Construction equipment market is more and more heading towards emerging economies.
A San Francisco Chronicle article on GIA report “Construction Equipment: A Global Strategic Business Report” highlighted a positive trend towards emerging markets, namely Brazil, China and South-Eastern Asia. The main reasons for the increasing demand is obviously connected to the rapid urbanization process which such regions are witnessing.
More specifically China will lead the group and will account for a major portion of the global construction equipment industry, however India, South Korea and Indonesia will experience a growth in demand as well , representing great potential for such market. Moreover, also Japan, after one of the worst natural disasters in recent history, is currently in the middle of a reconstruction process and the market is expected to witness high growth in the near future.
According to the report, the period ranging from 2011-2018 is expected to witness an increasing demand for construction equipment including, excavators, cranes and loaders.
Concerning Europe which is currently experiencing a deep crisis, future perspectives are not bright. The uncertainty created by Europe’s debt crisis is impacting growth especially in Italy and Spain. Investments in the construction sector in Europe have declined by over 8.0% beginning from the year 2008, new residential construction has shrunk by over 30% from the peak witnessed in 2006, while non-residential building contracted by 18% during the same comparable period.
However, some positive signs can be also found , Eurostat, the statistical office of the European Union, reports that construction output in 2010 increased the most in Romania and Poland, confirming the positive trends of Central/Eastern European Markets. (Source : careerstructure.com)