ConstructionWorX DIGITAL
HARD DATA
UK Construction equipment sales slowing down in 2023 The CEA’s Market Analyst, Paul Lyons, provides his insight into what is happening in and around the construction equipment market... After showing a strong start to the year, retail sales of construction and earthmoving equipment have begun to slow down in recent months. In the first seven months of the year to July, sales are 3% ahead of 2022 levels during the same period and have reached 22,500 units. After growing by over 11% in Q1, sales have fallen behind 2022 levels in both May and July, and the anticipated slowdown in sales this year has begun. As reported earlier in the year, equipment sales in the early months were still benefitting from the “catch up” following supply chain constraints in 2022 which extended lead times for delivery of machines. Sales in recent months are now more exposed to the impact of lower levels of construction activity which are reported on below. However, it should be remembered that sales are still at “record” high levels and remain ahead of 2022, which was the best year for equipment sales since the financial crash in 2008. All equipment sales statistics are sourced from the construction equipment data exchange managed by Systematics International. The pattern of sales for the major equipment types has shown a mix of performances in the first seven months of the year. Compared with the first seven months of 2022, the strongest sales have been seen by some of the lower volume products such as Road rollers and Wheeled loaders. In contrast, weaker sales have been experienced by some of the higher volume products. This includes Mini/Midi excavators (up to 10 tonnes), where sales are only 3.5% ahead of 2022 levels, and Crawler excavators where sales have been 3% below 2022 levels in the first seven months of the year. In their most recent forecast published in April, Off-Highway Research
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are anticipating that sales of construction equipment will show a modest fall of 4% this year in the UK as the impact of high inflation and reduced activity in the construction market is experienced. It is anticipated that this will be followed by a further 2% decline in sales in 2024. So overall, a modest downturn is anticipated for equipment sales following a strong post-Covid recovery. Construction equipment sales in the Republic of Ireland are also documented in the statistics exchange managed by Systematics International. Sales this year have been on a weakening trend and recorded a decline of 23% in the most recent update in July, compared
