The global construction equipment industry is enjoying a peak growing to a retail value of US$110 billion last year, according to data from Off-Highway Research. This equated to 1.1million units in 2018. The industry has seen two years of strong growth, and whilst there is forecast to be a moderate decline in 2019, sales look to remain strong over the next few years.
North America saw a growth of 13% resulting in 195,500 units sold. Western Europe also had a successful year with sales reaching their highest in a decade at 177,694 units. Sales in the UK and Germany were particularly strong. Political changes from Brexit could potentially impact the construction equipment industry in the UK this year due to machinery being both imported and exported from the EU.
The U.S. growth has been mirrored in the construction industry, with construction employment increasing by 338,000 jobs over the past year, according to data from the Associated General Contractors of America. Associated Builders and Contractors Inc predicts the construction sector will continue to remain strong this year, with low unemployment creating an estimated shortage of 500,000 positions. The UK construction industry is also due to remain strong. According to the Construction Products Association it is expected to grow by 0.3% in 2019. Previously this was forecast at 2.3% but has been downgraded due to Brexit uncertainty as investors wait to see the outcome of the political process.
Companies that will benefit most from the peak in the construction equipment industry will be those who have the right sales and operations teams and business structures in place. There is likely to be an increase in demand for mid to senior sales and operations role in both the U.S. and U.K., and the retention of key members of staff will also be critical. For those looking to approach their growing talent needs strategically in order to minimise costs and maximise opportunities, understanding how successful companies are building their sales and operations teams through talent mapping, building a pipeline of talent to minimise recruitment delays and benchmarking industry salaries to remain competitive should be considered.
References
KHL, Global Equipment Sales Hit Record High
Construction Products Association, UK Construction Growth Downgraded Again as Uncertainty Intensifies
KHL, Growth for US Construction
Associated Builders and Contractors, Inc., ABC Predicts Construction Sector will Remain Strong in 2019
