CECE Report of Activities 2020 by CECE

REPORT

OF ACTIVITIES

2020

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

2021: TIME TO CONSOLIDATE AND GRASP OPPORTUNITIES I remember looking at my President’s mandate in January last year. I saw this as a positive moment to inspire change and lead policy discussions in a favourable business environment. Now I look back and I see the most unexpected period of my professional life, with society and business almost at a standstill, because of COVID. Who could ever imagine? However, I also see the positive signs of resilience and vitality, in the construction industry and in the economy at large. That’s why my second year as CECE President will be inspired by the willingness to consolidate that resilience and grasp the new opportunities that the post-crisis response has brought. I specifically see three elements of opportunity which I would like to highlight. First, the unbelievable acceleration of the digital transition in society and in the economy. This makes us more aware of what can become autonomous and what can be done remotely. I believe this is also increasing the acceptance of certain technologies that the construction equipment sector has been researching and developing in the past. The second element of opportunity is the European Commission’s ambition to make Europe the first carbon neutral continent in the world, which in fact is a corollary to the digital transition. Indeed, we know how automation and connectivity are tremendous contributors to increased efficiency and decreased impact on the environment. This is the sustainability commitment that we have explained in a CECE video released in October last year. This initiative and proof of commitment made me personally especially proud.

The third element of opportunity that is of key importance is the European Recovery Plan, the historic decision by the EU to create common debt instruments to finance an enormous recovery fund. CECE has been working on the roll-out of this fund to the right chapters of the construction and built environment. We have done that through the Construction 2050 Alliance already at the end of last year, knowing that this year will be the year of implementation. This will for sure remain on top of our priorities the year to come. Finally, we are really looking forward to hosting this year’s CECE Summit. This event will certainly be different from our last Summit as it will be fully digital, but its ambitions are unchanged. We want the Summit to be a moment of reflection and discussion where we provide our members, partners and friends with some thought-provoking material. We will also engage politicians and European officials in the longterm future trends for our industry. Because even if the forecast for 2021 is somewhat uncertain, the European construction equipment industry is committed to contribute to a prosperous and sustainable Europe, now and for the generations to come.

CECE President Niklas Nillroth stresses the importance of #BuildingTrust within the construction equipment sector during the #CECECongress 2020

Niklas Nillroth CECE President

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

OUR ASSOCIATE MEMBER LIUGONG DRESSTA

CECE MISSION STATEMENT 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.

CECE TOPIC-O-METER

Environment

Cybersecurity Data management E-privacy

Market access 2021 Economic & industrial policy Standardisation policy Trade policy

2022

preparatory phase legislative phase implementation

Artificial Intelligence

Circular economy CO2 emissions Engine emissions Noise LEZ Waste

Safety

political phase

2022

2021

2022

Electric & electronic t h e ra d a r

2021

2022

Chemicals

Digitalisation

publication in the OJEU

2021

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

FACING THE COVID-19 CRISIS

COVID-19 outbreak came as a surprise to all. Each sector needed to adapt, react and urgent measures were required right away. Already in March 2020 CECE run a flash survey measuring the impact of the COVID-19 crisis on our members. This ad-hoc survey gathered input from a representative group of industry leaders assessing the impact and delivering their perception on the business perspective. The flash survey was continued throughout the month of April. The findings painted a gloomy picture for the European CE industry facing the consequences of the COVID-19 outbreak, pointing that the crisis significantly impacted 60% of the European

construction equipment industry. With 32% of respondents pointing to notable reduction and 30% reporting factory closures, it is evident that the impact on production and manufacturing was severe already in Q1. Only 3% reported to not being affected at all. Thanks to CECE’s collaboration with LECTURA and ERA, another survey, which run from end of May till beginning of July 2020, showcased that 52% of Europe’s machinery owners have seen declines in business. Luckily, the business sentiment and the overall economic performance improved dramatically in the second semester and the overall results for 2020 are less pessimistic than feared.

COVID-19 certainly impacted the business of our members. CECE was trying to limit some unneeded negative consequences of this crisis, namely by requesting the EU to postpone application of the transition deadlines within the EU Stage V Regulation. In a joint letter sent on 25th March 2020 to the European Commission CECE, CEMA, EGMF, EUnited Municipal Equipment & Cleaning, Europgen and FEM called for a moratorium on the application of 2020 and 2021 deadlines listed in Regulation 2016/1628/EU on exhaust emissions from NRMM and 2018/985/EU for agricultural vehicles. To find out more visit www.cece.eu/covid19

FUNDAMENTAL POLITICAL SUCCESS Regulation (EU) 2020/1040 to amend Regulation (EU) 2016/1628 on Stage V emissions from non-road mobile machinery (NRMM) was published on 17th July 2020 on the Official Journal of the European Union. This final step of the legislative process confirms that the 12-months extension of certain transitional provisions is officially EU law and is applicable retroactively from 1st July 2020. This amendment to the Stage V Regulation extends by 12 months the 30th June and 31st December 2020 deadlines for the production and placing on the market of NRMM and tractors fitted with transition engines <56kW and ≥130kW. This fundamental political success obtained by the united NRMM industry allows machinery manufacturers to avoid economic damage and unnecessary waste of raw materials and resources since the transition engines were already built in 2018 and would otherwise have to be scrapped. It should be noted that NRMM and tractors fitted with transition engines between 56kW and 130kW are not affected by this extension and retain the applicable 2021 deadlines.

CECE TAKES A CLOSER LOOK AT INTERNATIONAL TRADE: THE CECE TRADE POLICY COMMISSION Trade is an exclusive competence of the European Union and is a key policy for competitive and high-value European industry. The EU was particularly active over the last years in this policy area, by concluding and applying trade agreements with key commercial partners, notably Canada, Japan, South Korea, Vietnam and Singapore. Because of Brexit, an agreement was reached with the United Kingdom in December 2020 to pave the way for the entry into force of the EU-UK Trade and Cooperation Agreement (TCA). Finally, agreements in principle have been reached in 2020 in negotiations with Mexico, the Mercosur area as well as China with the comprehensive agreement on investment (CAI). Trade negotiations are ongoing with Australia, New Zealand and Indonesia respectively. Global trade is a key area for the European construction equipment industry. Through international trade, construction equipment manufacturers

have access to foreign markets, global supply chains and raw materials. Over the last decade, global demand for construction equipment has been shifting to China, South America and India, with European demand representing today 20% of the global demand. This figure underlines the importance of international trade for our sector and the necessity to negotiate, conclude and ratify pending agreements, in particular with emerging countries. Equally important for the European construction equipment industry is trade with the United States. As both the US and EU are centers of technological development, transatlantic trade is helping to create a strong path to sustained manufacturing competitiveness. However, the resort to tariffs and non-cooperative attitudes has undermined transatlantic trade and economic growth. The current transatlantic tensions include punitive tariffs on certain types of construction machines in the framework

of the WTO Airbus & Boeing disputes. Specifically, since October 2019 the US has been applying additional ad valorem import duties of 25% on certain types of excavators from Germany and the UK. Similarly, since November 2020 the EU has been applying additional ad valorem import duties of 25% on certain types of loaders from the US. These measures are having devastating effects on the sales of construction equipment from both sides across the Atlantic. The adoption of tariffs by the US and EU on their imports of construction machines has revitalised interest in trade by several CECE Members. For this reason, the CECE Executive Committee has approved to reactivate the CECE Trade Policy Commission, which has been inactive over the last years. The CECE Trade Policy Commission consists of members from national associations and several experts in trade from member companies. Besides dealing with the current tariffs, this new group will look at opportunities arising from the dynamic EU trade policy.

#DIGITALCONSTRUCTION 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 revolution going on in the construction sector. 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.

p. XXX) and continuously working in the scope of the CECE Task Force on Digitalisation. Already in 2019 CECE has created this Task Force aiming to ensure representation of CECE’s members interests in the digitalisation policies at the EU level. 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.

The new digitalisation wave will gradually push the companies of the construction sector to rethink their business models. If properly managed, digitalisation can play a major role in increasing company’s competitiveness and it could even change the positioning along the value chain in relation to customer needs. However, translating the potential of digital technologies into an operational strategy is far from an easy task. CECE recognises the importance of the issue and tackles digitalisation by being involved in the DigiPLACE project, an EU-funded project aiming at creating a roadmap for a Digital Platform for Construction in Europe (see more on

OUR TEAM RICCARDO VIAGGI

CAIO LOBO

Technical Policy Manager

ROMA GUZIAK

ANTONIO PAVANELLO

Technical Policy Manager

Communications Manager

SEBASTIAN POPP

MARTINA SCHERBEL

Secretary Statistical Commission

BELÉN BRAVO

Secretary General

Press Officer

Public Affairs Manager

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.

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.

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.

OUR TECHNICAL WORK HIGHLIGHT IN 2020:

Despite the COVID-19 outbreak and its impact on the industry activities for members, the Technical Commission and Project Teams had an intense work agenda during 2020 and were able to cover many topics. The review of the Machinery Directive and harmonised standards continued being the focus of the CECE Technical Commission in 2020. The Technical Commission was also involved on relevant advocacy actions such as the SCIP database development and the extension of the transition period for Stage V and followed the review of the Outdoor Noise and the requirements for road circulation. The Technical Commission was also regularly updated on the technical requirements from Brexit. 2020 consolidated a good coordination among Project Teams in those topics that required bilateral exchanges, such as cybersecurity, Artificial Intelligence and the Radio Equipment Directive shared by PT Machinery and PT Data or remanufacturing that asked PT3R and PT Machinery to work together.

TECHNICAL COMMISSION

Chair: Stefan Nilsson, Volvo CE Number of experts: 75

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

In 2020, the full CECE community supported the extension of the transition period for stage V and was regularly informed on the evolution of the SCIP database and related advocacy. Those main advocacy actions were coordinated with the HLTPAG and the CECE secretariat.

2020 was also a demanding year on topics related to internal market. The Technical Commission provided opinion to the European Commission on the review of the Blue Guide, the roadmap of the New Legislative Framework evaluation and to the art.4 guidance supporting Regulation (EU)2019/1020. In terms of reporting and communication, during the CECE Congress in October 2020 an update on relevant technical files was presented to a broader audience. The Joint Technical Liaison Meeting (JTLM) was not possible to be held physically in 2020, however the international associations for construction machinery successfully exchanged via an online platform that facilitated the regular update on the latest regulatory developments.

PRIORITY FOR 2021:

CECE is engaged with European Commission’s work associated with the revision of the Machinery, Outdoor Noise Directives and road circulation, and will continue to provide concerns to the European Parliament and Council on the e-Privacy file. New initiatives on Artificial Intelligence and Data are expected to require position from the sector. In the environment area 2021 is a crucial year for all the initiatives resulting from the Circular Economy Action Plan to which CECE will prioritise input.

QUOTE FROM THE CHAIR:

“The new ways of working that we have developed due to the pandemic has showed our ability to quickly adapt to new and changing conditions. Even though we have not been able to meet each other in person, we have been able to connect and continue our important activities in an effective way. During 2021 we foresee a lot work to be accomplished with regards to the new regulations and environmental initiatives. Dedicated engagement by the members of Project Teams, Technical Commission and the CECE team will be of essence in order for CECE to successfully manage the challenges ahead.”

HIGHLIGHT IN 2020:

In 2020 the development of the database for information on Substances of Concern In articles as such or in complex objects (Products) – SCIP, under the Waste Framework Directive was the focus of our activities. The group provided input and highlighted main concerns for the sector to the relevant regulatory bodies. The group was also part of the consultation on PFAs restriction for REACH and prioritise actions within the Circular Economy Action Plan.

PRIORITY FOR 2021:

2021 will be a busy year for the PT3R: the group will continue to exchange information on the SCIP database and rise concerns to ECHA and the European Commission. PT3R will also work on the evaluation of the upcoming proposals within the Circular Economy Action Plan and the Chemical Strategy. Together with PT Machinery, PT3R will also continue the discussions regarding the topic of remanufacturing.

QUOTE FROM THE CHAIR:

“Legislation must provide certainty for industry and regulatory bodies must secure coherence among different initiatives, this continue to be the cornerstone of CECE’s advocacy. SCIP database is a bad example of how a lack of an impact assessment in a legislation could drive to excessive unnecessary burdens for the entire industry. The Circular Economy Action Plan will require an intensive coordination with the rest of CECE PTs in 2021 and experts are engaged to provide timely feedback.”

PT 3R

Chair: Darius Soßdorf, VDMA 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.

ADVOCACY ACTION

CECE, in coordination with other industrial associations, strongly highlighted the main concerns for the sector to the European Commission, ECHA and Member States regarding the new SCIP database.

HIGHLIGHT IN 2020:

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 type-approval 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.

In 2020 the urgent request for extension for the transition period for Stage V in the range of <56kw and ≥ 130kw was the priority for PT Engine Emissions. A new Regulation (EU) 2020/1040 was published in July 2020 providing a 12-month extension of such period. The group was also regularly updated on the technical requirements defined by the UK government for Brexit.

PRIORITY FOR 2021:

The group will focus on regular reporting on the emerging Low Emissions and Zero Emissions Zones in Europe and will continue to follow the Brexit file. We will closely monitor the strategic activity of the European Commission in areas such as alternative fuels, energy system Integration and so on in order to alert our members to issues of interest. Globally we see much activity and with support of our sister associations we will follow developments in our sector, for example the activity of EPA and CARB under the new US administration and the China NRIV legislation which includes specific requirements for machine manufacturers.

QUOTE FROM THE CHAIR:

“Although Brexit is behind us, questions on the impact for future emissions requirements still remain and therefore we will closely follow the development of the new type approval arrangements for Great Britain. For Europe, we look forward to the adoption of revised delegated acts on in-service monitoring for Stage V engines and the publication of the European Commission’s report into retrofitting of NRMM engines.“

ADVOCACY ACTION

CECE together with our industry non-road mobile machinery partners CEMA, Euromot, EGMF, FEM, EUnited and Europgen carried out a successful advocacy vis-à-vis of the European Commission, Council and Parliament to secure that the impact of COVID-19 does not affect the foreseen production and placing of the machinery on the market.

HIGHLIGHT IN 2020:

The team focused on matters related to data and which may impact the construction equipment sector in the Digital Single Market. In 2020 the PT Data continued to follow the Council discussion on e-Privacy file during the Croatian and German Presidencies. It also monitored the implementation of the Cybersecurity Act with the setting of the working program and the developments of schemes (e.g. cloud), Artificial Intelligence.

PRIORITY FOR 2021:

The team will focus on Cybersecurity and Artificial Intelligence.

QUOTE FROM THE CHAIR:

“The collection of data is key to achieve the creation of a competitive digital single market. In order to bring trust in this new digital environment it is essential to partner with the business and create rules that set principles and don’t contradict each other.”

ADVOCACY ACTION

The PT European Data Policy joined forces with the PT Machinery to advocate against cybersecurity requirements introduced in different legislations which would lead to legal inconsistencies and market fragmentation. The groups supported Orgalim’s proposal to have a “product-related horizontal legal act on cybersecurity” which should be established in accordance with the principles of the New Legislative Framework (NLF).

PT EUROPEAN DATA POLICY Chair: Charlotte Le Bozec, Caterpillar Number of experts: 45

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.

HIGHLIGHT IN 2020:

The European Commission was not very active on the Outdoor Noise legislation file during 2020. In 2019 CECE published an extensive Position Paper on noise limits for the construction equipment industry and presented it to the European Commission.

PRIORITY FOR 2021:

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.

At the end of 2020, the European Commission published the independent consultant’s Evaluation Report and Staff Working Document on the Outdoor Noise Directive. PT Noise will react to the evaluation and provide a follow up Position Paper with the main priorities for the construction equipment industries. The group will also closely monitor the activities of the Noise Expert Group meetings and exchange with the European Commission and Member States on the possible upcoming revision of the Outdoor Noise Directive.

QUOTE FROM THE CHAIR:

“Quiet machines provide environmental and health protection, but unfortunately certain work processes are noisy due to the laws of physics and a quieter machine has no influence on this. Whenever possible construction machine manufacturers are coming up with quieter machinesolutions for the market. However, recent investigations show that the market does not really accept quieter machines. The legislators’ idea that quieter machines would be asked for by the user will only end up in merely poor sales figures and much higher costs for the machine manufacturers, with no discernible advantages of the actors involved.”

HIGHLIGHT IN 2020:

In 2020 the Industry Task Force composed of CECE, EGMF, CEMA, EFM and EUnited submitted a draft document specifying the proposed technical requirements for towed equipment on public roads and addressed several questions from either the European Commission or Member States with CECE playing a key role. The European Commission reiterated the political interest in the file and continued the preparatory work for a future proposal on the harmonisation of road circulation requirements. This included the opening of a public consultation analysing the possible policy options for the future legislation.

PRIORITY FOR 2021:

The priority for 2021 will be to keep working with the Industry Task Force and follow up on the discussions with the European Commission on the file and advocate for its prompt publication. We expect the European Commission to move forward and publish the results of its own public consultation and impact assessment.

PT ROAD CIRCULATION

Chair: Alessandro Rossi, Caterpillar Number of experts: 47

QUOTE FROM THE CHAIR:

“We - PT Roading - need to remain engaged to continue advocating with European Commission and Member States to have a harmonised European approach on road circulation requirements for our members, for the benefit of the EU users that will profit from a high level of safety set for their products when used on public roads and for the industry that may benefit with some cost savings. The key objective of the advocating action is to provide Member States with clear explanations on the current draft proposal, its background and high level of safety granted whilst ensuring that the key concept and approach contained in the draft will not be changed too much upon publication.”

ADVOCACY ACTION

As in 2019 and 2020, CECE put the road circulation for construction mobile machinery on the top of priorities and particularly in 2021, spreading the message among regulators on the urgent need for harmonisation. In addition, CECE has been working closely with the Industry Task Force to cooperate with the European Commission on the preparatory work on the file, including exchanges on the details of the industry proposal.

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.

HIGHLIGHT IN 2020:

The group developed an extensive Position Paper and a follow-up letter reacting to the proposals from Member States on the Machinery Directive revision. We have been closely following the proposals put forward by the Member States’ authorities and other stakeholders during the European Commission’s Expert Group. The aim is to make sure that the opinion of our sector is taken into consideration at each step of the revision process. The group has been engaged on electrical & electronic legislation. 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). In addition, PT Machinery has also been participating in the European Commission’s evaluation of the Electromagnetic Compatibility Directive (EMCD).

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.

PRIORITY FOR 2021:

Actively monitor and engage with the European Commission to ensure that the future proposal for the Machinery Directive reflects the realities of construction equipment manufacturers. Once the proposal is published in 2021, the group will be working together with other associations to closely follow the work and engage with the European Parliament and the Council of the European Union.

QUOTE FROM THE CHAIR:

“During this year we will see intensive activity from all stakeholders to conclude the proposal for a new Machinery Directive. The Machinery PT will be closely following the progress and working with our partners with the aim of ensuring that where necessary new topics are introduced in a way that is proportionate and respecting of the core principles of the Machinery Directive.”

ADVOCACY ACTION

In 2020, CECE provided constant input to the discussions in the European Commission’s Machinery Working Group. The group has been exchanging opinions with different Member States and the European Commission on many occasions. Including meetings with the European Commission’s policy desk officer for the Machinery Directive and letters to the European Commission addressing specific subjects such as new technologies.

PT VISIBILITY

HIGHLIGHT IN 2020:

Number of experts: 26

During 2020 we have not held a specific PT meeting but instead followed this topic through the PT Machinery meetings. The reason for this approach is due to the fact that most work on this file was completed during 2017 and the CECE role during 2018, 2019 and 2020 has been only to follow the progress of the completion and publication of the related CEN standards. A warning remains in the Official Journal of the European Union (OJEU) regarding the visibility of Hydraulic Excavators. This will be addressed once the full revision of the EN474 series is published as new requirements for these machines have been drafted in EN474-5.

PRIORITY FOR 2021:

As no significant new developments are expected in this area, we will continue to follow the topic within PT Machinery.

OUR PRODUCT GROUPS The CECE work is organised 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 2020:

Active participation in the drafting of the technical document related to road circulation requirements for towed equipment and promotion of this document within the CECE Road Circulation Project Team and the European Industrial Task Force in charge of the road circulation file.

PRIORITY FOR 2021:

Define a new roadmap combining economic and technical activities for the road equipment product group.

PG ROAD EQUIPMENT

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

QUOTE FROM THE CHAIR:

(Stephane Guillon): “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 2020: Economics and statistics.

PRIORITY FOR 2021: Economics and statistics.

QUOTE FROM THE CHAIR:

“Despite the Corona crisis, 2020 ended better than forecasted, especially in the major markets. Perspectives are nevertheless uncertain for the future.”

PG TOWER CRANES

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

HIGHLIGHT IN 2020: Economics and statistics.

PRIORITY FOR 2021: Activation of new product lines.

QUOTE FROM THE CHAIR:

“Although the pandemic crisis generated large disruptions, sales maintained at an acceptable level, especially in Europe.”

PG CONCRETE EQUIPMENT

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

HIGHLIGHT IN 2020:

As was the case for all association work, our activities were severely disrupted by the pandemic. In fact, our hydraulic attachment tools product group meeting at Conexpo in March was CECE’s last in-person meeting at all for a very long time.

PRIORITY FOR 2021:

PG HYDRAULIC ATTACHMENT TOOLS

We continue to work on further improving CECE’s statistics programmes for hydraulic attachment tools, and this year want to address issues like OEM business and import hubs in statistics reporting.

Chair: Torsten Ahr, Epiroc Secretary: Sebastian Popp, VDMA/CECE Number of experts: 50

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 2021

CECE Business Climate Index 100 80 60 40 20 0 -20 -40 -60 -80 -100 Feb-16

Feb-17

Feb-18

Feb-19

Business Index 22

Feb-20

Feb-21

CECE STATISTICAL COMMISSION

Chair: Adelheid Bousard, Volvo Secretary: Sebastian Popp, VDMA/CECE Number of experts: 30

HIGHLIGHT IN 2020:

Successful transformation of CECE statistics work to virtual means of communication.

PRIORITY FOR 2021:

Turn web meetings into an advantage by reaching an even broader industry involvement and pushing forward initiatives on individual projects (e.g., a new classification for dozers statistics, exploring new statistics for crawler carriers, moving ahead with the idea of a statistics programme family for trenchless technology).

QUOTE FROM THE CHAIR:

“It was the first year of CECE’s secretariat role in the Intercontinental Statistics Committee (ISC) and the timing couldn’t have been more challenging to hold meetings. Still, we managed to do virtual statistics meetings that turned out to be productive, some of them even bridging 14 time zones.”

IT IS TIME FOR #BUILDINGTRUST AND ENABLING INNOVATION

Acknowledging the unprecedented situation that Covid-19 has imposed on Europe, CECE and its Swedish member association SACE decided to propose an alternative event opportunity - in the world of digitalisation, we presented a digital Congress.

During the event a newly produced CECE documentary on sustainable construction was premiered. Moreover, the event looked at the current regulatory challenges and presented the economic update on the construction equipment markets.

“It is time to see opportunities and focus on recovery. It is time to look forward and see where innovation sets the path for growth. It is time to take leadership in sustainable construction technology and in digitalisation to guarantee full power in achieving Europe’s Green Deal goals. We must keep building trust and enable innovation.” With these words CECE President Niklas Nillroth opened the CECE Congress 2020.

A panel of high-level relevant speakers, professionally moderated by Malcolm Larri from the TV studio in Stockholm, painted a picture of a forward-looking industry working together to deliver for society. CECE Congress highlighted that successful digital transformation depends on a holistic view and a proper economic structure based on trust in the role of public authorities and in the capacity of companies to innovate.

The 2020 edition of the CECE Congress was short. No personal meetings, no get-together, no small talk, or leisure. Nevertheless, an amazing number of 650 participants from around the world joined the livestreamed conference on 8th October to profit from experts’ views on the post-COVID economic recovery and the opportunities offered by sustainability and digitalisation.

CECE President underlined that the EU industry is committed to stay in the technology lead. Understanding the needs of customers and suppliers is key. Working closely with policy makers and strengthening collaboration with academia leads to building trust and further enables innovation serving the EU society.

During an opening panel debate, CECE Secretary General Riccardo Viaggi reminded participants about the historic importance of the European Recovery Plan in making available 750 billion Euros of fresh finance for economies to kickstart investment and growth: “We need the national Recovery Plans to prioritise construction and infrastructure projects, which create jobs and prosperity at local level” concluded Riccardo Viaggi.

the energy used in the EU is for heating and cooling, 40 % of emissions come from existing buildings and 30 % of the total waste is construction waste. In this setting, the EU Renovation Wave to improve the energy efficiency of buildings in Europe is the cornerstone of construction’s recovery. “I invite you to ride the wave; the Renovation Wave is your sector’s industrial strategy”, concluded Kerstin Jorna.

Also speaking at the CECE Congress, Kerstin Jorna, Director General of the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs at the European Commission pointed that construction plays a decisive role in the European economy. 30 % of all

The impact of COVID-19 on the construction equipment sector is immense. According to Chris Sleight, Managing Director of Off-Highway Research, the revised forecast for global equipment sales (units) in 2020 is -16 %. This was around -5% before the

pandemic. The economic environment will be weak and the performances will depend on which recovery actions will be put in place by national and regional authorities to relaunch spending and economic activities. The CECE Congress 2020 was sponsored by Danfoss, Hammerglass, CheckMobile and Configit. KHL Construction Europe was the official media partner of the event.

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A weekly newsletter introduced in September 2017. A regular update on topics and challenges related to EU legislation and the workings of CECE in general. It includes three regular sections on EU News, CECE News and Exhibition Partner News.

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CECE QUARTERLY ECONOMIC BULLETIN

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

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CECE TECHNICAL BULLETIN AN NUAL ECO NO

MI C

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

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

No.4 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.

MINING INDUSTR

CONSTRUCTION EQUIPM ENT SECTOR IN EUROPE

CECE ANNUAL ECONOMIC REPORT

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.

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

MOST COMPANIES ARE SME

CECE REPORT OF ACTIVITIES

March 2018

100 MN € - 1 BN €

>1 BN €

Source : McKinsey 2016

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 VIDEOS CECE is making a conscious effort on gaining more visibility and growing its YouTube channel where you can view all our videos. With over 60 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 375K views in 2020 on its YouTube channel and on the social media accounts. Visit our YouTube channel to stay in touch!

CECE FORGED THE INDUSTRY AND LONGTERM INVESTMENT INTERGROUP During all of 2020 CECE has been committed to kickstarting the work of the European Parliament Intergroup on Sustainable, Long-term investments & Competitive European Industries. This Intergroup was formally established in December 2019 with the votes of the three main political groups in the European Parliament. The Intergroup was established as a forum of discussion between MEPs and civil society to discuss two interlinked areas: on the one hand, the growing debate on sustainable finance and a greener EU budget, on the other, the conditions to improve competitiveness of the European industry. The first months of 2020 saw the shaping up of the Intergroup’s governance. A Bureau composed of three co-chairs, Ms Carvalho from the EPP, Ms Bonafé from the S&D and Mr Riquet from Renew Europe leads the Intergroup composed of approximately 100 MEPs sitting in various committees. More than 50 industrial and financial organisations, as well as NGOs are partners of the Intergroup and sponsor regularly the events. 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 role of CECE is to coordinate the inputs from industrial stakeholders into the discussion around the EU industrial competitiveness. The Intergroup was soon provided with the necessary communication channels. In particular, a user-friendly website was developed under the supervision of the communication team of Orgalim, with CECE providing the content. The second wave of the COVID-19 pandemics delayed the kick-off of the Intergroup and its launch event took place as virtual conference on 26th October 2020, with the keynote speech of Commission Executive Vice-President Frans Timmermans. Besides launching the Intergroup’s activities, the event sparked the debate about the EU recovery fund as a key instrument to enable recovery and build resilience. During the event, all speakers made it clear that in this transformative age Europe must invest on longterm objectives of sustainability and competitiveness with short term results to recover from the crisis. If Europe does not act now, the next generations will be left suffering all the economic and environmental consequences.

CECE STRENGTHENS VALUE CHAIN COLLABORATIONS THE CONSTRUCTION 2050 ALLIANCE – AN AMBITIOUS POLITICAL INITIATIVE FOR CONSTRUCTION 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 December 2020 the Construction 2050 Alliance held its inaugural virtual meeting, 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. brought together over 200 participants.

CECE REINFORCES COLLABORATION WITH ERA Similarly to year before, throughout 2020 CECE and European Rental Association, ERA met regularly to exchange information and share ideas on how to pursue common interests and mutual objectives for the benefit of construction equipment. The main common topics are digitalisation and telematics, with a focus on data sharing and management. CECE as a partner of the European Project DigiPLACE (see more details on the right) has involved ERA in project’s Advisory Board strengthening organisations’ cooperation. CECE has also continued featuring ERA’s ‘Rental Tracker’ in its Quarterly Economic Bulletin. The ‘Rental Tracker’ is a survey of business trends and sentiment in Europe’s equipment rental industry. The survey is jointly organised by ERA and International Rental News magazine. By tackling common issues, ERA and CECE reached consensus on a common path made of information sharing, possible joint advocacy actions in Brussels and invitations at events. Other joint team meetings are foreseen to take place in 2021.

In modern economy, digitalisation is a major driver of productivity growth across industries and services. To remain competitive in an increasingly globalised market, the EU economy must transform itself digitally. The construction sector is characterised by a high presence of SMEs, low capitalisation, a low rate of higher educated employees, low investment in innovation, and a long supply chain. Moreover, in the EU market, different languages, taxation, and regulatory frameworks are obstacles to synergies. DigiPLACE will address those issues and exploit the EU added value. DigiPLACE is an EU-funded project aiming at creating a roadmap for a Digital Platform for Construction in Europe. The consortium, composed of an unprecedented collaboration between EU construction industry representatives, a strong academic partnership and the support of 3 countries’ public authorities will work until May 2021. From September 2019, the project partners are collaborating to create the framework for the digital platform. The 19 partners from 11 countries led by Politecnico di Milano will pave the way for future projects in the field of digital construction. This project is the first ever proposal targeting the digital transformation of the construction industry to receive EU funding from Directorate General for Communications Networks, Content and Technology (DG CONNECT).

#DigiPLACE digiplaceproject.eu

#EUConstruction2050

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.

DigiPLACE – TOWARDS A EUROPEAN DIGITAL PLATFORM FOR CONSTRUCTION

CECE strongly believes in a close collaboration with the representatives from the full construction value chain. The established collaboration with ERA ensures the holistic approach towards tackling skills shortage and challenges rising from digital construction.

CECE is in charge of the project’s communication and dissemination activities. We created project’s website and are responsible for managing the social media account, planning and organising events and disseminating project’s results. Save the date for DigiPLACE closing conference which will take place on 27 May 2021.

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 B razil , SOBRATEMA Brazilian association for contruction and mining technology C hina , CCMA China construction machinery association A ustralia, CMEIG Construction & mining equipment industry group

#CECEatCONEXPO

CONEXPO-CON/AGG 2020, North America’s largest trade show for construction took place in Las Vegas from 10th to 13th March. CECE delegation went to Las Vegas to witness the success of the show first-hand. CONEXPO-CON/AGG, held every three years in Las Vegas, this massive event featured the latest equipment advances and newest technology applications in every aspect of construction.

CECE as CONEXPO-CON/AGG’s Exhibition Partner, was glad to be part of this important industry event.

HIGHLIGHTS: • U.S. buyer attendance increased 8% from the 2017 show, and total buyer attendance improved by almost 5% • Overall contractor and producer attendance grew by 14% • 6-in-7 attendees serve in a decisionmaking role • Total registered attendance reached over 130,000 for the week • Attendees purchased a record-breaking 75,622 tickets for education sessions at the show, a 46% increase from the 2017 show

CECE INTERNATIONAL EXHIBITION PARTNERSHIP PROGRAMME EXHIBITIONS AND TRADE FAIRS AT THE TIME OF COVID-19 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 are one of the areas of business most affected by the Covid-19 pandemic. Almost all of the shows planned for 2020 have been postponed or cancelled, due to both national restrictions and travel limitations. For decades, international trade fairs have been a key activity and focal point for many industries. Typically, exhibiting and

attending tradeshows is one of the pillars of modern sales and marketing activity for many industries. Trade fairs have played a key role in the development of modern market economics, involving face-to-face networking across an industry between all the stakeholders, from suppliers and customers to investors and experts, and many more. We do not want to imagine a different way of conducting business. In the short term, technology can help support activity in these difficult times. However, a switch to a “remote market” on a longer term should be considered as a step backwards for international business – not a step forward. CECE is optimistically looking forward to times where trade fairs and exhibitions will be back to their full potential.

Exhibition

Organiser

CECE Partnership

bauma

Messe München

Gold Partner

CONEXPO-CON/AGG

AEM

Gold Partner

Intermat

Comexposium

Gold Partner

SaMoTer

VeronaFiere

Bronze Partner

M&T Expo part of bauma NETWORK

Messe München

Bronze Partner

bauma CTT RUSSIA

Messe München

Exhibition Partner

bauma CHINA

Messe München

Exhibition Partner

bauma CONEXPO AFRICA

AEM, Messe München

Exhibition Partner

bauma CONEXPO INDIA

AEM, Messe München

Exhibition Partner

Published in March 2021