The Western European construction equipment market is tipped to grow 3% this year taking demand to over 165,000 units – the highest annual level in the decade since the global economic crisis.
The 2018 forecast by Off-Highway Research (OHR) follows the far more impressive 26% rise in construction equipment demand in 2017. OHR predicts a moderate 1% decline in demand for 2019, but this “should be seen as the market stabilising at a historically high level.”
OHR notes that in 2017 the construction equipment market enjoyed the rare phenomenon of all 15 of the individual countries considered in its report growing. The major global industry market research firm says this rare occurrence indicates broad buoyancy in the European market. At the current level of 160,000-165,000 unit sales, OHR argues that European demand is as strong as it can be without overheating.
Although demand rose across the board in 2017, OHR highlights that is was the major markets of France, Germany, Italy and the UK which were the key overall influencers, as they currently account for 74% of European equipment sales.
OHR states that demand for construction equipment has plateaued at a high level in most of the Northern and mid-European markets. The firm continues: “The coming years are expected to see a gradual decline in annual sales, but at this stage no sharp downturn is forecast. The caveat to this is that Brexit could have a serious destabilising effect. However, with the future terms of the relationship between the EU and UK yet to be decided it is impossible to quantify the potential impact.
“Meanwhile, continued growth in Southern Europe – most significantly Italy – should partially offset the declining sales further North. This should see overall European equipment demand maintained at strong volumes 1-2 years at least.”
