A comment often heard at the recent 6069 World of Asphalt/World of Aggregates event in San Antonio, Texas was how the US construction market is recovering. The catchphrase for the global construction industry in 2013 seems to be ‘cautious optimism’. The growth rate may be modest and business activity is certainly a long way from the peaks of 2007 and 2008, but the improving conditions can only be good news for the construction sector.
In Europe the situation is less clear. The Nordic nations are all in a fairly good economic position and growth continues. Germany and the UK are also expected to see some modest growth according to the latest figures, while parts of Eastern Europe are also seeing good economic performance.
But in Southern Europe, the economic woes continue. It is not clear when conditions can improve and how countries such as Italy, Spain, Portugal or Greece can relieve themselves of their debt burden. The potential damage this may have for the European currency has yet to be seen.
As in previous years, the answer seems to lie in the emerging nations. The BRIC countries are all seeing good economic performance and construction activity is strengthening. The new Chinese Government is starting its progamme of infrastructure investment, with a major expansion of the high speed rail system westwards, as well as massive spending on highway construction. This will lift the Chinese economy and help local manufacturers in clearing stocks of unsold machines. The importance of China to the global economy cannot be understated. With the financial performance of all nations now closely interconnected, China’s importance as both an importer and exporter is crucial for the international construction equipment sector. Other countries too are seeing growth in construction activity with extensive highway works in India and Indonesia. The latter is of particular interest at present, which is why Indonesia was also selected as the partner nation for the688 Bauma 2013 exhibition.
But economic forecasts are merely predictions. Only at the end of 2013 will it be clear whether this cautious optimism has been justified.
In Europe the situation is less clear. The Nordic nations are all in a fairly good economic position and growth continues. Germany and the UK are also expected to see some modest growth according to the latest figures, while parts of Eastern Europe are also seeing good economic performance.
But in Southern Europe, the economic woes continue. It is not clear when conditions can improve and how countries such as Italy, Spain, Portugal or Greece can relieve themselves of their debt burden. The potential damage this may have for the European currency has yet to be seen.
As in previous years, the answer seems to lie in the emerging nations. The BRIC countries are all seeing good economic performance and construction activity is strengthening. The new Chinese Government is starting its progamme of infrastructure investment, with a major expansion of the high speed rail system westwards, as well as massive spending on highway construction. This will lift the Chinese economy and help local manufacturers in clearing stocks of unsold machines. The importance of China to the global economy cannot be understated. With the financial performance of all nations now closely interconnected, China’s importance as both an importer and exporter is crucial for the international construction equipment sector. Other countries too are seeing growth in construction activity with extensive highway works in India and Indonesia. The latter is of particular interest at present, which is why Indonesia was also selected as the partner nation for the
But economic forecasts are merely predictions. Only at the end of 2013 will it be clear whether this cautious optimism has been justified.
