New data from the Committee for European Construction Equipment (CECE) has revealed that the European construction equipment industry is expected to recover slowly.
The CECE has released its annual economic report which shows the European construction equipment market is down by 19 per cent in 2024. The decline follows a slowdown in activity in 2023 due to the high construction costs, persistent inflation and rising interest rates.
“The current geopolitical environment is creating changes and uncertainty in Europe’s macroeconomic conditions,” CECE president Jose Antonio Nieto said at the report’s presentation.
“It is still too early to know precisely if the new investments in defence will also spill over positively in the heavy machinery sector and how the renewed German investment potential in infrastructure will have a positive effect in overall construction spending.”
The key sectors of logistics and industrial construction remained stable overall which has been supported by supply chain infrastructure.
The report highlighted a slowdown in residential construction especially in the German, French and Swedish markets in 2024. The report attributes this trend to high-borrowing costs and overall consumer confidence.
The CECE expects this to shift slightly as it forecasts a slow recovery from 2025 onwards. This organisation said this will be driven public investments, green policies and major infrastructure. Continued European Union funding for energy transition projects is expected to foster infrastructure spending while lower interest rates and improving economic conditions will support demand. Labour shortages and material costs present ongoing issues according to the CECE but digitalisation and sustainability initiatives present long-term growth opportunities.
