+
German construction equipment industry continues to grow
Company News

German construction equipment industry continues to grow

The order intake in the construction equipment (CE) industry allows manufacturers with production sites in Germany to look forward to 2022 with peace of mind. When companies will be able to achieve turnover, on the other hand, is an open question, as materials continue to be in short supply and supply chain problems are delaying the production of CE. The statistics clearly show a gap between incoming orders and turnover.

In 2021, the construction machinery and building material plant sector achieved a 22-percentage increase in turnover of 16.7 billion Euros compared to the same period of the previous year. The CE sector achieved a nominal increase of 18% to 12.4 billion Euros. Incoming orders were up 53%. Export turnover was 8.1 billion Euros; domestic turnover was 4.3 billion Euros. It is gratifying that building construction, earthmoving and road construction machinery show a homogeneous distribution.

Road construction machinery achieved the highest increase in turnover with 22%. This development catapults the industry back to the record level of 2018-19. Nevertheless, expectations for turnover are cautious this year. The biggest risk, in the experience of many manufacturers, lies in the ongoing disruptions to supplies.

“We are pushing a wave of orders ahead of us that we will probably have to carry into 2023 if the situation remains like this,” fears Joachim Strobel, chairman of the VDMA's CE division. “Despite full order books, the industry can only expect a maximum increase in turnover of 7% for the current year. Profit will also fall short of our expectations because we have to contend with enormously increased costs.”

The USA, Europe and China remain the most important market regions and together account for 75% of the global market. CE sales in 2021 increased by 30% in the US and 28% in Europe compared to the same period last year. China weakened with a 7% decline. Globally, sales rose 18% overall, 32% excluding China. Nevertheless, the country remains the largest single market.

The US market is promising for the next few years. Thanks to extensive economic stimulus programmes, golden times could dawn for the construction sector in the US. In Europe, too, the economic stimulus programmes launched in the pandemic will have a supporting effect in the next two to three years. In China, the development is uncertain; the risk of a real estate crisis is still present.

In Germany, sales of CE rose by almost 10% last year, and demand from the customer industries remains high in the current year. This boom will even be able to defy the shortage of skilled workers and material bottlenecks.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The order intake in the construction equipment (CE) industry allows manufacturers with production sites in Germany to look forward to 2022 with peace of mind. When companies will be able to achieve turnover, on the other hand, is an open question, as materials continue to be in short supply and supply chain problems are delaying the production of CE. The statistics clearly show a gap between incoming orders and turnover.In 2021, the construction machinery and building material plant sector achieved a 22-percentage increase in turnover of 16.7 billion Euros compared to the same period of the previous year. The CE sector achieved a nominal increase of 18% to 12.4 billion Euros. Incoming orders were up 53%. Export turnover was 8.1 billion Euros; domestic turnover was 4.3 billion Euros. It is gratifying that building construction, earthmoving and road construction machinery show a homogeneous distribution.Road construction machinery achieved the highest increase in turnover with 22%. This development catapults the industry back to the record level of 2018-19. Nevertheless, expectations for turnover are cautious this year. The biggest risk, in the experience of many manufacturers, lies in the ongoing disruptions to supplies.“We are pushing a wave of orders ahead of us that we will probably have to carry into 2023 if the situation remains like this,” fears Joachim Strobel, chairman of the VDMA's CE division. “Despite full order books, the industry can only expect a maximum increase in turnover of 7% for the current year. Profit will also fall short of our expectations because we have to contend with enormously increased costs.”The USA, Europe and China remain the most important market regions and together account for 75% of the global market. CE sales in 2021 increased by 30% in the US and 28% in Europe compared to the same period last year. China weakened with a 7% decline. Globally, sales rose 18% overall, 32% excluding China. Nevertheless, the country remains the largest single market.The US market is promising for the next few years. Thanks to extensive economic stimulus programmes, golden times could dawn for the construction sector in the US. In Europe, too, the economic stimulus programmes launched in the pandemic will have a supporting effect in the next two to three years. In China, the development is uncertain; the risk of a real estate crisis is still present.In Germany, sales of CE rose by almost 10% last year, and demand from the customer industries remains high in the current year. This boom will even be able to defy the shortage of skilled workers and material bottlenecks.

Next Story
Real Estate

Maharashtra to Revise Infrastructure Policies

The Government of Maharashtra will make every possible effort to frame infrastructure-related policies, including those that promote housing in the state, in line with changing requirements. This assurance was given by Mrs. Meghana Sakore Bordikar, Minister of State, Government of Maharashtra, while addressing the two-day NAREDCO 17th National Convention, “India Builds: Reimagining Growth through Real Estate and Infrastructure”. At the convention, Dr Niranjan Hiranandani, Chairman of NAREDCO, called for a new blueprint for infrastructure policies in the present context.The Minister assured..

Next Story
Real Estate

Agami Realty Enters Mumbai's Luxury Market

Agami Realty, a leading real estate developer with a legacy of over five decades, has marked its foray into Mumbai’s luxury residential market with two significant redevelopment projects in Bandra, valued at an estimated Rs 9.5 billion. The company, known for its boutique developments that blend sustainability, technology, and design excellence, has already received a strong response to its Bandra offering.Agami Eternity, the firm’s first completed premium redevelopment project in Mumbai, recently received its Occupancy Certificate. Located in Bandra East, the project was designed by inter..

Next Story
Real Estate

Hafele Launches Its Third Licht Experience Centre in India

Hafele, a global leader in interior solutions, has announced the launch of its third Licht Experience Centre in Ahmedabad. This new centre, located at 302, 31 Five, Opp. Palladium, Corporate Road, Makarba, follows the successful openings in Chandigarh and Indore, further strengthening Hafele's footprint in India. The name “Licht,” which means “light” in German, captures the essence of this experience, where technology meets aesthetics to redefine interior spaces.The Ahmedabad Licht Experience Centre was inaugurated by Mr Frank Schloeder, Managing Director of Hafele South Asia, and Mr P..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?