Optimistic CECE outlook

16 March 2021

Feedback from construction machinery manufacturers suggests that the market in Europe could increase overall by 5% in 2021, with many expecting to return to pre-Covid sales levels during the year according to figures released during a CECE (Committee for European Construction Equipment) press conference last week. 

CECE president Niklas Nillroth said: “As we all know, 2020 was the most unexpected and unpredictable of years. From an economic point of view, it represented a year of disruptions with certainties and forecasts crumbling before our eyes. 

“However, the construction and industrial sectors in Europe have shown a great amount of resilience and capability to rebound quickly, limiting the damages of the first semester,” he said. “The foreseeable boost in construction and infrastructure activities from the European Recovery Plan represents another reason to remain optimistic for the near future”

Riccardo Viaggi, CECE secretary general, said that optimism amongst manufacturers was at its highest level for many years. 34% of survey respondents believe that their output will return to pre-pandemic levels this year, and 49% expect to achieve this in 2022.

A common concern is the supply chain, with delays being experienced in transporting engines and other components from Asia to Europe following the widely reported container shipping disruptions. However, 33% of manufacturers report full order books for the next three months. 

Looking further ahead, Riccardo Viaggi wondered whether the reintroduction of austerity measures in some countries might slow the pace of recovery, although this might be outweighed by the scale of central government support packages to date. 

He also suggested that a trend towards more home working could reduce demand for urban office developments.