The markets for German manufacturers in this sector have seen a prominent geographical shift. The example of earth-moving machinery highlights this. In 2005, the market in India and China which was 3 per cent and 18 per cent respectively, exploded to 6 per cent and 52 per cent, writes Rajesh Nath.

Till mid-2011, the German construction equipment and building material machinery manufacturers achieved 18 months of continuous and consistent growth. In the first nine months of 2011, the turnover of the German manufacturers in this sector increased by 23 per cent. The construction equipment manufactures achieved a growth of 29 per cent, driven largely by the growth of 31 per cent in exports and domestic market growth of 22 per cent. The building material machinery manufacturers achieved a growth of 8 per cent in the same period.

As per the present prognosis, the branch would see a combined growth of 20 per cent in 2010. The construction machinery growth in 2010 would be 25 per cent to attain a value of 7.8 billion Euros. The building material machinery growth in 2010 would be 10 per cent to reach a value of 4.7 billion Euros. Due to this, the combined turnover would touch 12.5 billion Euros.

Forecast for 2012

The emerging markets would continue to invest in the infrastructure sector. This would trigger the requirement of construction machinery.

The Asian and Latin American market including the Central European market, should help to achieve a growth of 5 per cent for German construction equipment as well as building material machinery in 2012.

The markets for the German manufacturers in this sector have seen a prominent geographical shift. The example of earth-moving machinery highlights this. In 2005, whereas North America and Europe constituted 48 per cent of the world market for earth-moving machinery, in 2010 the share has shrunk to 25 per cent. In the same period, the market in India and China which was 3 per cent and 18 per cent respectively, exploded to 6 per cent and 52 per cent respectively.

The recent study conducted by Roland Berger shows that the BRIC countries would constitute the important user markets for construction equipment.

With the world now a global village, it is important for the German manufacturers to have a local presence. The customers in the emerging markets demand quick response and good service. Further, the availability of information and statistics, makes business in foreign markets now an easier option.

The direction adopted by the German manufactures in this sector is innovative technology, good quality and efficient service. This makes them market leaders in various sectors and gives a strong foundation for success in emerging markets.

European Construction Machinery Manufacturers

Located in Brussels, CECE is the national association of the European Construction Machinery Manufacturers. Around 1,200 companies from 13 countries having a combined turnover of more than 20 billion Euros and employing (directly and indirectly) around 5 .5 lakh people are represented at CECE.

In 2012, Johann Sailer, who was recently elected as the Chairman of the German Construction Machinery and Building Material Machinery manufacturers (VDMA), will take over as the President of CECE.

As per the new European regulation IIIB for flue gas, the requirement for cleaner emission has put forth new challenges for the European construction machinery manufacturers. The manu?facturers have been working hard on technological development for emission reduction. In fact the new mobile machines that fulfill the Stage IIIB requirements, when compared to 15 years earlier, have already attained:

• 97 per cent reduction of particulates.
• 85 per cent reduction of hydroc?arbons.
• 78 per cent reduction of nitrogen oxides.

The European manufactures are striving for:

1. Efficiency enhancement due to optimisation of engines, hydraulic, tyres and control technology.
2. Optimisation of the working practices through recycling of construction material at site itself, approximately 400 tonne of CO2 reduction is possible because the to-and-fro movement of trucks carrying the construction material can be prevented. Further usage of cold recycler for road construction saves usage of five machines for the same application.
3. Improving efficiency of operation with better training of the operator. Practical experiences show that 25 per cent of fuel can be saved if the operator uses the earth-moving machinery in an optimal way. This reduces around 500 T of CO2 production.
4. Options of alternative fuels like bio fuel, hybrid or electrical drives.

Green procurement would be the future motto for the customers; customers who pro?cure the energy-efficient and environ?mentally friendly machines will have an advantage over their competitors.