CECE Report of Activities 2021 by CECE

REPORT

OF ACTIVITIES

2021

2022: DEFINING MOMENT FOR THE REGULATORY LANDSCAPE Since January 1st 2022 Alexandre Marchetta of Group Mecalac and EVOLIS is the new President of CECE. He takes over this leadership role to steer the European industry association in 2022 and 2023, at a key moment of economic recovery. Alexandre Marchetta is President and CEO of Group Mecalac, a member company of French industry association EVOLIS.

As the CECE President I plan to dedicate relevant efforts to the EU regulatory agenda. Indeed, in 2022 we expect the proposal for a harmonised system of road circulation requirements across the EU. Moreover, 2022 will be the key year for the Machinery Regulation. The legislation on machinery products is one of the most important for the CECE industry. Since the beginning of the consultation process, CECE has been engaging with relevant stakeholders and, following the steps undertaken during Niklas Nillroth’s Presidency, CECE will continue to take part in the discussions with the legislators and inform the debate on what Europe needs to remain a competitive and trustworthy manufacturing bloc. The beginning of my Presidency coincides with France taking over the rotating Presidency of the Council of the European Union. As the CECE President I will devote particular attention to the issue of economic recovery, one of France’s key priorities while heading

the EU. In this area, CECE believes it is time to grasp the market opportunities arising from the EU Recovery Plan and continued investments in the EU built environment. will continue the long-term strategy of my predecessors to embrace the twin transitions towards a digital and decarbonised economy. CECE will monitor the rollout of the Green Deal proposals and strive to position Europe as a leader of low-impact solutions.

Alexandre Marchetta, CECE President for term 2022-2023

Moreover, I am pleased to announce the venue and the date of the next major CECE event. The next CECE Congress will be hosted by EVOLIS in Chamonix, France from 19th to 20th January 2023. All members and partners are invited to save-the-date.

Alexandre Marchetta CECE President

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

OUR MEMBERS

CECE MISSION STATEMENT

AEB AGORIA ANMOPYC CEA EVOLIS FFTI FMIB FMMI IMDER SVSS SACE

CECE is the voice of the European construction equipment manufacturers. Founded in 1959, we are a European-level federation that engages with EU policymakers on behalf of our membership. Through our national member associations, we speak on behalf of an industry made of 1,200 companies employing 300,000 people and creating a value of € 40 billion annually. Relying on a wide network of industry experts engaged across a broad range of policy areas, we coordinate the views of our members with the aim of achieving a fair and competitive regulatory environment. Our advocacy work addresses the broad spectrum of policies that impact the manufacturing and the construction industries in Europe. We are committed to Constructing the Europe of Tomorrow by securing a globally competitive European construction equipment industry through four main goals.

UNACEA VDMA

OUR ASSOCIATE MEMBER LIUGONG DRESSTA

CECE TOPIC-O-METER

Environment

Cybersecurity Data management E-privacy

Market access 2022 Economic & industrial policy Standardisation policy Trade policy

2023

preparatory phase legislative phase implementation

Artificial Intelligence

Circular economy CO2 emissions Engine emissions Noise LEZ Waste

Safety

political phase

2023

2022

2023

Electric & electronic t h e ra d a r

2022

2023

Chemicals

Digitalisation

publication in the OJEU

2022

Machinery legislation Road circulation

Legend on the radar - on the CECE radar political phase - political discussions at the EU level preparatory phase - evaluation studies; impact assessments; stakeholders consultations legislative phase - EU Commission proposals; readings by EU Parliament and Council; trialogue negotiations; final proposals & publication in the OJEU implementation - entry into force & monitoring

2021: AN INTENSE YEAR FOR THE CECE TRADE POLICY COMMISSION Global trade is a key area for the European construction equipment industry. The turnover of our industry amounts to EUR 40 billion, of which EUR 26 billion stems from sales beyond national borders, both in the Single Market and outside the EU. The above figures underline the relevance of international trade for our sector.

of the steel safeguard measures, as they substantially contributed to the high increase in EU steel prices suffered by the construction equipment industry. Moreover, the coalition sent a joint letter to the EU institutions requesting that the EU safeguard measures be reassessed now that the US additional tariffs on EU steel and aluminium will be removed.

2021 was a year full of developments on trade policy for the construction equipment industry.

BREXIT: the work of CECE in 2021 has been to monitor the implementation of the agreement, analyse the degree of regulatory alignment, and provide practical information to members about the recent deadline extensions by the UK authorities on marking requirements and type approvals. CECE keeps monitoring the situation.

EU-US TRADE RELATIONS: in June, CECE with other European & American industry associations co-signed a joint statement reiterating to lift the retaliatory tariffs on construction machines and other products unrelated to the ongoing WTO & Boeing disputes, which contributed to give the final push to the 5-year suspension. STEEL SAFEGUARD MEASURES: in February CECE with a coalition of steel downstream users’ industry, issued a joint statement opposing the extension

MERCOSUR: given the advantages of the EU-Mercosur agreement for the European machinery sector, CECE decided to join a coalition of industries supporting the ratification of the EU-Mercosur agreement. In June the coalition issued a joint statement highlighting the benefits of

the agreement which, once ratified, will dismantle high tariffs currently applied by Mercosur countries to EU machinery, including construction equipment. SOUTH AFRICA: in 2021 CECE was informed of the investigation of the South African International Trade Administration Commission to increase the customs duty rate on dumpers designed for off-highway use. To voice the concerns of the European construction equipment, CECE had several exchanges with the European Commission. In addition, in response to the investigations CECE sent submissions to ITAC to oppose the prospects of an increase in the customs duty rates on ADTs as well as on any kind of dumpers.

#DIGITALCONSTRUCTION Reference Architecture Framework to interoperable digital platforms for construction Area-specific guidelines: leverage interoperability and data sharing in construction Large scale data sharing, European big data platform for the construction sector

Environmental performance

Business, market and collaboration

Public services and initiatives

Core guidelines : enable interoperability and data sharing in construction Pillar 1 : interoperabilité, common language and process Data formats, models and semantics, use of open standards Semantic interoperability, Data dictionaries

Data models and formats

Standards for data exchange & access

Pillar 2 : control over the use of data Data storage, security and sovereignty Data security

Data ownership GDPR compliance

Data sovereignty

Data ownership in business relations

Common European Data Spaces,data infrastructures

Transparency on the use of data

Data qualification and trust

Data availability and sustainability

Data certification

FAIR data principles

Data with contractual or regulatory value

Data sustainability

Information management and processes Collaboration, Common Data environments

Data management along the lifecycle,digital twin

Governance and access to standards and frameworks

CECE and its members are embracing and leading the digital transformation of the construction industry. In a collaborative approach through the industrial value-chain, smart machines are creating connected jobsites, which will advance automation technologies to unthinkable level of unmanned construction machinery. This process is long and needs to be followed through a strategic approach. This is ensured by the CECE High-Level Technical Policy Advisory Group, which monitors digitalisation as a key industry megatrend and merges this area with the

key policy developments coming from the European Commission. In 2021, this group hosted DG GROW representatives to present the renewed EU High-Level Construction Forum, which will outline a transition pathway towards a digitised European construction sector. In line with the collaborative spirit of the digital transformation, CECE has been involved in the first ever EU-funded project to digitise the construction industry, DigiPLACE. The project was concluded in May 2021, delivering a Reference Architecture Framework and a Strategic Roadmap towards

the development of digital platforms for construction in Europe. For more information visit digiplaceproject.eu/ finalbooklet. The CECE Task Force on Digitalisation has been created in 2019 to follow the market developments around telematics and connectivity, digital technologies and IoT and the impact of the EU data policies on the digital transformation. In 2021, this group hosted the first ever joint members’ meeting with the European Rental Association to talk about telematics monitoring and machinery automation tools.

OUR TEAM RICCARDO VIAGGI Secretary General

CAIO LOBO

ROMA GUZIAK

Technical Policy Manager

Communications Manager

SEBASTIAN POPP

MARTINA SCHERBEL

Secretary Statistical Commission

BELÉN BRAVO

Technical Policy Manager

ANETA OLŠANOVÁ

Communications & Events Assistant

Press Officer

OUR WORK The daily tasks of the Committee for European Construction Equipment (CECE) are managed by the CECE office in Brussels, Belgium, consisting of two technical policy managers, the communications manager, a public affairs manager and the secretary general. The team’s work is supported and supervised by the Executive Committee, composed of the managing directors of the national member associations. The Executive Committee meets six times a year. Twice a year, the CECE Steering Group – the highest governing body of CECE – gathers the presidents of the national member associations, who discuss the CECE work programme, review the organisation’s achievements, set priorities and approve the work of the Executive Committee. The Steering Group is chaired by the CECE President, seconded by two VicePresidents, each elected for 2 years. The president is also the first CECE representative in external relations, supported by the secretary general. The organisation is completed with a General Assembly, which approves the budget and accounts, and settles statutory issues. The work of CECE is organised by topics as well as products. The work on topics is handled by Commissions supported by dedicated Project Teams for specific tasks. Topics relevant for a particular

range of products are handled via Product Groups. The organisation and proper functioning of the Commissions, Teams and Groups, as well as the timely interaction and consultation between them, is initiated and coordinated by the CECE office. For the large amount of technical regulatory dossiers two Commissions and several Project Teams have been established. The High-Level Technical Policy Advisory Group (HLTPAG) consists of high-level technical and engineering executives of leading companies with a strong interest in European affairs and their impact on the business. The group advises CECE with regard to strategic positioning, sector priorities and industry positions on technical subjects. The High-Level Group on CO2 (HLCO2) advises CECE on industry positions and priorities on environmental subjects. The group’s members support the advocacy work of CECE through speaking engagements or participation in meetings with policy makers. The Technical Commission (TC) brings together a wide variety of technical experts from national associations and companies. They review the work of the Project Teams (PTs) and discuss technical topics not covered by a specific PT. The TC is also a platform to inform non-PT members about the ongoing work. For advice on and support of the CECE

advocacy strategy, CECE regularly calls on the company representatives that are operating in the “EU capital”, the CECE Brussels Advocacy Network. Product Groups (PG) consist of industry representatives manufacturing the same type of equipment. They meet to exchange information - in accordance with European regulations and laws on competition - and to promote technical and economic cooperation. CECE’s Statistical Commission (SC) brings together statistical and market experts from member associations and companies in order to optimise the statistical service of CECE. The representatives of CECE’s Statistical Commission together with representatives of the sister associations from Japan, Korea and North-America form the Intercontinental Statistical Committee (ISC), which takes care of the worldwide statistical systems for the construction equipment industry.

OUR HIGH-LEVEL EXPERT GROUPS ON TECHNICAL & ENVIRONMENTAL SUBJECTS #DIGITALCONSTRUCTION For the large amount of technical regulatory dossiers two expert groups have been established. The High-Level Technical Policy Advisory Group (HLTPAG) consists of CTOs of companies with a strong interest in European topics, nominated by the national member associations. The group advises CECE with regards to strategic positioning, sector priorities and industry positions on technical subjects. The group’s members support the advocacy work of CECE through speaking engagements or participation in meetings with policy makers. CECE’s member companies are embracing and leading digitalisation, with smart machines creating connected jobsites. Through the leading role of CECE High-Level Technical Policy Advisory Group, CECE has undertaken a structured approach to digitalisation. Read more on p. 7.

#CO2 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 CO2, further in the coming years. The CECE High-Level Group on CO2 continues to explore the CO2 reduction potential for the field of construction 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 optimisation 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.

OUR TECHNICAL WORK HIGHLIGHT IN 2021:

2021 has been a very busy year for the CECE PTs and Technical Commission. The COVID-19 pandemic did not allow to have physical meetings and the coordination of activities was done online. The review of the Machinery Directive and harmonised standards continued being the focus of the CECE Technical Commission in 2021. Since the publication of the EU Commission proposal for the the Machinery Products Regulation, the Technical Commission actively engaged in the political and technical discussions with legislators and with the rest of non-road associations. The evaluation of the new initiative on Artificial Intelligence and last developments on cybersecurity consolidated a good coordination between PT Machinery and PT Data.

TECHNICAL COMMISSION

Chair: Stefan Nilsson, Volvo CE Number of experts: 50

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.

ADVOCACY ACTION

2021 was an intensive year mainly on advocacy related to the Machinery Directive. In environmental topics, CECE shared views with legislators on the Batteries and Waste regulation and PFAS REACH restriction.

CECE is also engaged with European Commission’s work associated with Outdoor Noise Directive and road circulation and will continue to provide concerns to the European Parliament and Council on environmental topics such as the proposal for a new Batteries and Waste Batteries regulation. Regarding chemicals, CECE also has become more active following REACH developments and provided input to some proposal such as the restriction for PFAS. In emissions related topics, the extension of the transition period for stage V and the monitoring of worldwide developments was also a point followed by PT engine emissions. The Technical Commission was regularly updated on the technical requirements from Brexit and trade topics and define actions related to internal market for the evaluation of the New Legislative Framework (NLF). The Technical Commission calls were a good opportunity to directly exchange with legislators and facilitate the prioritisation of actions. In terms of reporting and communication, during the CECE Summit in October 2021 a focus point on the Machinery Directive review was presented to a broader audience. The Joint Technical Liaison Meeting (JTLM) was not held in person in 2021, however, as for the previous year, the international associations for construction machinery successfully exchanged via an online platform that facilitated the regular update on the latest regulatory developments.

PRIORITY FOR 2022:

CECE will continue in 2022 to provide input to the European Parliament and Council for the review of the Machinery Directive. Other relevant new initiatives are expected that will require the PTs and TC engagement such as the of the European Commission’s proposal on road circulation, the Data Act and the Sustainable Product initiative.

QUOTE FROM THE CHAIR:

“Yet another year has passed with restrictions due to the pandemic. Despite not being able to meet each other in person we have continued our important activities in an effective way. Much has been accomplished during 2021. This thanks to the highly engaged participants of the Project Teams, Technical Commission and the CECE staff. In 2022 we will have many new regulatory initiatives to handle, and I can promise an intensive year with many opportunities for continued good collaboration.”

HIGHLIGHT IN 2021:

In 2021 the Project Team 3R continued to monitor the implementation of the SCIP database and defined position regarding the Batteries and Waste Batteries regulation. PT3R also collected views of the PFAs restriction for REACH and followed the developments of the European Chemical Strategy and the Circular Economy Action Plan.

PRIORITY FOR 2022: PT 3R

Chair: Sofia Cerny, Volvo CE Number of experts: 45 Restriction on use of substances in the construction machinery sector, constraints in view of machinery design, production and sales and availability of raw materials, those are topics that are covered by the CECE Project Team 3R. CECE follows the Circular Economy Action Plan and related legislations, like REACH regulation, Waste Framework Directive and Ecodesign Directive.

The review of REACH and the F-gases regulations is a priority for the group in 2022. PT3R will also continue advocacy regarding the Batteries and Waste Batteries regulation vis-àvis of the EU Parliament and Council and will evaluate the SPI EU Commission proposal.

QUOTE FROM THE CHAIR:

“The actions steamed from the Green Deal and the Circular Economy will have a major impact on the construction machinery sector. Sustainable principles will be progressively introduced in European legislation and this will concern the whole supply chain. CECE PT3R group of experts are ready to evaluate and take necessary actions on upcoming initiatives in 2022.”

ADVOCACY ACTION

Project Team 3R provided feedback to the relevant regulatory bodies regarding the EU Commission proposal on Batteries and Waste Batteries regulation, highlighting main concerns for the sector and providing points of improvement. The group was also part of the second national consultation on PFAs restriction in REACH.

HIGHLIGHT IN 2021:

In 2020 PT engine emissions followed the extension for the transition period for Stage V in the range between 56kW and 130kW and the publication of the new Regulation (EU) 2021/254 in May 2021 providing a 6-months extension for the production of machinery and 9-months extension for their placing on the market. The group was also regularly updated on the technical requirements defined by the UK government for Brexit and, with the support of the national associations, updated the requirements for construction machinery in the Low Emissions Zones across Europe. Thanks to regular exchanges with the associations members of JTLM, PT engine emissions followed main global development on emissions requirements for our sector.

PRIORITY FOR 2022:

Considering the publication of new regulations and delegated acts related to stage V, the group will work on the update of the CECE stage V guidance documents. PT engine emissions will monitor new UK technical requirements, LEZ and global emissions.

QUOTE FROM THE CHAIR:

“The last 12 months have been challenging for all and I would therefore like to take this opportunity to thank all PT Engine Emissions members for their continuous contribution to the work. During 2022 there are a number of ongoing topics that we continue to follow, however, given the high levels of regulatory activity seen in many regions I fully expect that further legislative initiatives will arise throughout the course of the year that will require our analysis.”

ADVOCACY ACTION

CEA regularly informed the group on the main developments defined by the UK government for Brexit that helped members to support their companies on a timely follow-up.

PT ENGINE EMISSIONS

Chair: Jason Ong, Komatsu Number of experts: 45 European construction equipment manufacturers contribute to 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 non-road mobile machinery as well as closely following the latest developments in related strategic initiatives at a national and European level.

HIGHLIGHT IN 2021:

In 2021, the team focused on Cybersecurity and Artificial Intelligence matters. The Project Team continued to follow the different actions in the Cybersecurity space with a focus on the EU Commission’s proposal for a revised Directive on Security of Network and Information Systems (NIS2 Directive). In coordination with PT Machinery, the PT Data defined amendments to the EU Commission’s proposal for a regulation on Artificial Intelligence (Artificial Intelligence Act).

PT EUROPEAN DATA POLICY Chair: Charlotte Le Bozec, Caterpillar Number of experts: 50

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 experts of CECE Project Team European Data Policy.

PRIORITY FOR 2022:

The PT Data will continue to focus on Cybersecurity (NIS2 and the expected proposal on the Cyber Resilient Act) and the Artificial Intelligence Act.

QUOTE FROM THE CHAIR:

“Cybersecurity is key to bring trust in the digital market. It is the responsibility of all, from the manufacturer to the end-user, to work together for a cyber safe EU market.”

ADVOCACY ACTION

Cybersecurity is being tackled from different angles (Cybersecurity Act, NIS 2, new Cybersecurity Resilient Act etc…) and the PT Data sees the fragmented approach to cybersecurity as a risk that could hamper the certification of products notably in the Construction Industry. As a result, the team is advocating for a coherent legislative framework. As regards Artificial Intelligence, CECE suggested a new definition of Artificial Intelligence systems that has been promoted to amend both the Artificial Intelligence Act and the Machinery Products Regulation (MPR) proposals.

HIGHLIGHT IN 2021:

The European Commission was not very active on the Outdoor Noise legislation file during 2021.Only one EC Noise Expert Group meeting took place in June 2021, the EC decided to start working on updating the test codes and measurement methods in the Outdoor Noise Directive. In 2019 CECE published an extensive Position Paper on noise limits for the construction equipment industry and presented it to the European Commission, which remains updated.

PRIORITY FOR 2022:

CECE will work with its members to provide an update of the test codes and measurement methods for the EC’s changes of the OND’s Annex III. The EC is expected to work on this update throughout the year 2022 and PTN will be following closely each step and reacting accordingly.

QUOTE FROM THE CHAIR:

“Quiet machines still serve to protect the environment and health, but the work processes/process noise usually determine the environment and a quieter machine has no influence on this. To obtain more comparable values here, standardization of the test systems is imperative. Where not yet given, the manufacturers create such test codes. The EU Commission, however, now wants to revise the existing test codes as part of a revision. A lot of work for the machine manufacturers in 2022, because only they are the real experts in this field.”

PT NOISE

Chair: Darius Sossdorf, VDMA Number of experts: 72 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 2021:

In 2021 the Industry Task Force (ITF) composed of CECE, EGMF, CEMA, EFM and EUnited participated in an EC workshop to discuss both the scope and policy architecture for the future legislation harmonizing road circulation requirements for mobile machinery and towed equipment. CECE is holding the Secretariat of the ITF throughout 2021, when it organized a bilateral meeting between industry and the EC to discuss both the upcoming publication of the impact assessment and how the future legislation will look like.

PRIORITY FOR 2022: PT ROAD CIRCULATION

Chair: Alessandro Rossi, Caterpillar Number of experts: 47

The task of harmonising EU safety requirements for circulation of mobile machinery on public roads is the scope of 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.

The priority for 2022 will be to follow up on the publication of the European Commission’s proposal. We expect the involvement of the PTR in every step of the way, ensuring the proposal and future amendments by the European Parliament and Council follow the position of CECE members.

QUOTE FROM THE CHAIR:

“With CECE chairing the ITF and with the legislation development at a key stage the PT Roading needs to ensure engagement from a broad number of members and to keep the European Commission focused on the project and committed to their schedule timeline. The main objective will be to have the draft legislation available in 2022 and to ensure it will not create any undue challenges to industry whilst providing a clear benefit for our customers finally granting an EU harmonised approach for road circulation of our products also, something that is long time missing. We will also need to keep supporting the EC in their effort to find a suitable compromise with all stakeholders that will grant a balanced outcome.”

ADVOCACY ACTION

As in 2020 and 2021, CECE put the road circulation for construction mobile machinery on the top of priorities and particularly in 2022, spreading the message among regulators on the urgent need for harmonisation. In addition, CECE is holding the rotating Secretariat of the Industry Task Force (ITF), created to cooperate with the European Commission on the preparatory work on the file. There have been bilateral meetings with the EC organized by CECE to discuss the scope and policy architecture of the future legislation and numerous exchanges to ensuring that the ITF position was taken into consideration.

HIGHLIGHT IN 2021:

The European Commission published the proposal for the Machinery Products Regulation and CECE’s PTM published numerous position papers reacting to the publication, proposing amendments to the European Parliament and reacting to both the publication of the Draft Internal Market and Consumers (IMCO) Report and other IMCO amendments. We have been closely following the reactions and discussions around the proposal put forward by the EC, cooperating with different organizations to ensure that industry is well-prepared for the discussions in the EP and Council. In addition, PTM worked on different correlated topics, including the availability of harmonised standards under the current Machinery Directive, the interplay between the MD and the Pressure Equipment Directive (PED). Also, in parallel, together with PT European Data Policy, we have been cooperating to provide feedback to the European Commission on the issues related to the delegated acts under the Radio Equipment Directive (RED), e the proposal on the Artificial Intelligence Act (AI) and cybersecurity topics.

PRIORITY FOR 2022:

The Machinery Products Regulation proposal is the main issue in the agenda of the PTM for 2022 as well. The intention is to continue to actively engage with the European Parliament and Council of the European to ensure that the position of CECE members is being reflected in the amendments tabled for the proposal.

QUOTE FROM THE CHAIR:

“It has been a very busy year for PTM and I want to thank all the members for their hard work on MPR file as well as the other important issues that we have reacted to during this period. It is clear that 2022 will be just as challenging as we focus more on our engagement with the political institutions during this critical phase in the development of the MPR.”

PT MACHINERY

Chair: Jason Ong, Komatsu Number of experts: 44 Within the CECE Project Team Machinery, the experts have the task of evaluating the machinery directive and its performance, and to identify area for improvement.

ADVOCACY ACTION

In 2021, CECE has been meeting with Members of the European Parliament, Political Group advisers and Member States’ authorities, including Permanent Representations in Brussels, to engage and present the position of construction equipment manufacturers. In parallel, CECE has not only organized but also participated in different events, including a stakeholder event organized by the European Parliament, to both present and further discuss its position on the key points of the Machinery Products Regulation proposal.

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 2021:

After an active participation in the drafting of the technical document related to road circulation requirements for towed equipment and a promotion of this document during last years, follow-up and participation in some meetings of the CECE Road Project Team and the European Industrial Task Force in charge of the road circulation file.

PRIORITY FOR 2022:

Define a new roadmap for the road equipment product group.

PG ROAD EQUIPMENT

Chair changeover: Stéphane Guillon, Fayat Group Secretary: Richard Cleveland, EVOLIS Number of experts: 16

QUOTE FROM THE CHAIR:

“Our ambition is to define a roadmap for road construction equipment: all together we must find common solutions to address the ecological transition challenge.”

HIGHLIGHT IN 2021: Economics and statistics.

PRIORITY FOR 2022: Economics and statistics.

QUOTE FROM THE CHAIR:

“The Corona crisis ended in 2021 in a new expansive market cycle driven by new infrastructure works and concentrated mainly in Europe and North America. Perspectives for the 2022 are still positive, but deeply marked by high costs of logistics and raw materials, as well as shortage of components.”

PG TOWER CRANES

Chair: Marco Guariglia, Liebherr Secretary: Luca Nutarelli, UNACEA/CECE Number of experts: 8

HIGHLIGHT IN 2021: Economics and statistics.

PRIORITY FOR 2022: Activation of new product lines.

QUOTE FROM THE CHAIR:

“In developed countries the recovery is very strong with good perspectives on 2022. Main problems are: lack of material and components (specially chassis), disruption of the supply chain, doubts on the real consistency of the demand, uncertainties for the future, drop of profitability in the near future due to increase of raw material prices.”

PG CONCRETE EQUIPMENT

Chair: Davide Cipolla, Cifa Secretary: Luca Nutarelli, UNACEA/CECE Number of experts: 90

HIGHLIGHT IN 2021:

The pandemic continued to take its toll. The group could not meet in person in 2021, and Torsten Ahr (Epiroc) could only virtually pass the baton on to the newly elected Chairman Daniel Dupuy (Arden Equipment).

PRIORITY FOR 2022:

The product group wants to resume face-to-face meetings and plans for a larger information and networking event, ideally combined with a site visit.

QUOTE FROM THE CHAIR: PRODUCT GROUP HYDRAULIC ATTACHMENT TOOLS Chair: Daniel Dupuy, Arden Equipment Secretary: Sebastian Popp, VDMA/CECE Number of experts: 50

“I am very excited to chair this group in the coming years. Our industry is full of energy and we are confident to make further progress on market intelligence, contribute to technical legislation with our knowledge, and strengthen the network within the industry and with our partners.”

CECE STATISTICS & ECONOMIC AFFAIRS CECE collects and provides up-todate market data for many types of construction equipment, and provides a leading indicator for the development of European construction equipment markets. The information is covered 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. 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.

The CECE Business Climate Index summarises 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.

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 the members with a regular business trend indicator of the European construction equipment industry. The companies taking part in the Barometer receive a report about the economic situation in Europe each month.

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

CECE BUSINESS CLIMATE INDEX

source: CECE Business Barometer, February 2022

CECE Business Climate Index 100 80 60 40 20 0 -20 -40 -60 -80 -100 Feb-17

Feb-18

Feb-19

Feb-20

Feb-21

Feb-22

Business Index 20

CECE STATISTICAL COMMISSION

Chair: Bernhard Gruber, Liebherr Secretary: Sebastian Popp, VDMA/CECE Number of experts: 30

HIGHLIGHT IN 2021:

In the second year of CECE’s Intercontinental Statistics Committee secretariat term, we shifted our work towards virtual task group meetings dealing with statistics proposals on individual products, e.g. crawler dozers, trenchers, and crawler carriers.

PRIORITY FOR 2022:

To strengthen the network of industry colleagues by hopefully resuming face-to-face Statistical Commission meetings.

QUOTE FROM THE CHAIR:

“I am looking forward to chairing the CECE Statistical Commission. With this role, I intend to push forward the international cooperation in statistics work, which is becoming more and more important for the CECE members.”

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CECE QUARTERLY ECONOMIC BULLETIN AN NUAL ECO NO

MI C

REPORT

No.4 M A R C H 2018

For members and partners only. The Quarterly Economic Bulletin provides insight in the situation of the European construction equipment markets as well as the macro-economic environment.

ary

Executive Summ

ction European constru s equipment perform text con al glob a in l wel

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 was the nomic and financial n sector in 2017 growth in the constructio housebuilding market.

Dear reader,

Y MINING INDUSTR

financial thousands of employprices and better manufactured by CECE Annual ery, Improving commodity mining companies point maintained by thousands global elcome to the new ees and used and offices, equipment. results amongst the third edibuild the houses, demand for mining Economic Report, of others, helps to towards improving railways, roads, bridges, tion in the new format. schools, factories, that connect people, the tunnels and canals across an overview of and serve citizens The report contains in- boost economies EQUIPM ENT MARKET situation in Europe, growth Europe and the world. macro economic 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 the on respectively). slowed down in represents about for aptries, and then focusses Q4 (17% and 23%, look dustry 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 the first time, the below the 2007 CECE ers are principally small and from the national also large Eurocludes information light companies, but there are with s, shedding more L PERSPEC TIVES multinational companies REGIONA and member association pean European nts in the in Europe. European conon regional developme production sites of growth for the ors stable sector. 2017 was a year the common denominat markets. 2018 expects construction equipment is pub- Small or big, to innovate, the high level struction equipment Economic Report investments. The CECE Annual to help are the capacity markets and further and the large comat www.cece.eu of product diversity lically available ring supply chain. and understanding plexity in the manufactu Europe’s promote the knowledgea wider audience. OUTLOO K key example of The sector is a Europe of the sector amongst in other words, n equipment in- engineering leadership and, Northern and Westernlevels of Major markets in in constructing the The European constructio g historically high part of the European a fundamental asset that are experiencinsee further growth in the near e economy that dustry is an important plays a significant is competitiv to and and unlikely are should again sales, 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 . The sector offers produced by a small be the regions that in the European market is a and its direct neighbours used in construc- This report is CECE member associations tools” the mark the fifth A 5% to 10% increase 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, , and wish you pleasant in the cycle in 2019. and societal improveme be directed to equipment can downturn a and making before always welcome chines such as road concrete equip- are info@cece.eu. earthmoving machines, team CECE cranes. The ment and tower and innovative machinThe sector’s durable 1 REPORT

CONST

RUCT SECTO ION EQUI PMEN R IN EU T ROPE

CECE ANNUAL ECONOMIC

March 2018

40 BN

REVENU

€

300 00

OVERAL 0 EMPLOY L MENT

1 200

COMPA

NIES

CECE TECHNICAL BULLETIN

For members and partners only. The Technical Bulletin describes developments in the field of technical regulation at a detailed level.

CECE ANNUAL ECONOMIC REPORT

CECE publishes its Annual Economic Report in the spring of each year, providing an indepth 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.

% SHARE OF PRODUCGLOBAL TION

MOST

26 BN

EXPORT €

COMP ANIES

CECE REPORT OF ACTIVITIES

ARE SM

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

22% 39% 11% <10 MN

€

10-50

16%

MN €

50-100

11%

100 MN

CECE ANN

UAL ECON

OMI C

REPO RT

€ - 1 BN

€

>1 BN

MN €

€

Source

: McKin

sey 2016

March

2018

OUR VIDEOS CECE is making a conscious effort on gaining more visibility and growing its YouTube channel where you can view all our videos. With almost 70 videos, including a corporate CECE video, CECE movie on sustainable construction, animation on CECE Annual Economic Reports and various interviews with EU institutions representatives and industry experts, CECE has gained over 12K views in 2021 on its YouTube channel and on the social media accounts. Moreover, the recordings of CECE webinars in 2021 gained over 700 views! Visit our YouTube channel to stay in touch!

CECE SUMMIT TAKES PLACE IN BRUSSELS #WEMAKE2BUILD CONSTRUCTING THE EUROPE OF TOMORROW

The CECE Summit 2021 took a deep dive into future scenarios of jobsites and looked at innovations in connected industries. The image of construction equipment is changing towards a modern and digitalised industry, which will be crucial in building the Europe of tomorrow and wants to attract the younger generations. This has an impact on leadership and company structure as diversity also plays a more important role and women will become stronger and more visible in this technical environment. Constructing the Europe of Tomorrow “Constructing the Europe of tomorrow is our joint mission – your machines quite literally help build our future” stressed Gerassimos Thomas, Director-General

for Taxation and Customs Union, European Commission in his opening statement. “In our motto #WeMake2Build lies the awareness that safe, efficient, sustainable and innovative machines are fundamental pieces of the puzzle to shape and build the Europe of tomorrow”, said Niklas Nillroth, CECE President, welcoming the hundreds of participants to the online hybrid event. This implies that digitalisation, automation, construction machinery operated with synthetic fuels and new drive concepts will move further and determine the new image of the industry. It also implies that job qualifications will change to higher levels in some regards and attract younger people to find their future in a surrounding with artificial intelligence, digital twins and digitalised production processes.

Leadership Through Diversity Moreover, not only job descriptions but also leadership and company structures will change. Due to the lack of skilled workers and the demographic development – Europe is aging quickly – women will have a further role to play in technical professions and leadership positions within construction. “Creating change in an industry that has stagnated for more than 30 years is crucial in order to attract diverse workforce towards construction”, emphasised Maria Bøhnke, Project Manager at Boss Ladies during the panel discussion on diversity and leadership. In the same session, Nadim Penser, SVP of Human Resources at Epiroc, showed how companies can lead by example and commit to improving diversity in leadership roles and at all levels of the workforce.

The Role of the Machinery Regulation A further focus of the Summit was the impact of revised legislation on machinery. CECE’s reality check, delivered by Liebherr’s Eugen Schobesberger, of the European Commission’s proposal for a Regulation on Machinery Products showed that it will bring further economic burden and unnecessary bureaucracy. An instant poll during the event confirmed this assessment with the majority of respondents fearing increased financial and administrative burdens for European manufacturers.

Svenja Hahn, Member of the European Parliament and shadow rapporteur of the Renew Europe Group for the AI regulation and the Machinery products regulation, underlined the relevance of the EU machinery sector. She stressed how she commits to regulation that stimulates innovation, to limit red tape and disproportionate burdens. The discussion around the Machinery Products Regulation is a clear example of how higher safety can be better delivered by strengthened market surveillance, rather than

third-party certification. MEP Hahn concluded by sharing her confidence that the Parliament will improve the Commission’s proposal of the regulation. The event was sponsored by Configit, Hexagon, Moog and Trimble. Over 500 participants from 30 different countries took part in the event. ISIT OUR YOUTUBE V CHANNEL TO VIEW THE STREAM OF THE CECE SUMMIT 2021!

Organised with the support of

CECE ENGAGES IN IMPORTANT STAKEHOLDERS’ INITIATIVES InfraROB, European project seeking for automated autonomous solutions for the integrity, performance and security of diverse infrastructures develop collaborative robotised safety systems for construction workers and road users. The project further aims to integrate pavement management system and traffic management system solutions for a holistic, unified management of road infrastructure and live traffic.

InfraROB is the European project aiming at maintaining integrity, performance and safety of the road infrastructure through autonomous robotized solutions and modularization. There are many health and safety risks when it comes to using and working on roads. The EU-funded InfraROB project will focus on automating, robotising and modularising road construction and maintenance work. More specifically, it will develop, among others, autonomous robotised systems and machinery to carry out line marking, repaving, and the repair of cracks and potholes. It will also

InfraROB is European Commission’s Horizon 2020 project, that will roll for 42 months and has been granted with an estimate of five million euros. University of Vigo research group is leading the consortium of 18 partners including companies, tech-centres and consulting companies of eight countries (Spain, Portugal, Italy, Belgium, Germany, Austria, Swiss and Denmark).

To learn more, visit www.infrarobproject.com @infrarob InfraROB

CECE is one of the partners involved in project’s communication and dissemination activities. Moreover, CECE is responsible for creating and managing project’s social media.

The Sustainable, Long-term Investments and Competitive European Industry Intergroup leads the debate on the EU industrial policy

The activity of the Intergroup focused in 2021 on the promotion and the organisation of the following industryrelated events which fed the debate on the EU industrial policy. • Protecting the competitiveness of low carbon and circular industries in Europe: the case of Aluminium (26/01/2021) The webinar, chaired by MEP Maria da Graça Carvalho, focused on the material dimension of the global energy transition and the challenges for the European Aluminium industry stemming from the EU 2030 Targets Plan Communication. Speakers included MEPs Simona Bonafé, Christophe Grudler, Susana Solís Pérez and Anna-Michelle Assimakopoulou together with representatives from the World Bank, the European Commission and the aluminium industry.

• The EU Textile Strategy: source of competitiveness? (03/06/2021) In view of the release of the European textile strategy by the European Commission later in 2021, the event, sponsored by Euratex, addressed critical factors for building a competitive European textile industry. In particular, the event discussed what should be prioritized in the European textile strategy in order to build a new business model based on sustainability, digitization and fair trade. • Technology and innovation shaping Europe’s competitiveness (25/06/2021) The event, sponsored by Orgalim, was hosted by Maria da Graça Carvalho, with Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth. During the event it was discussed how the various Horizon Europe programmes and other initiatives can boost key technologies and solutions underpinning EU policies and sustainable development goals. It was also debated how the implementation of the updated Industrial Strategy will need to link to these programmes, to boost innovation and enable Europe to further strengthen its position as a global technology leader.

• The potential of a liquid fuels strategy for the decarbonisation (15/11/2021) The event, sponsored by FuelsEurope, was an opportunity to discuss the role and the potential of low-carbon liquid fuels for the climate transition, in such an historical moment when the “Fit for 55 Package” is being shaped. Specifically, the panellists and the audience debated on the combination of technology solutions to be deployed for the future of the transport sector as a whole (road, maritime and aviation) in order to allow both climate neutrality by 2050 and industry competitiveness.

To learn more, visit www.investmentindustryintergroup.eu @SLICEI_IG

CECE, who led the 2019 campaign for the establishment of an Intergroup on the competitiveness of the European industry, secured a seat in the Secretariat of the Intergroup managed with Orgalim and coalition of national promotional banks.

The Construction 2050 Alliance – an ambitious political initiative for construction

CECE as a member of the Steering Committee, together with Construction Products Europe, EBC and FIEC drives the political priorities of the Construction 2050 Alliance.

The green and digital priorities of the new Commission represent for construction significant challenges as well as unprecedented opportunities. Several legislative initiatives impacting construction will be adopted in the next 4 years. Against this background, it is key for all sectors of the construction value chain to build a constructive dialogue with the European institutions in unity and overcome fragmented sectoral representation. In this spirit, CECE along with other representatives of the construction sector at European level, decided to set up the “Construction 2050 Alliance” in order to convey coordinated political messages and raise the political leverage of the construction value chain.

In July 2021 the Construction 2050 Alliance held its second public event, which turned out to be a huge success. The event included interventions from the representatives of the European Commission, European Parliament, the Members States and members of the Construction 2050 Alliance. The event brought together 200 participants.

To learn more, visit www.euconstruction2050.eu

@ConstructEU2050 Construction 2050 Alliance

#EUConstruction2050

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 orea , KOCEMA K 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 EXHIBITIONS AND TRADE FAIRS COMING BACK TO THEIR FULL POTENTIAL CECE gives coveted patronage to a limited number of worldleading sector exhibitions. With this role, CECE contributes to achieving successful trade fairs and promote 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. Exhibitions and trade fairs were one of the areas of business most affected by the Covid-19 pandemic. Almost all of the

24-27/05/22

shows planned for 2020 and 2021 have been postponed or cancelled, due to both national restrictions and travel limitations. 2022 looks more optimistic with bauma, bauma CTT RUSSIA, bauma CHINA and M&T Expo part of bauma NETWORK all scheduled to take place this year.

To find out more about the CECE International Exhibition Partnership Programme visit www.cece.eu/exhibitions/ partnership-programme.

bauma CTT RUSSIA

Moscow, Russia

Exhibition Partner

M&T Expo part of bauma NETWORK

São Paulo, Brazil

Bronze Partner

24-30/10/22

bauma

Munich, Germany

Gold Partner

22-25/11/22

bauma CHINA

Shanghai, China

Exhibition Partner

30/08/22 - 2/09/22

31/01/23 - 3/02/23 bauma CONEXPO INDIA Delhi, India

Exhibition Partner

14-18/03/23

CONEXPO-CON/AGG

Las Vegas, USA

Gold Partner

MARCH 2023

SaMoTer

Verona, Italy

Bronze Partner

APRIL 2024

Intermat

Paris, France

Gold Partner

Published in February 2022

+32 2 706 82 26 info@cece.eu