CECE Report of Activities

REPORT

OF ACTIVITIES

OUR SECTOR IN FIGURES

CONSTRUCTION EQUIPMENT SECTOR IN EUROPE

40 BN €

1 200

300 000

REVENUES

COMPANIES

OVERALL EMPLOYMENT

26 BN €

20%

SHARE OF GLOBAL PRODUCTION

EXPORT

MOST COMPANIES ARE SMES 22%

<10 MN €

39%

10-50 MN €

11%

50-100 MN €

16%

100 MN € - 1 BN €

11%

>1 BN € Source : McKinsey 2016

SINCE JANUARY 1ST, 2018, Enrico Prandini is the new President of CECE. As previous First Vice President he succeeded Bernd Holz. The CECE presidency is a rotating post held for two consecutive years by each of the associations representing their member nations. Enrico Prandini is Managing Director of Komatsu Italia Manufacturing, one of the Komatsuâ&#x20AC;&#x2122;s Global Officers and Vice President of the Italian Construction Equipment Association UNACEA.

BUILDING CUSTOMER LOYALTY THROUGH A COMMON VISION I want to push ahead with the longterm strategy of my predecessors.

One of my main goals for the presidency will be to build customer loyalty through a common vision. It is one of the key success-factors for the industry to be competitive and future-proof. Technological change, skills shortage and challenges rising from digital construction need to be tackled also together along the value chain. In the coming years CECE wants to create more dialogue opportunities with representatives of the construction value chain.

Bernd Holz passes the CECE Presidency to Enrico Prandini

This is especially important in view of the forthcoming European elections in spring 2019 and the nomination of the new European Commission.

We should seize the opportunity to gain more attention and impact.

I will also continue to have an eye on the European Digital Single Market.

We will keep on promoting the idea of fair competition and free trade for all market players in Europe.

What we must avoid is non-needed complexity in laws and regulations.

I believe that CECE should also focus on the way to further foster visibility and political recognition for the construction equipment sector.

Enrico Prandini CECE President

OUR MEMBERS AEB AGORIA ANMOPYC CEA CISMA FFTI FMIB FMMI IMDER SVSS SACE UNACEA VDMA

CECE MISSION CECE is the recognized organisation representing and promoting the European construction equipment sector and related industries towards the European Institutions and other organisations worldwide.

CECE coordinates the views of its members with the aim of achieving a fair and competitive regulatory environment via harmonized standards and other relevant policy means.

CECE monitors upcoming European legislation, forms the industry position and actively communicates the views and interests of the sector to the European legislators. CECE is the established source of factual and technical information on the European construction equipment sector and its overall contribution to society.

CECE INVOLVEMENT IN EU POLICIES DG CONNECT

DG EMPLOYMENT

DG ENVIRONMENT

Air quality

X

Circular economy

X

Construction • data policy • digital construction

DG GROWTH X X

X X

Engine emissions

X

Global trade

X

Industrial policy Operators safety

X X

Single market • machinery directive • road circulation Skills

DG TRADE

X X X X

X

OUR TEAM RICCARDO VIAGGI Secretary General

BELÃ&#x2030;N BRAVO

ROMA GUZIAK

Technical Policy Manager

Communications Manager

SEBASTIAN POPP

ANJA SCHNIEDER

Secretary Statistical Commission

Press Officer

STEPHAN BELAEN

Technical Policy Manager

CHARLOTTE OTTEN

Events and Exhibitions Officer

#DIGITALCONSTRUCTION

#CO2

Construction equipment manufacturers invest and innovate continuously to deliver equipment with highest productivity and lowest environmental impact. Efficiency, safety and precision are key. This innovation is even stronger within the digital evolution going on in the construction sector.

Boosting an impressive track record in achieving energy efficiency gains in the past 50 years, the construction machinery industry continues to be committed to reducing GHG emissions, in particular CO 2, further in the coming years. The CECECEMA joint High-Level Group on CO 2 continues to explore the CO 2 reduction potential for the field of construction and agricultural machinery applications.

The Group stresses the importance of moving from a purely machine-specific approach to a more holistic one. It is not only the optimization of all elements related to the machine itself (engine, transmission, hydraulics, tires, etc.) that contributes to decrease emissions but the process and operation efficiency, together with the sustainable use of alternative energy sources should also be part of the holistic evaluation concept. How digitalisation may contribute to machinery - and process - optimisation is one of the key questions that the Group is facing.

CECEâ&#x20AC;&#x2122;s member companies are embracing and leading digitalisation, with smart machines creating connected jobsites.

Through the leading role of CECE HighLevel Technical Policy Advisory Group, CECE has undertaken a structured approach to digitalisation. The European construction equipment industry is confidently looking towards the future and ready to embrace the transition into the digital era, with a stronger-thanever focus on technology leadership and customer needs.

OUR TECHNICAL WORK

HIGHLIGHT IN 2017:

TECHNICAL COMMISSION

Chair: Stefan Nilsson, Volvo CE Secretary: Stephan Belaen, CECE Number of experts: 122 The world of technical regulation is managed by the CECE Technical Commission. The Commission brings together a wide variety of technical experts from national associations and companies. They review the work of CECE Project Teams.

Guiding and steering the CECE technical work regarding engine emissions, the revision of the outdoor noise directive, the lifting of the warning against visibility, the study on the harmonization of road circulation requirements, the study on the review of the machinery directive and the follow-up on Reach, RoHS and Resource efficiency, the so called 3R.

PRIORITY FOR 2018:

Overseeing the proper execution of the work commenced in 2018, push the road circulation file toward a regulation and monitor new developments, e.g. radio equipment, e-privacy, digitisation, robotisation, artificial intelligence and cybersecurity.

QUOTE FROM THE CHAIR:

â&#x20AC;&#x153;The technical experts of the Technical Commission play a very important role in steering the different Project Teams and monitoring issues that are on the radar.â&#x20AC;?

HIGHLIGHT IN 2017:

In 2017 the Project Team focused in the support to members on a better understanding of the new emissions Regulation (EU) 2016/1628 and the follow-up of the implementing and delegated acts of the Regulation. CECE, together with other sister associations published a FAQ document on stage V focused on manufacturers main questions on the topic. Low emissions zones and the requirements for construction machinery were also on the radar of the group. CECE experts defined a position paper to promote the use of Stage V where emissions control zones are being implemented to address local air quality issues.

PT ENGINE EMISSIONS

Chair: Jason Ong, Komatsu Secretary: Belén Bravo, CECE Number of experts: 35

PRIORITY FOR 2018:

Market surveillance and emissions are key topic that the group will tackle during 2018. It is important to secure the conformity of machines in terms of emissions, and continue helping on the better understanding of stage V requirements.

QUOTE FROM THE CHAIR:

“As Stage V approaches we must take the opportunity to promote Europe’s position of having the most exacting levels of emission regulation worldwide for our sector, whilst continuing to engage with a broad range of topics that may impact our members.“

The main areas of focus for the CECE Technical Managers are environment, safety, industry and market.

European construction equipment manufacturers contribute to the society by making significant efforts to lower the emissions of nitrogen oxides, hydrocarbons and other environmentally harmful particulates. Emissions of pollutants from new construction equipment are now lower than ever.

CECE Project Team Engine Emissions identifies main concerns regarding the obligation of the EU regulation on requirements relating to gaseous and particulate pollutant emission limits and typeapproval for internal combustion engines for nonroad mobile machinery.

HIGHLIGHT IN 2017:

The group focused on all topics related to Resources efficiency, RoHS and REACH (3R) that could have an impact on the construction equipment sector. The group is a forum of discussion to follow-up current and new legislation and also to provide input to the EU regulatory bodies ensuring that our sector constrains are properly considered.

PT 3R

Chair: Darius Sossdorf, VDMA Secretary: Belén Bravo, CECE Number of experts: 30 Restriction on use of substances in the construction machinery sector, constraints in view of machinery design, production and sales, availability of raw materials are topics that are covered by the CECE Project Team 3R: Reach, RoHS and resource efficiency. CECE follows the package on circular economy and related legislation, like the waste directive, Ecodesign directive and WEEE directive.

PRIORITY FOR 2018:

CECE explored the impact of the REACH article 33 obligations for construction machinery products and ‘article is an article’ impact evaluation. Checked the amended scope in RoHS2 and followed the circular economy package.

QUOTE FROM THE CHAIR:

“Manufacturers are still confronted with the obligation to be in line with technical and environmental legislations. In this context, our CECE Project Team 3R is in permanent discussion about all relevant aspects which could impact our members.

This permanent work is an absolute must.”

HIGHLIGHT IN 2017:

To give industry guidance on what approach to apply during the period where there is no presumption of conformity of EN 474-1 related to visibility aspects and to work actively in the Commissionâ&#x20AC;&#x2122;s working group dealing with this issue. The PT also follows closely the ongoing activities on visibility standardization in ISO 5006 and the activities of the ADCO Machinery Working Group on earthmoving equipment.

PT VISIBILITY

Chair: tbd Secretary: Stephan Belaen, CECE Number of experts: 26

PRIORITY FOR 2018:

Working closely with the European Commission and the member states so that they are aware that the existing project on ISO 5006, combined with CEN action to update EN 474-1, has successfully addressed the 5 ADCO recommendations and ADCO concerns raised later related to residual risks and by this the warning in the Official Journal of the EU should be withdrawn.

To enable the free circulation of construction equipment within the internal EU market, the relevant technical requirements on safety minimising the risk of accidents caused by the use of machinery (e.g. the operators field of view in a machine) have been harmonised through the Machinery Directive.

New technologies and recent developments are reflected in the supporting harmonised safety standards. CECE Project Team Visibility focuses on the topic of operatorsâ&#x20AC;&#x2122; field of view.

HIGHLIGHT IN 2017:

CECE’s vision towards the European Commission that the machinery directive should not be reopened but only be upgraded by the “New Legal Framework” legislation. The PT is also working on the formal objections of the Commission Machinery Working Group.

PRIORITY FOR 2018: PT MACHINERY

Chair: Jason Ong, Komatsu Secretary: Stephan Belaen, CECE Number of experts: 27 Within the CECE Project Team Machinery, the experts have the task of evaluating the machinery directive and its performance, and to identify areas for improvement.

Continue to work on the CECE related issues of the Machinery Working Group. Concentrate on specific aspects related to digitalisation, robots and artificial intelligence. Work on the relation between the Machinery directive and the Radio Equipment Directive. CECE position on the report of the Commission related to the review of the Machinery Directive.

QUOTE FROM THE CHAIR:

“The Machinery Directive has proved to be no barrier to innovation, this can clearly be seen from the technological advancements that digitalisation has already brought to our industry, it is the role of the PT to ensure this message is understood by the legislators”.

HIGHLIGHT IN 2017:

Work out a draft position paper on a study conducted from the European Commission in view of a potential revision of the outdoor noise directive. A CECE position is being worked out for the following equipment that are affected in the report: compaction machines, concrete or mortar mixers, conveying and spraying machines for concrete and mortar, dozers, drill rigs, hydraulic hammers, hydraulic power packs, steel tracked loaders, piling equipment, road milling machines, truck mixers and mobile sieve installations & Mobile waste breakers.

Contribution to the Commission’s Inception Impact Assessment and public consultation.

PRIORITY FOR 2018:

Finalise the position paper and work with the European Commission in ensuring that legislative requirements are technically and economically viable.

QUOTE FROM THE CHAIR:

“It is absolutely important to follow closely the developments of this topic and to pay attention that no unnecessary and immoderate burdens come up by lower limit values.”

PT NOISE

Chair: Darius Sossdorf, VDMA Secretary: Stephan Belaen, CECE Number of experts: 62 The construction equipment industry is delivering products that are ergonomic, easier and less noisy to operate. To obtain a high level of protection, the level of noise emitted in the environment by equipment for use outdoors has been reduced to protect the health and well-being of citizens. The experts within the CECE Project Team Noise are contributing to the classification of the new noise limits for certain categories and possible new test methods.

HIGHLIGHT IN 2017:

PT ROAD CIRCULATION

Chair: Jens Wagner, Mecalac Secretary: Stephan Belaen, CECE Number of experts: 36 The task of harmonizing EU safety requirements for circulation of mobile machinery on public roads is the scope of the CECE Project Team Road Circulation. Harmonisation of requirements for the road circulation of mobile machinery in the EU will remove several layers of costs for industry and other stakeholders and therefore increase the competitiveness of the industry in the EU. In addition, it also increases the well-functioning of the Single Market and lowers the risk of road accidents in areas of lower standard requirements.

Working out the CECE preferred legal solution for the harmonized governing of the use of mobile machines travelling on public roads in the EU and the related technical requirements. These technical requirements are being worked out in the so called ‘Industrial Task Force’ where 5 mobile machinery associations are involved. Contribution to a first workshop held by the European Commission on this subject.

PRIORITY FOR 2018:

To continue to cooperate with the European Commission and member states to develop a regulation and provide a draft to the Commission of the detailed technical requirements worked out within the Industrial Task Force. Contribute to the second stakeholders workshop of the European Commission.

QUOTE FROM THE CHAIR:

“Companies cannot fully exploit the potential of the Internal Market without harmonized rules in place.

It’s high time for the EU to fill that gap.”

HIGHLIGHT IN 2017:

The group, which is a discussion forum to follow current and new legislation, started its activities in 2017. It focuses on topics related to data and the Digital Single Market that could have an impact on the construction equipment sector. It also aims to provide input to the EU regulatory bodies, ensuring that the needs and requirements of our sector are properly considered.

The General Data Protection Regulation and the proposal of the E-Privacy were the main topics covered in 2017.

PRIORITY FOR 2018:

2018 will be a busy year for PT European Data Policy considering the amount of proposals on data regulation from the European Commission. The scope of the E- Privacy proposal continues to be a major concern for our sector. The group will also have to examine the cybersecurity package and the free flow of non-personal data proposal.

QUOTE FROM THE CHAIR:

“It is essential for manufacturers that the Digital Single Market comes with a clear legal framework. The freedom of contract should not be undermined as flexibility will be key for the development of digitisation for construction machinery.”

PT EUROPEAN DATA POLICY

Chair: Charlotte Le Bozec, Caterpillar Secretary: Belén Bravo, CECE Number of experts: 30 The EU Digital Single Market strategy is driving legal initiatives that will have a broad impact on the construction machinery sector, from the protection of personal data to the data generated by machines. This includes questions as ownership of the data, transfer, portability, liability, data security. Identifying the main concerns regarding the obligations of the new regulation lies in the hands of the expert of the CECE Project Team European Data Policy.

OUR PRODUCT GROUPS The CECE work is organized as well by different products. The work of CECE Product Groups focuses on improving the quality and timing of the products, enabling easy communications amongst mixed fleets and advancing machine’s productivity. Different types of equipment require different approach.

HIGHLIGHT IN 2017:

Starting of a work intended to define a common protocol for machine-to-machine jobsite communication and follow-up the various machine regulations.

PRIORITY FOR 2018:

Finalizing the definition of this common protocol.

QUOTE FROM THE CHAIR: PG ROAD EQUIPMENT

Chair: Anton Demarmels, Ammann Group Secretary: Richard Cleveland, CISMA Number of experts: 12

“Our discussions are driven by the spirit to find common solutions to regulatory requirements and to the challenges of the digital era with minimal boundaries for future product developments and market offerings.”

HIGHLIGHT IN 2017:

Economics and statistics.

PRIORITY FOR 2018:

Economics-improving quality and timing, activating new product line statistics.

QUOTE FROM THE CHAIR:

“Tower crane sales in Europe were up in 2017 by over one third compared to 2016. It looks like the strong growth in the building construction sector in Europe as well as rental fleets replacement cycle are having a positive effect on current sales of tower cranes.

Without external shocks the growth could continue also in 2018.”

PG TOWER CRANES

Chair: Marco Gentilini, Terex Secretary: Luca Nutarelli, UNACEA Number of experts: 7

HIGHLIGHT IN 2017:

Economics and statistics.

PRIORITY FOR 2018:

Increasing the concrete equipment product lines covered by CECE statistics and the number of reporters.

QUOTE FROM THE CHAIR:

“After the 21% growth in 2016, concrete equipment sales in Europe experienced in 2017 a further 2 digit expansion. According to the industry sentiment the business may remain positive in the near future.”

PG CONCRETE EQUIPMENT

Chair: Frank Siefert, Liebherr Secretary: Luca Nutarelli, UNACEA Number of experts: 90

HIGHLIGHT IN 2017:

Establishment of a worldwide statistical exchange on excavator-mounted plate compactors, new hydraulic breakers statistics using working tool diameter.

PRIORITY FOR 2018:

Expand the statistics coverage further and move on an initiative to highlight the advantages of specialized hydraulic attachments in “deconstruction” rather than conventional demolition.

QUOTE FROM THE CHAIR: PG HYDRAULIC ATTACHMENT TOOLS Chair: Torsten Ahr, Epiroc Secretary: Sebastian Popp, VDMA/CECE Number of experts: 50

“It is encouraging to see that we still manage to get new manufacturers interested in the work of our group. With the creation of plate compactors statistics, we expanded our coverage beyond the demolition sector which is an important step for us.”

CECE STATISTICS & ECONOMIC AFFAIRS CECE collects and provides an up-to-date market data for many types of construction equipment, and provides a leading indicator for the development of European construction equipment markets.

The information is coveted by the participating companies and considered a well-developed source of business intelligence.

CECE runs both European and international sales statistics and is one of the partners of the Intercontinental Statistics Committee which provides worldwide statistics. CECE statistics coverage extends to earthmoving equipment, road equipment, tower cranes, concrete equipment and hydraulic attachments.

The CECE Statistical Commission, with representatives from manufacturers and national associations, oversees the proper functioning of the statistical exchange, and manages the constant process of enlargement and improvement.

Manufacturers are invited to take part in the statistical exchanges by reporting their sales by country, on a monthly or quarterly (depending on the exchange programme) basis.

Any statistics results are confidential to the participants and cannot be shared beyond the reporters.

Since 2008 CECE runs a monthly business trend enquiry, the CECE Business Barometer. The objective is to provide members with a regular business trend indicator of the European construction equipment industry.

The CECE Business Climate Index summarizes the survey answers on the evaluation of the current business situation and the expectations for the next 6 months regarding sales, and is published on the CECE website on quarterly basis.

Want to know more, contact us via info@cece.eu

The companies taking part in the Barometer receive a report about the economic situation in Europe each month.

CECE BUSINESS CLIMATE INDEXâ&#x20AC;&#x2122;

source: CECE Business Barometer, May 2018

HIGHLIGHT IN 2017:

Quality of statistics data – the top priority given for the year – further improved, as more manufacturers turned towards reporting of end-user retail sales.

PRIORITY FOR 2018:

Together with our international partners AEM, CEMA, and KOCEMA, we will work on various relevant initiatives: a new classification of wheel loaders as a reaction to evolution of machines, a clean statistics coverage of compact wheel loaders and telehandlers, and important adjustments for the compaction equipment programmes, to name only a few.

QUOTE FROM THE CHAIR:

“Thirteen new companies will start participating in international statistics programmes in 2017 or start reporting new products. That is the highest number we have ever seen, and a clear proof that our statistical work is going into the right direction.”

CECE STATISTICAL COMMISSION

Chair: Nicolas Clerc, Caterpillar Secretary: Sebastian Popp, VDMA/CECE Number of experts: 31 Our Business Barometer dedicated to CECE business leaders is reserved for respondents only. Contact us to take part in this survey at info@cece.eu.

M A R K ET S

AND FUTURE OF EUROPE DISCUSSED AT THE CECE SUMMIT

system in all Member States.

Speaking at the Dinner Debate, Acting Head of Unit Birgit WEIDEL (DG GROW) confirmed the European Commission’s willingness to develop such necessary legal framework, aimed at supporting the harmonisation of homologation procedures across the EU.

CECE DISCUSSES SINGLE MARKET AND DIGITALISATION WITH MEPs AT BRUSSELS DINNER DEBATE On Wednesday 11 th October 2017, the CECE Summit was kicked-off by a Dinner Debate in the European Parliament. The debate was chaired by MEP Jo LEINEN (Germany – S&D), hosted

by CECE & CEMA, with the support of the European Forum for Manufacturing. The following MEPs took the floor to share their views with the audience: Anthea McIntyre MEP (ECR, UK), Jan HUITEMA MEP (ALDE, Netherlands), Deidre CLUNE MEP (EPP, Ireland), Nicola CAPUTO MEP (S&D, Italy) and Paul RÜBIG (EPP, Austria).

With the title “Agricultural & Construction Machinery in the Single Market; Today & Tomorrow”, the aim of the Dinner Debate was for industry and decision-makers to open-

ly discuss needs, challenges and the way forward to secure and improve EU’s industrial competitiveness.

The first topic of debate was the upcoming European legal initiative to harmonise the requirements for road circulation of mobile machinery that travel on public roads. As clearly expressed by CECE’s Enrico Prandini (UNACEA – Komatsu), manufacturers are faced with a wide variety of national laws and requirements, creating substantial financial and administrative burden to prove that their machines can travel on public roads.

Industry and MEPs were unanimous in calling for one single approval

The second topic of the Dinner Debate was the digitalisation trends in the machinery sector.

After a motivating keynote speech by Margus Magi from the Estonian Presidency, two CECE representatives – President Bernd Holz (SVSS – Ammann) and Wolfgang Burget (CISMA – Liebherr) – provided elements of answer to the debated question: “EU Policies for the Industrial reality of tomorrow: How to realise the full potential of the Digital Single Market”. Mr Burget provided a technical input on why digitalisation must be driven by industry in full coordination within the value chain and provided an interesting teaser to the Technical Forum presentation of the following Summit day.

Upon conclusion and referring to the current Parliament discussions on the E-Privacy regulation, CECE President Holz alerted MEPs about the negative impact that a burdensome and inadequate legal framework could have on data-collection and Machine-To-Machine communication on jobsites.

REFLECTING ON UNCERTAINTY TO RESHAPE THE FUTURE OF CONSTRUCTION EQUIPMENT SECTOR In the first part of the session, impulse presentations were delivered by guest speakers Vladimiro Giacchè, President of Centro Europa Ricerche in Italy, and Professor Stefan Collignon, highlevel academic of political economy at Sant’Anna in Pisa. Both addressed the audience with critical reflections and provocative statements on the impact of political and economic uncertainties on the current and future state of the industry and European economies at large.

The debate was accompanied by the projection of some extracts from the recently released film “PIIGS”, a documentary by filmmakers Adriano Cutraro, Federico Greco and Mirko Melchiorre, investigating the most controversial aspects of the economic crisis in Europe.

After an introductory speech

by CECE Secretary General, the Summit’s Economic Forum took place during the morning of Wednesday 12 th October in Brussels. With the help of moderator Sandy Guthrie – Editor of Construction Europe, over 60 participants attended a lively panel debate around the question “Globalisation reversed? Construction equipment sector prospects in days of political uncertainty, rising populism, and declining confidence in free trade”.

After that, three high-level representatives of the construction equipment industry joined the panel to discuss about the added-value, the shortcomings and the perspectives surrounding the European Union, the Single Market and the Euro area. CECE’s Enrico Prandini from KOMATSU, the Executive VicePresident of Group Mecalac, Alexandre Marchetta and the Global Director of Industrial Strategy at Volvo, Niklas Reinedahl, all agreed that the added-value of the EU remains unquestionable, thanks to its potential to address the current uncertainties originating from political tensions.

The second part of the Economic Forum was exclusively dedicated to market potential and prospects, with presentations by two external speakers. Taco van Hoek, Director at EIB (Euroconstruct), gave participants an insightful presentation on the overall performances and perspectives for the building construction & civil engineering sectors. After him, Chris Sleight, Senior Consultant at Off-Highway Research, provided some figures on equipment markets and shared information on market potentials in the current uncertain political conditions, which sometimes hinder investment capabilities.

Visit our YouTube channel to see highlights and interviews from the CECE Summit 2017!

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A relaunched monthly newsletter is our regular update on topics and challenges related to the EU legislation and activities of CECE in general.

It includes three regular sections on EU News, CECE News and Exhibition Partner News.

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AN NUAL ECO NO

MI C

REPORT ction European constru s equipment perform text well in a global con Dear reader,

No.4

CECE ANNUAL ECONOMIC REPORT

M A R C H 2018

ary

Executive Summ CONSTRU CTION

INDUSTRY

continconstruction sector showed Output in the European and for the first time, countries, it ued to grow in 2017, countries. In some a decade increases in all level in more than reached its highest of activity still others, the level in 2017, while in ly lower than before the ecoremains substantial crisis. The strongest driver of nomic and financial in 2017 was the sector n growth in the constructio housebuilding market.

CONSTRUCTION EQUIPM ENT SECTOR IN EUROPE

CECE publishes its Annual Economic Report in the spring of each year, providing an in-depth look at the state of the European construction equipment sector. The CECE Annual Economic Report is publicly available at www.cece.eu to help promote the knowledge and understanding of the sector amongst a wider audience.

INDUSTRY

MINING financial thousands of employprices and better manufactured by CECE Annual ery, Improving commodity mining companies point 40 BN € maintained by thousands global elcome to the new ees and used and offices, 300 000 equipment. REVENUES results amongst 1 200 the third edibuild the houses, demand for mining Economic Report, of others, helps to OVERALL towards improving railways, roads, bridges, COMPANIES tion in the new format. schools, factories, that connect people, EMPLOYMENT the tunnels and canals across an overview of and serve citizens The report contains in- boost economies EQUIPM ENT MARKET situation in Europe, the world. and economic growth Europe macro first quarter (+21%), n equipment inn and mining indusAfter a very strong second quarter (+4%), before sights on the constructio the construction The European constructio 5% of total EU ). about on down in the respectively slowed focusses represents 23%, then apand and dustry for tries, Q4 (17% look taking off in Q3 and g output and accounts for an in–depth with the levels sales are on par equipment industry . For engineeriny 20% of worldwide production is still 20% Current levels of rsector is performing proximatel 2008, but the industry at how the CECE inequipment. Manufactu seen in 2006 and of construction report this year also peak. medium-sized 20% the first time, the below the 2007 CECE ers are principally small and 26 BN € from the national also large EuroSHARE OF GLOBAL cludes information light companies, but there are EXPORT TIVES companies with s, shedding more PRODUCTION REGIONA L PERSPEC and multinational member association nts in the European pean in Europe.

European conon regional developme production sites of growth for the stable sector. denominators 2017 was a year markets. 2018 expects or big, the common construction equipment struction equipment Report is pub- Small capacity to innovate, the high level s.

Economic investment Annual the The CECE to help are markets and further and the large comat www.cece.eu of product diversity lically available ring supply chain. and understanding S plexity in the manufactu Europe’s promote the knowledgea wider audience.

K of OUTLOO key example The sector is a of the sector amongst in other words, and Western Europe n equipment in- engineering leadership and, of g the markets in Northern levels Major high constructin in The European constructio g historically part of the European a fundamental asset that are experiencinsee further growth in the near economy that dustry is an important plays a significant is to and competitive and should again sales, are unlikely engineering sector, the European Union sustainable be fit for the future. and Eastern Europe of growth.

Europe needs to future. Southern group of role in the economy contribute to overall 22% . The sector offers 39% produced by a small be the regions that in the European market is a 11% and its direct neighbours used in construc- This report is CECE member associations increase fifth 10% the to tools” the 5% mark A it all kinds of “work instru- people from for 2018. This would construction in Brussels. We hope industries, and is realistic forecast the nt and the secretariat valuable new insights tion and related of expansion for the final year economic developme consecutive year provides you with and may also be mental in boosting reading. Comments nt. It includes mamachinery industry, to , and wish you pleasant in the cycle in 2019. and societal improveme and can be directed making equipment before a downturn always welcome chines such as road concrete equip- are <10 MN € 10-50 MN € info@cece.eu. earthmoving machines, 50-100 MN € cranes.

The CECE team ment and tower and innovative machinThe sector’s durable 1 REPORT 16% 11% CECE ANNUAL ECONOMIC

W

MOST COMPANIES ARE SME

CECE REPORT OF ACTIVITIES

March 2018

100 MN € - 1 BN €

>1 BN €

Source : McKinsey 2016

16

CECE ANNUAL ECONOMIC REPORT

March 2018

CECE publishes its Report of Activities on an annual basis. In this report we present who we are and we showcase our main activities. This report is publicly available at www.cece.eu.

OUR RESULTS OVER THE PAST YEAR }} S ocial media exposure increased by 1200% } } N ews coverage increased by } } T weet impressions grew by

12%

70%

}} T he number of our followers on Twitter increased by 32% }} F ollowers on LinkedIn increased by 25% } } L inkedIn impressions grew by

42%

CECE ENGAGES IN IMPORTANT STAKEHOLDERS’ PROJECTS WORKERS SAFETY PROJECT

In 2016 CECE joined the EU-funded project ‘Working Safer with Construction Machines – a MultiStakeholder Approach’, promoting a better dialogue in the construction industry with regard to workermachine safety on construction sites.

The project was carried out within five workshops focused on: access to the machines and other person related aspects of ergonomics, operator’s visibility, quick couplers, safety on construction sites when using earth-moving machinery, training of operators and other workers and safety in general. The key results collaborated by a group of experts representing manufacturers, users, workers and employers. Four fact sheets on Standardisation, Ergonomics, Collision Avoidance and Worksite Organisation/Training were elaborated. The factsheets give direct instructions to practitioners from both sides, the user in the construction sector and the designer in the manufacturing companies.

This initial collaboration effort gave way to signing a Memorandum of Understanding between FIEC, EFBWW and CECE, in order to structure the cooperation framework and explore future possibilities.

PACT4YOUTH – ATTRACTING YOUTH TO CONSTRUCTION TRADES

At the end of 2017 ‘Pact4Youth’ was successfully concluded by a high-level stakeholder conference within the European Skills Week.

Established as a Brussels-based coalition of multinationals and business associations lead by CSR Europe, Pact4Youth featured the direct participation of CECE, as a sign of the construction equipment sector’s commitment to attracting young talent. CECE has been represented by Henri Marchetta (CISMA - Mecalac) throughout the project, which was run under the patronage of the European Commission and Parliament. The initiative was successful in creating quality partnerships between business and education, notably in the form of apprenticeships and reducing the skills gap, as well as contributing to effective EU and national policy making in this field.

In this framework CECE also hosted a high-level discussion in the European Parliament on 22 nd November 2017 at the invitation of MEP Brando Benifei. The event featured speakers from the European Commission, the contractors’ community, SMEs and the STEM sector, represented by Susan Scurlock of PrimaryEngineer.

EUROPEAN INDUSTRIAL POLICY STRATEGY

CECE supports a renewed European Industrial Policy Strategy, having in mind that Europe is the cradle of the manufacturing industries and has been at the forefront of industrial revolutions and technological innovations. Industries need to invest to create more jobs by upskilling the workforce to guarantee Europe’s growth and competitiveness on a global scale. Stimulating investment in new technologies, improving the business environment and easing access to markets are the objectives of the European Industrial Strategy. CECE has been cooperating with other industry representatives in order to contribute to the finetuning and concrete implementation of this ambitious strategy.

To advocate such a change, CECE President and Secretary General met bilaterally with Commission Vicepresident Mr. Katainen in July 2017.

INTERNATIONAL COOPERATION WITH ASSOCIATIONS ON ALL CONTINENTS CECE holds regular dialogue with the major construction equipment associations in other parts of the world, in particular those in the USA, China, Japan, South-Korea and India, in order to keep abreast of relevant developments in the respective regions and to share expertise and knowledge. Once a year, the secretary generals meet in the framework of the International Associations Committee (IAC), usually during one of the international trade fairs.

The IAC receives input from the JTLM, the Joint Technical Liaising Committee, and the ISC, the International Statistics Committee.

CONSTRUCTION EQUIPMENT ASSOCIATIONS AROUND THE WORLD N orth-America, AEM Association of equipment manufacturers J apan, CEMA Japan construction equipment manufacturers association K orea , KOCEMA Korea contruction equipment manufacturers association I ndia , ICEMA Indian contruction equipment manufacturers association razil , SOBRATEMA B Brazilian association for contruction and mining technology hina , CCMA C China construction machinery association

CECE INTERNATIONAL EXHIBITION PARTNERSHIP PROGRAMME CECE gives coveted patronage to a limited number of world-leading sector exhibitions. With this role, CECE contributes to achieving successful trade fairs and promotes business and valuable networks that are created around these occasions. According to the programme, CECE Exhibition Partners can obtain Bronze, Silver and Gold Partner packages, thus profiting from a number of commercially attractive services, useful promotion activities and CECE market intelligence resources.

2018

CECE has Gold Partnership agreements with Messe München – organisers of bauma, which is taking place every three years – next edition is in 2019. This agreement also covers exhibitions bauma CTT RUSSIA and bauma CHINA.

The Bronze partnership agreement with VeronaFiere covers the Italian exhibition Samoter. Sobratema, the Brasilian construction equipment trade association and organiser of the Latin American exhibition M&T Expo part of bauma NETWORK also has a Bronze-level partnership agreement, renewing its long-standing cooperation with CECE.

13-16

bauma CONEXPO AFRICA

South Africa

Exhibition Partner

23-28

Intermat

France

Gold Partner

05-08

bauma CTT RUSSIA

Moscow

Exhibition Partner

05-08

M&T Expo part of bauma NETWORK

Brazil

Bronze Partner

27-30

bauma CHINA

Shanghai

Exhibition Partner

27-30

bauma CONEXPO INDIA

India

Exhibition Partner

08-14

bauma

Germany

Gold Partner

MARCH APRIL

J U N I J U N I N O V D E C

2019

AEM, organizer of CONEXPO-CON/AGG is a Gold Partner as well. Through the partnership agreement with Messe München and AEM, CECE is also partnering with bauma CONEXPO INDIA and bauma CONEXPO AFRICA. Finally, CECE has a Gold partnership with Intermat, with the last exhibition taking place in April 2018.

A P R

Published in July 2018

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