bauma – the 29th international trade fair for construction machinery, building material machine, mining machines, construction vehicles and construction equipment – is fully booked and this is, in light of all negative trends, a positive sign. The fair is becoming an important indicator of the situation the industry finds itself in. Many exhibitors are facing drastic drops in demand and turnover. According to Dr. Christof Kemmann, Chairman of the VDMA Construction Equipment and Building Material Machinery Industry Association, measures to reduce cost are therefore vital. Simultaneously, they have to prepare for the time after the crisis. Dr. Kemmann expects bauma 2010 to more than underline once again its reputation of being a trade fair for innovations. More than 200 applications for the bauma Innovation Award 2010 have already given a foretaste of this.
Construction equipment and building material machinery – Drop in sales and capacity utilization in 2010
As regards incoming orders, the German companies belonging to the construction equipment and building material machinery industry are slightly optimistic at this early point in time. The lowest point seems to have been reached in the course of 2009. Throughout the entire year, the amount of incoming orders and industry-wide sales dropped by about 50% on average. Due to this, the current volume equals that of 2005. The decreasing number of orders in construction equipment and building material machinery throughout 2009 will still have a delayed effect in 2010 as lead times have become significantly longer also. Many manufacturers will have to face decreasing sales and capacity utilization.
Mood brightening up – Long-term prospects worldwide are positive
The current business climate index and the business barometer of VDMA‘s European umbrella organization CECE give cause for hope. The majority of companies expect that their business activities will pick up again. This trend is supported by the fact that most companies saw more incoming orders already by the end of last year. A slight upturn is also being felt again with regard to the building material machinery business: Projects which had been put on hold are slowly being put forward again and demands increase. The big challenge facing the industry, however, is that new projects within the engineering business do not necessarily result in work immediately.
Dr. Kemmann stressed that growth rates similar to the ones the industry saw between 2003 and 2008 are not to be expected for the time being. This was due to four reasons:
› The growth during the boom phase was higher than the real demand
› The forecasts for the European construction industry are on the low. Sustainable growth is not expected before 2011
› Worldwide there are still high stocks of “young“ second-hand machinery available and the fleets of machinery currently in use are still relatively new
› Financial support by banks, however urgently required, is still rather difficult to achieve
In 2010 the course has to be set for the time after the crisis. The long-term forecasts for the construction sector, building material industry, mining and construction machinery industry worldwide are positive. According to Dr. Kemmann, this is due above all to the rapidly growing markets in Asia and also other regions, in particular Brazil.
India – Partner country of bauma 2010
India was able to get out of the economic crisis very quickly and with hardly any damage. The Indian construction and mining industries expect growth rates of 11% and 12% respectively, per year on average until 2015. Thus both sectors are above the expected GDP growth rate. Within the next three years, the demand for machinery and equipment will increase by 20%.
India will be the recurrent theme of this year‘s bauma. The German Engineering Federation (VDMA) and Messe München GmbH personally invited more than 100 executives and representatives of important Indian construction and mining companies to come to Munich. 4 000 Indian specialist visitors are expected to attend the fair. The aim is to promote dialogue between users and providers of technical solutions and to build business relationships, said Dr. Kemmann. At the bauma forum, VDMA is offering additional “country spotlights“ on Russia, Asia and Latin America from the second to the fourth exhibition day.