WorldWide Drilling Resource

20 OCTOBER 2015 WorldWide Drilling Resource ® German construction equipment manufacturers are more optimistic at the middle of the year than they were at the beginning - "even though uncertainty is the largest obstacle for us at present," said Johann Sailer, chairman of the VDMA (the Construction Equipment and Building Material Machinery Association of the German Engineering Federation). There has been double-digit growth in turnover by member companies throughout the sector in the first five months. Despite a damper in May, construction equipment manufacturers are correcting their forecast upwards for 2015, some believe an increase in turnover of 4% is achievable. Building material facility manufacturers, however, are more sceptical. Many companies are on schedule, but large-scale orders are rare and fiercely competitive. "We therefore expect only to break even in 2015," explained Sailer. Construction equipment sales in Europe and North America have grown significantly in the first five months of the year despite the fact the Russian market is in free fall, recording a decline of around 70%. Even France, once the second largest construction equipment market in Europe, is suffering a pronounced downturn with an above-average decline of 19% compared with the previous year. The drivers of business are the UK, Scandinavia, and Germany. This year, manufacturers are expecting new momentum from Poland, and southern Europe is slowly catching up. Nonetheless, Europe still has a recovery process ahead of it, "this is of central importance to us construction equipment manufacturers," stressed Sailer. The North American construction equipment market is doing well and has already reached the precrisis level of 2006. Therefore, the sector expects development next year to be rather flat. Good growth is coming from Saudi Arabia and the Emirates. However, China, India, Southeast Asia, and Latin America in particular, are falling short of expectations. When categorized by product group, there are significant differences in development. While demand for earthmoving machinery is somewhat disappointing - heavy machinery in particular currently has few customers due to the global mining crisis - the trend is continuing upwards in concrete technology. The current situation is still good in road construction machinery. Companies today are looking forward to 2016 with optimism. Every three years, the world’s leading trade event for the industry, bauma, facilitates new investments from around the world. Don’t miss your opportunity to participate in the upcoming bauma event in Munich, Germany, April 11-17, 2016. According to Chairman Sailer, German construction equipment manufacturers aremore optimistic than they were at the beginning of the year. Construction Equipment Forecast Looks Good Adapted from Information by the VDMA Association +*/ * /"- "(( -&(("-. ..+ & /&+* ../ **0 ( +*1"*/&+* " -0 -3 &((&*$. +/"( +*1"*/&+* "*/"- &((&*$. +- )+-" &*#+-) /&+* +*/ / 1&! %0("* "-$ ) &( +*/ /0. )22! +-$ 222 )22! +-$ 0 '" / /+ % *$" " -0 -3 /% ) &'% ' "! & # !& ) !' ' "! !& ) " ! "%! ! !!"(! !'& ) ) +!"' ! + ) ++* ! %& ++* ,) * ' ""% # ! ,) " ' "(% ,) ,) !$( ' ) % % & !' ' "!& ! "! (& "! " !' ( ' "! ,) ,) & !" ' " -0 -3 /% ) ) % &' ! !!( ' ! ) ) ! %& ,) " % " % '"%& ' ! " -0 -3 -! ++* ,) * '"% ' # ,) ,) &'% ' "! & # !