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 - 2016 can be read and downloaded here.

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

 

Executive summary 2016:

CONSTRUCTION INDUSTRY

The recovery of the European construction industry continued in 2015, and civil engineering took the lead when it comes to growth rates. Further growth is anticipated for 2016, but there won’t be “sky-rocketing” rates of growth. CEE countries are the markets with the best prospects.

MINING INDUSTRY

Against the backdrop of low commodity prices and declining profitability, the mining sector is still suffering from declining investment levels, and is in a bad shape. No recovery is expected in 2016. This has severe implications for demand for equipment types used in the mining industry.

EQUIPMENT MARKET

The construction equipment sector saw singledigit declines in 2015, primarily attributable to the bad Russian market. However, during the year there were encouraging signs of improvements in demand. Building construction equipment experienced better demand than civil engineering equipment, earthmoving and road construction machinery.

REGIONAL PERSPECTIVES

As anticipated, Russia was the “trouble spot” in 2015. France also had a very bad year, but showed clear signs of stabilization towards the last quarter. CEE countries and Southern Europe were the pillars of growth, though from very different start points. Germany, the UK, and the Nordic Countries remained the anchors of stability.

OUTLOOK

The recovery in Southern Europe and CEE countries is expected to continue in 2016. However, no significant change is anticipated for Russia. With most of the volume markets set for stability, a slight increase in growth is the likely scenario for Europe overall. However, this is expected to achieve little more than offset the declines experienced in 2015.