European growth in a shaken quarrying world

All those connected to the world’s quarrying and aggregates industries were left shocked and deeply saddened by the needless and appalling massacre of 36 innocent Kenyan quarry workers by Somali al Shabaab militants on the morning of Tuesday 2 December 2014. It may not have happened in Europe, but, at times like that, the fact that the quarrying and aggregates trades are of huge global importance really hits home. I’m sure I echo the thoughts of all within our industries in expressing sincere condolences to the families of the deceased.

While preparing this issue of Aggregates Business Europe, I’ve also been preparing a comprehensive overview of key regional construction and quarrying equipment markets for Route One Publishing’s Global Report Construction Equipment 2015. It’s clear from the statistics and views of highly respected independent industry research firms, such as Off Highway Research (OHR) and Timetric, along with influential associations including the Committee for European Construction Equipment (7836 CECE) that construction and quarrying equipment sales grew steadily in 2014, and are tipped for further growth this year.  Indeed, OHR says that after 111,655 construction equipment unit sales in 2013, it is forecasting a 7% year-on-year rise in sales to 119,070 units in 2014. The firm forecasts a further 4% year-on-year rise in 2015 to 124,098 units.  While some European nations, such as the UK, are achieving bigger sales growth than others, the overall trend is highly encouraging.

Organisers of the 432 Intermat 2015 exhibition being held in Paris 20-25 April will have been lifted by Europe’s latest construction equipment sales growth figures. The triennial show is the biggest global construction equipment industry show of 2015, with many leading OEMs promising either launching exciting new machines or unveiling updated versions of existing proven models. There was notably more optimism over sales in and outside Europe at 2014’s biggest construction equipment show – 404 CONEXPO-CON/AGG in Las Vegas – compared to the mood at 386 bauma 2013 in Munich, Germany. As I’ve previously noted in this column, other key exhibitions, such as 427 Hillhead 2014 in Buxton, county Derbyshire, England attracted strong attendee numbers and encouraging sales leads for leading quarrying and aggregates sector equipment manufacturers.

The 1022 European Commission’s recent decision to allow the merger of cement giants 725 Lafarge and 680 Holcim, creating the world’s biggest cement maker with annual sales worth over €35 billion, will have huge implications for the cement industry. There had been much competition for various assets that both industry heavyweights had to sell off to satisfy anti-monopoly watchdogs. Now there will be great interest in the aftermath of the megadeal.

Given the continuing tensions between global superpowers following Russia’s military intervention in neighbouring Ukraine, this issue’s Market Report on the current and future quarrying and aggregates product and equipment market in Eastern Europe is certainly topical. The mineral rich and new infrastructure hungry nations within Eastern Europe have well publicised big growth plans, creating eye-catching opportunities for leading equipment manufacturers and aggregate producers and suppliers.

Remaining in Eastern Europe, this issue’s Quarry Profile looks at how a large fleet of 5013 Dressta wheeled loaders and crawler dozers are playing a key role in the success of one of Poland’s top sand and gravel suppliers.

Guy Woodford
Editor, Aggregates Business