German equipment manufacturers see +1% rise

By Chris Sleight15 February 2013

Johann Sailer, chairman of the German Engineering Federation's Association for Construction Equipmen

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

Sales of German-made construction equipment and building materials machinery rose +1% last year to 12.5 billion (US$ 16.6 billion) according to data from the German Engineering Federation (VDMA). With the industry’s order intake tracking at a similar level to sales, the VDMA says it expects revenues in 2013 to be similar to 2012.

Construction equipment sales by German companies totalled € 7.9 billion (US$ 10.5 billion) last year. Some € 2.4 billion (US$ 3.2 billion) of this was sold domestically, while € 5.5 billion (US$ 7.3 billion) worth was exported.

“Although on the whole times are difficult, last year was a good year for our industry,” said Johan Sailer, chairman of the VDMA’s construction equipment and building machinery division.

The VDMA said that within Europe, there was a growing North-South divide in terms of the health of the markets. “It is impossible to predict if and when the construction industries of Spain, Portugal and Greece will finally pick up again. Germany has been and probably will remain stable in this regard. It seems most likely that growth will be generated in less traditional markets,” it said in a statement.

It highlighted resource-rich countries such as Indonesia, Mongolia, Myanmar and regions such as Southern Africa as areas of potential growth. Mr Sailer acknowledged that these were areas, “which many of us might not really have been considering yet.”

The VDMA also said that any growth in orders was likely to come in the second half of the year.

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