloaded here.

The Annual Economic Report - 2016 can be read and downloaded here.

The Annual Economic Report - 2015 can be read and downloaded here.

 

Executive summary 2017:

CONSTRUCTION INDUSTRY

Growth in European construction investments accelerated in 2016, thanks to a strong impulse for residential and non-residential building construction. 2017 is expected to see a continuation of the construction market recovery, but the growth drivers will shift: While civil engineering should be back on track, building construction will most likely see slower growth than last year.

MINING INDUSTRY

The mining sector seems to have hit the bottom last year, and is set for stabilization in 2017. Along  with growing commodity prices around the globe, a slight growth of investment activity is a realistic scenario for the coming years.

EQUIPMENT MARKET

The European construction equipment sector saw sound growth of 10% in 2016. Building construction equipment experienced better demand than the civil engineering equipment sub-sectors. The market is at its highest level in five years, but still considerably below the pre-crisis record levels.

REGIONAL PERSPECTIVES

France and Germany were the growth poles in 2016. Most Northern and Western European markets are on very high absolute levels. However, the recovery of Southern Europe is still restrained, and growth in Central and Eastern Europe has come to a halt. After two extremely bad years, the Russian market recorded signs of recovery in 2016.

OUTLOOK

Against the backdrop of positive construction industry forecasts, European manufacturers are increasingly optimistic about equipment sales growth in 2017. Industry sentiments have experienced a strong upturn, and most countries and regions are seen positive. World construction equipment sales are expected to see substantial sales growth after three consecutive years of decline. Sales in Europe should see a slight single-digit increase.