The German manufacturing sector in the construction equipment segment recorded a turnover of EUR8.4 billion in 2014, which was higher by 8% as compared to last year. However, this turnover is the same as it was in 2006.
According to Managing Director of Liebherr EMtec GmbH and, Deputy Chairman of the Construction Equipment and Building Material Machinery Association of the German Engineering Federation (VDMA), Mr. Joachim Strobel stated turnover and profit are two separate things in this equation.
Germany has made huge investments to meet the new exhaust emissions regulations imposed by Europe. In this year, the construction machinery industry in Germany is expecting to cash in on sideways trend since the businesses are offering good prospects to equal out.
He further added that there are no immediate threats to the manufacturers in the industry, however, there continues to be am ambiguity related to long-term planning. Earlier, plans were made depending on 7-year cycles. But today, this has become a thing of the past.
Last year there was strong growth trend in spring, but a slump in the summer with a complete change in the situation as the year came to a close. The industry received 7% higher order than what it did in 2013. Maximum business was seen in the road construction equipment and earth-moving, while large equipment suffered a decline in the global mining industry. Furthermore, the building construction machinery sector is slowly recovering, but continues to be 50% less than what is used to be in the prime years.