Equipment sales set to increase

Sales of earthmoving equipment in Europe will increase by 3% this year, while European production is expected to rise by 5%, according to the Committee for European Construction Equipment (CECE).

Based on firm orders from the leading equipment manufacturers, the CECE estimates that the five major European markets for earthmoving plant will all report an increase.

The CECE said, although the outlook is positive, the market will slow down slightly compared to last year.  

In 2004, the UK and France led the way and reported sales increases of 11% and 14% respectively. This year the countries are expected to show a more modest increase of 4%.

Meanwhile, the improving German economy will boost sales by 3%, with the Italian and Spanish markets also growing by the same margin.

Last year, Europe accounted for 27% of all worldwide shipments of earthmoving equipment, while 24% went to the Far East, and 39% ended up in the booming North American market.

The CECE is predicting a similar scenario for 2005, and said the Chinese market will stabilise and possibly grow meaning an increase in Asian shipments.

JCB has backed up the CECE predictions and announced plans for an £11m Shanghai manufacturing plant to spread production into the expanding Asian arena. The company said most markets it is in will be increase this year.