At the beginning of this year, CECE (European Committee for Construction Equipment) released a report on the sales trends of construction machinery and equipment in the European Union, including Turkey, predicting minimal growth by the end of 2023 compared to 2022. Unfortunately, as you'll see from the summarized analysis, Romania is lagging behind in all rankings.

Excavation, Leveling, Loading, and Transportation Equipment:

In 2022, sales of earthmoving machinery in Europe (including Russia and Turkey) increased by 12%, reaching a level of 145,000 units, representing the highest sales volume since 2021. The strongest impetus in T1-2022 came from the French market.

Small equipment indicators (+13%) performed better than standard and heavy ones (+10%). This was mainly due to mini-excavators, whose sales in Europe increased by 14%. Mini-loaders recorded an even higher growth rate of 19%, although their sales volume is much smaller.

Sales of compact wheel loaders increased by 9%, but backhoe loaders saw a decline of 6%. Surprisingly, this decline was due to weak sales in many Central and Eastern European countries, including Poland, Romania, Bulgaria, and Hungary.

In the heavy equipment sector, rigid dump trucks (+40%) and wheeled excavators (+27%) were the best-selling categories. Sales of articulated dump trucks increased by 10%, pavers recorded a growth of 9%, and large wheeled loaders saw an 8% increase. Heavy excavators (+8%) represented the highest growth in terms of volume.

Road Equipment:

Sales of road construction equipment increased by approximately 10% in 2016. The dynamics were similar to the "Earth" sub-sector, with strong growth at the beginning of the year, some deceleration in the middle of the year, and a return to growth towards the end of the year.

Road equipment represented the sector with the strongest post-crisis recovery in Europe. In fact, road construction machinery might be the only sector that will reach record sales levels from 2007 again in the next two or three years.

Sales growth for standard and heavy equipment was particularly strong in 2022, at 13%. However, sales of asphalt pavers were less dynamic than compaction equipment, increasing by only 3%. Except for combined rollers and waste compactors, all types of self-propelled rollers showed solid growth.

The strongest growth in road equipment sales was seen in the Nordic countries, Benelux, and the French market. However, countries like Poland, the Baltic states, Bulgaria, Romania, and Slovakia saw significant declines in sales in 2022. This appears to be a combination of a weak economic climate and the fact that many EU-funded projects were completed or scarcely accessed, as is the case in Romania.

Concrete Equipment:

In 2022, building construction equipment continued the recovery that began in 2015 due to strong activity in residential and non-residential construction in many parts of Europe. This had a positive impact on the demand for lifting and concrete equipment.

Sales of concrete machinery in Europe increased by 21% in 2016. However, the dynamics were different compared to the Earth and Road sectors. The first half of the year saw strong sales growth of 40%, followed by a significant slowdown in the second half, with sales only 5% higher than in the same period in 2020.

The most successful product category in 2022 was concrete mixers, which recorded a 23% increase in sales. Sales of mixing systems, concrete pumps, and light equipment (saws and vibrators) also increased. However, sales of production plants decreased slightly. Sales of concrete equipment showed significant differences between countries in 2022.

The largest market, Germany, recorded moderate declines, being closely followed by France, which saw strong growth, while Italy continued its resurgence, becoming the third-largest market for concrete machinery in Europe. Other important markets, such as the UK, Austria, Switzerland, and the Nordic countries, also experienced moderate growth in 2022. In contrast, the Swiss and Italian markets declined, and the Turkish market slowed down. Sales of concrete machinery in Eastern Europe remain very weak.

What Does the Future Hold?

It remains challenging to predict where the European construction equipment industry will stand at the end of 2023. The list of uncertainties seems to grow: wars, major elections in European countries, unresolved political and economic crises worldwide, continued weakness in commodity prices, and a general challenge to open markets and free trade.

Moreover, it's difficult to assess how these issues will influence equipment demand. In this context, it's remarkable that the industry experienced growth in the first six months of the current year.

The CECE Business Barometer index hit a low point after the Brexit vote in the summer of 2016 but began to rise, reaching its highest value in February 2017.

For the European market, manufacturers interviewed in the CECE barometer are expecting a positive outlook, except for the Turkish market. The strongest sentiment is focused on Scandinavia, France, and Germany. Optimism is equally strong in all equipment sub-sectors.

For earthmoving, road, and concrete equipment, about two-thirds of manufacturers expect an improvement in business conditions. However, component suppliers are less optimistic, expecting business to remain unchanged in the near future.

In summary, stable construction equipment sales seem to be the most realistic forecast for Europe in 2024, with a low possibility of growth.