Strong demand for construction machines is being reported by the German equipment manufacturing association, the VDMA. Its report says that following a good start to 2017, the upward trend has continued for the construction and building equipment industry. The VDMA analysis says that the sector expects to increase its total turnover by 5% by the end of the year to around €14.6 billion.
Business levels have exceed predictions, especially for construction equipment manufacturers, both in Germany and on the international markets. This is true for all sub-sectors, namely earthmoving, civil engineering, tunneling, building and road construction machines. In addition to the good business development in Europe during the past years, demand is now also picking up in world regions that have performed weakly in recent times, such as China or Russia. While the strong market has been helpful to revenue for manufacturers, some firms are now seeing bottlenecks developing in supply chains.
“The unexpected significant good business development is good for us,” said Johann Sailer, chairman of the Construction Equipment and Building Material Machinery Association of VDMA (the German Engineering Federation). However, he cautioned against excess optimism. In view of the general political and economic climate, the situation could take a turn at any time. “The growth forecast of plus 5% is not cast in stone.”