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Germany & bauma

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On strong ground

Despite a drop in figures last year, Germany is back on track to becoming one of the top exporters of construction equipment and building material machinery to the Middle East.

01 March 2013

GERMANY continues to rank among the top exporters of construction equipment and building material machinery to the near and Middle East, having sold goods worth €4.72 billion ($6.297 billion) within the first nine months of 2012, a significant increase over figures achieved during the same period in the previous year. The sector is expected to hold its ground this year, matching the levels achieved last year.

The construction equipment and building material machinery sector accounted for 19.9 per cent of total exports for the first three quarters of 2012, which were worth a total of €23.716 billion ($31.631 billion).

Overall in 2012, the German construction equipment and building material machinery industry generated €12.5 billion ($16.66 billion) in turnover, according to statistics released by the Construction Equipment and Building Material Machinery Association (Fachverband Bau- und Baustoffmaschinen), a sectoral association within the German Engineering Federation (VDMA).

Construction equipment accounted for the lion’s share of this amount at €7.9 billion ($10.53 billion), while €4.6 billion ($6.13 billion) was earned through building material, glass and ceramics machinery exports.

“This is a nominal decrease of around one per cent compared to 2011. After having seen an upturn following the 2009 economic and financial crises, the industry is now moving steadily on this decent level it managed to achieve again in 2012,” says a spokesman for the association.

According to figures for 2011, Germany was also the second largest exporter of machinery to the near and Middle East with 13.8 per cent of the market share, after China which secured 14.8 per cent of the share. Other major exporters to the region included Italy, the US, Japan and Korea.

In 2011, German machinery exports to the near and Middle East were worth €5.86 billion ($7.812 billion). In the GCC region, 25.3 per cent of its export went to Saudi Arabia followed by 18.7 per cent to the UAE, 5.2 per cent to Oman, 3.2 per cent to Qatar, 2.9 per cent to Kuwait and 1.6 per cent to Bahrain.

The construction equipment and building material sector accounted for 10.3 per cent of the total machinery exports, followed by material handling technology (9.3 per cent); power systems (7.2); valves and fittings (6.4); compressors, compressed air and vacuum (5.4); food processing and packaging machinery (5.3); air-handling technology (4.7); pumps (4.6); process plant and equipment (four); power transmission engineering (3.4); printing and paper technology (3.1); plastics and rubber machinery (three); mining equipment (2.8); and machine tools (2.8).

Reflecting on the results for 2012, Johann Sailer, chairman of the industry’s association, says: “Although, on the whole, times are difficult, last year was a good year for our industry.”

According to him, 2013 will not see any peaks either.

However, he says that companies belonging to the industry are currently highly optimistic in light of this year’s bauma, which takes place next month (April 15 to 21) in Munich, Germany. “This event, which takes place every three years, in itself has always inspired new business opportunities. It also is the number one indicator for upcoming market trends. It is only here (at bauma) that investors can gain such a comprehensive and full overview of the current state of technology and see for themselves the kind of construction equipment, building material and mining machinery which is on offer,” comments Sailer.

Although, the number of orders for German construction and building machinery that came in the fourth quarter 2012 do not indicate any growth, Sailer anticipates an increase of demand in the second half of the year and expects the sector to achieve the sales levels achieved last year.

While prospects for the construction equipment and building material machinery industry are not as bright as they have been in the past, Germany believes its market share will remain stable with growth anticipated in the less traditional markets “which many of us might not really have been considering yet”, says Sailer.

The VDMA, with its 3,000 members, is the largest industrial federation in Europe. The Construction Equipment and Building Material Machinery Association represents the interests of some 300 companies that manufacture machinery and facilities for the construction, building material, natural stone, ceramics and glass industries.

Link for the German Manufacturers Orders and Sales:

Link for the Key Machinery Exports to Near and Mideast:

Linkd for the GCC share in exports to Mideast: