Material shortages and supply chain issues frustrate strong German demand for construction equipment in 2022
The German construction equipment market is mixed in 2022.
While orders for construction equipment remain healthy, the association, which represents more than 3,400 German and European mechanical engineering and plant companies, reports uncertainty over turnover as materials continue to be in short supply and supply chain issues are delaying the production of construction equipment.
“We are pushing ahead of us a wave of orders which we will probably have to carry until 2023 if the situation remains like this,” said Joachim Strobel, president of the construction equipment division of VDMA. “Despite well-filled order books, the industry can only expect a maximum revenue increase of 7% for the current year. Profit will also be below our expectations because we have to do in the face of extremely high costs.”
The VDMA says the US market is promising for the next few years. “Thanks to extensive economic stimulus programs, golden times could dawn for the construction sector in the United States. In Europe, the economic stimulus programs launched in the pandemic will also have a supporting effect in the next 2-3 In China, development is uncertain, the risk of a real estate crisis is still present there,” continues the statement from the Association.
In Germany, sales of construction equipment increased by nearly 10% last year and demand from customer industries remains high this year. The VDMA claims that this “boom” will even be able to challenge the shortage of skilled workers and material bottlenecks.
According to the VDMA, the priorities of construction equipment manufacturers are reducing CO₂ emissions and advancing digitalization. The association says there will also be key topics at this year’s major trade shows for the construction equipment and building materials plant sector. ceramitec in June, glasstec in September and bauma in October will present avant-garde developments. “We all look forward to our presence at trade shows. Finally, we can once again show on a large scale the technical progress we have already made to achieve the objectives of climate policy,” emphasizes Franz-Josef Paus, President of VDMA Construction.