Retail sales of
construction and earthmoving equipment in the UK market grew by 2% in 2018,
after experiencing a fall in the last quarter of the year.
Prior to the 8%
reduction in sales in Q4 (compared with Q4 2017), the trend over the previous
two years had been to show steady, but slowing growth on a quarterly basis. T
After showing modest
growth last year, retail sales in the UK market reached nearly 31,000 units,
according to the construction equipment statistics exchange.
Amongst the most
popular machine types, crawler excavators (over 10 tonnes) showed the strongest
growth, at over 16% ahead of 2017 levels. This pushed mini/midi excavators
(under 10 tonnes) in to second place at 4% growth year-on-year.
The equipment type
showing the weakest performance in 2018 was sales of telehandlers to the
construction industry (only). After weak sales in the second half of the year,
total sales in 2018 were 10% below 2017 levels.
Construction output
in the UK in 2018 showed only 0.7% growth, according to the latest
figures from the Office for National Statistics (ONS). This was the lowest
level of year-on-year growth for the construction industry for five years.
Against this background, 2% growth in sales of construction equipment can be
considered as a positive performance for the year, with sustained demand from
the rental sector a key factor.
In contrast with
domestic sales, UK exports of construction and earthmoving equipment showed
very strong growth in 2018, according to official customs data from HMRC. This
shows that exports reached £3,473 million, an increase of 19% on 2017 levels.
This reflects strong demand in many of the major overseas markets, and is
significant for UK equipment manufacturers, as exports of equipment are
estimated to account for over 60% of UK machine production.
Imports of equipment
also increased in 2018 to £1,633 million, which was 11% higher than 2017, and
is consistent with domestic demand for equipment remaining strong. As a result
of the above, the overall trade surplus for construction equipment showed a 28%
increase in 2018, reaching £1,839 million.
