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Following a good start to the year, the upward trend has continued in the German construction equipment and building material machinery industry, said the VDMA (the German Engineering Federation).

It reported that the sector expected to increase its total turnover by 5% by the end of the year, to around €14.6 billion.

Business was said to have been much better than expected at the beginning of this year, especially for construction equipment manufacturers, both in Germany and on international markets.

This was true for all sub-sectors, it said, including earthmoving, civil engineering, tunnelling, building and road construction machines.

In addition to the good business development in Europe over the past few years, demand was found to be picking up in world regions that had performed weakly recently, for example China and Russia.

Companies in the industry were said to be pleased about this push, but were aware that it also presented new challenges for them. Some of them reported that they already had supply bottlenecks on the supplier’s side.

After a weak 2016, building material manufacturers were now said to be enjoying a considerable upturn of business, mainly from Germany and Central Europe.

The VDMA said that the sector was still a long way from the good levels it had achieved in the years leading up to 2012, adding that stronger sustainable business development in the building machinery sector was not expected until 2019.

Johann Sailer, chairman of the German Engineering Federation's Association for Construction Equipment & Building Material Machinery (VDMA Bau- und Baustoffmaschinen).

Johann Sailer, chairman of the German Engineering Federation’s Association for Construction Equipment & Building Material Machinery (VDMA Bau- und Baustoffmaschinen).

Johann Sailer, chairman of the Construction Equipment & Building Material Machinery Association of the VDMA, said, “The unexpected significant good business development is good for us.”

Speaking at the association’s board meeting, held recently in Coburg, he cautioned against excess optimism, though. He felt that 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 therefore not cast in stone,” he said.

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