The Finnish construction equipment market is expected to grow 14% between 2016 and 2020, according to a new report from specialist consultant Off-Highway Research. Unit sales of construction equipment are expected to hit 2,040 machines this year, a 4% increase on 2015 levels, and then continue to climb to 2,317 units by 2020.
The recovery began last year, with equipment sales bouncing back to 1,962 machines, following declines in 2013 and 2014. The forecast rebound to 2,040 machine sales this year will take the market back to levels last seen in 2012.
However, the report warns that while the Finnish market looks ripe for growth, economic and political uncertainty means there is inevitably uncertainty over the forecast for equipment sales growth. A key concern are the ongoing talks between unions, employers and governments over a far-reaching agreement on pay and working hours.
“The best that can be said is that the market is primed for expansion, even if the exact moment at which that expansion will start is impossible to predict. The current volume of sales is at a historically low level, and the working population of machines has reduced as the sources of grey imports have dried up and old machines have been exported. The forecast represents the middle line in a range of outcomes that could see anything from growth returning rapidly this year (initial signs are promising) to further stagnation as long as the political impasse persists,” the report said.
With these caveats in place, Off-Highway Research forecasts growth across all equipment types over the next five years apart from the low volume dozer segment. Of the more mainstream earthmoving equipment types, growth is expected to be strongest in the backhoe loader, telehandler and wheeled loader segments, while growth in excavator and mini excavator sales are forecast to be well below the market average of 14%.
Off-Highway Research’s 104 page country analysis on Finland is part of the company’s European Service, details of which are available here. The report can also be bought separately from the company's E-commerce store.