Turnover forecast for 2007 raised to +15%

VDMA construction equipment and building materials machinery

According to the latest estimates by the German Engineering Federation (VDMA), the German construction equipment and building materials machinery industry is currently on its way to reaching a turnover equalling 13.6 billion euro. This would be 15% more than in 2006. Of this total, 10.7 billion euro would be achieved with construction equipment and 3.5 billion euro with building materials, ceramics and glass machinery.
“The reason why the economic situation currently is so good is mainly due to the fact that export sales increased by 13.6% compared to the previous year. This was totally unexpected”, said Dr. Peter Hug, Deputy Managing Director of the construction equipment and building materials machinery industry association. Exports currently account for about 70% of the total revenue of the industry. Domestic sales are also on the increase. In this area, Hug is expecting an increase for the entire industry of nearly 19%. Hug assumes that soon the number of planning permissions in Germany is also likely to go up again as a result of the increasing growth of the entire domestic economy. This will then stimulate sales in construction equipment and building materials machinery as well.
Due to the enormous demand this industry is currently witnessing, production capacities are fully utilized at the moment. The companies are experiencing problems particularly with ensuring supplies and finding the relevant qualified personnel.
For 2008 the association of construction equipment and building material machinery also predicts an increase of between 5 and 10%. The construction boom in important sales markets like Europe, especially Russia, but also India, will continue to develop in a positive way in the medium term. However, growth in China is expected to ease off according to estimates by the industry’s association. The downturn in the USA is likely to continue.