CECE: Russia is a growth engine for Europe

The Russian construction equipment market is one of the growth engines for Europe, according to the Committee for European Construction Equipment (CECE).

It said government and private projects in the oil and gas industry, infrastructure and housing sectors were stimulating demand.

CECE secretary general Ralf Wezel said that compared to other markets in Europe, Russia was doing well for the European construction equipment industry.

Speaking during the CTT trade show in Moscow, Russia, Mr Wezel highlighted the fact that one out of three tower cranes produced and sold in Europe are currently going to Russia. Building hoists, truck mixers, concrete batching plants, mixing systems and concrete pumps are also most sought after. However, sales of road equipment have decreased considerably in the first quarter of this year.

“Despite this, Russia remains one of the growth engines for our industry,” Mr Wezel said.

CECE and Russian member association AEB also used the show to re-iterate their support for the equal treatment of all manufacturers. At the moment in Russia, non-Russian companies are currently suffering from the disposal fee that the Russian government imposed in September 2012 –charges which apply to each wheeled vehicle imported to Russia or manufactured in Russia, according to CECE.

CECE and AEB are currently working with Russia’s Ministry of Trade & Industry with a view to amending the legislation and developing a more balanced approach.

Andrey Komov, chairman of the AEB construction equipment committee, said, “We hope that the Russian Government takes into consideration the AEB recommendations and corrects shortcomings of the resolution on the recycling fee with respect to the construction equipment industry.”

European situation

Meanwhile, looking elsewhere in Europe, CECE said sales of earthmoving and road equipment dropped between 20 and 30% year-on-year in some southern European countries during the first three months of 2013.

Back in 2007, the combined market share of Portugal, Spain, Italy and Greece accounted for almost 25% of European sales, but by 2013 this had dropped to 3.5%.

CECE said building construction equipment was the only sub-sector where slight growth could be seen at the moment, although this growth is only coming from regions like Russia, Scandinavia, Turkey or Germany.

Nevertheless, the situation is expected to improve significantly in the second quarter of this year. CECE said construction equipment manufacturers reported good order intake in the wake of April’s Bauma trade fair in Munich, Germany – the largest construction machinery show in the world.

“However, even under an optimistic scenario with good growth in the next quarters, it will be difficult to compensate the early deterioration over the year, particularly for earthmoving and road equipment,” CECE said.