French construction equipment market worst in decades

The French construction equipment market has fallen by almost 25% in 2015, according to the latest report by CISMA (the French association of manufacturers of construction equipment and material handling technology).

The French association reported that the construction industry as a whole has been one of the only industries to see a decline, and that the materials sector has seen its worse level for “decades”.

The public works sector has seen its worst decline in 30 years, falling 8%, while road construction was down 10%.

It said that all the “materials families” have been affected, including compact equipment, heavy earthmoving equipment, mobile cranes, tower cranes, and concrete materials. The fall is said to have been driven by lower rental investment.

The forecast for 2016 looks slightly more favourable, but will still represent a challenge as major companies will aim for stabilisation in the first half of the year, before hoping to see a small improvement in the second half of the year.

However, producers of aggregates and ready-mixed concrete will not see any immediate recovery. Their materials purchases will certainly further reduce next year, according to CISMA. Their only positive point for the first time since 2009 is that excavators are planning to increase their investments by 1%.

Purchases will be primarily oriented towards shovels or rollers, although other materials are also listed. Similarly, rental companies will be more active in terms of equipment purchases next year than they have been this year, with a forecast rate of investment increased by nearly 1.5%.

CISMA said that while 2016 won’t be the year of recovery, it will certainly show signs of brief improvement, with staff being more stable and some finding prospects of promotion.