2023, a year of transition for the European construction equipment industry

• Annual Economic Report & tailor-made video released

• 2023: Two halves - stability in the first, decline in the second

• 2024 marked by uncertainty and a rather negative business sentiment

"In the face of global economic challenges, I remain cautiously optimistic about the possibility of a smooth landing for the economy in 2024-2025. While the Eurozone has experienced setbacks, including the impact of the war in Ukraine and inflationary pressures, I believe that prudent decision-making and concerted efforts can mitigate risks. By focusing on stimulating investment and fostering innovation, Europe can navigate through these challenges and pave the way for sustainable growth and prosperity.” With these words CECE President Jose Antonio Nieto set the scene for the Market Update event launching the 2024 CECE Annual Economic Report.

Performance 2023
The European construction equipment sector experienced a year of transition in 2023, marked by significant challenges amidst a severe downturn in the building construction industry and increased geopolitical crises. Despite facing headwinds, the industry demonstrated resilience with relatively stable sales on the European market, albeit with notable differences across sub-segments and regions.

Overall, sales of construction equipment in Europe declined by 10% in 2023, following a period of very high absolute levels. The decline was primarily attributed to a downturn in road machinery, particularly light compaction equipment, which saw sales fall by 21%. Earthmoving equipment and concrete equipment maintained stable performances, with minimal 1% growth in sales. With growth in sales of 16% in Europe in 2023, tower cranes were the strongest performing of the construction equipment sub-sectors. However, this is solely attributable to the one-off effect in Turkey, where reconstruction efforts after the earthquake pushed tower cranes sales significantly. If Turkey is excluded, sales of tower cranes in Europe were down by 27% in 2023.

Outside of Europe, growth in key export markets like North America and the Middle East helped European manufacturers improve their overall business performances despite the challenging market conditions in 2023.

Outlook 2024
Looking ahead, the outlook for 2024 remains uncertain, with cautious optimism tempered by ongoing challenges. The European market is expected to face further declines, particularly in the building construction equipment segments, amidst economic uncertainty and geopolitical threats. However, opportunities in global export markets may provide some respite for European equipment manufacturers, with North America remaining a key focus.

About the Report – together with a short summary in a video
The CECE Annual Economic Report contains sections on the macro-economic situation, the performance of the construction sector, the main markets, and main segments of the European construction equipment industry, including the mining industry. The report also includes information from the national CECE member associations, shedding more light on regional developments in the European construction equipment sector. This year, the report highlights another important client sector in Europe, featuring an interview with the Secretary General of ELCA, the European landscape contractors association.

The full report with detailed figures and graphs can be viewed and downloaded here. The video animation can be viewed here. Also, please follow this link to access the slides from the CECE Market Update event presenting the report. You can listen to the recording of the event here.

Click here to download the press release.