Peter Hingott, Bauer CEO (Image: Bauer)

And dichotomy may be the word in construction this year, as the entire industry is due to navigate what鈥檚 suddenly become a turbulent global landscape for the biggest industries.

Construction Briefing had the opportunity to sit down with Peter Hingott, CEO of Germany-based Bauer Group, a construction and machinery/systems OEM, for an exclusive interview from Bauer City 鈥� the company鈥檚 sprawling booth at Bauma.

There, Hingott unravelled the challenges posed by global (and strained) trade dynamics, but also looked ahead at the company鈥檚 strategic focus across various regions and highlighted advancements in equipment electrification and digitalisation.

Embracing the European market, shifting global priorities

While Bauma is a global trade fair, most expo years 鈥� understandably 鈥� have a deeper emphasis on the European market. So, it was not surprising that Hingott underscored the importance of European business, particularly in Bauer鈥檚 home region: the DACH countries of Germany, Austria, and Switzerland.

鈥淭his is still developing quite well,鈥� he said. 鈥淚t went well in 2024, and we had good sales at the beginning of 2025. And with this huge investment package the government of Germany released recently, we see that there can be improvement as well in Germany.鈥�

Hingott was referring to Germany鈥檚 newly approved 鈧�500 billion infrastructure fund; a long-term investment aimed at modernising transport, energy, and digital systems while supporting climate goals and economic growth. It was approved by the federal government in March of this year.

Germany鈥檚 鈧�500bn infrastructure fund moves ahead after political agreement A proposed 鈧�500 billion fund to improve infrastructure in Germany has won approval in the Bundestag after the Greens joined the SPD and CDU in backing it

That momentum isn鈥檛 universal across the region, though. Hingott pointed to a downturn in the UK, which had previously been 鈥渂ooming in construction the last years.鈥� Now, he said, 鈥淲e have just the HS2 railway project left, and there are not so many other big projects upcoming in the UK, so we see a little drop.鈥�

Elsewhere in Europe, the picture is steady, if more modest.

鈥淎ll the other markets in Europe, which for us is mainly Eastern Europe and Northern Europe, [are] doing quite well, but on a lower level.鈥�

But what some readers could find surprising is where Bauer is choosing not to prioritise its time: China and the US.

Discussing Bauer鈥檚 global footprint, Hingott revealed a strategic refocus away from the Chinese market, citing its diminished viability for the company.

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Hingott said the company decided not to participate in the last round of Bauma China.

The Bauer e BG 33 H all-electric drilling rig on-display at bauma 2025. (Image: Mitchell Keller)

鈥淭his market is not a market anymore for us,鈥� he said in earnest. 鈥淐hinese manufacturers are still pushing into the Asian markets with quite cheap equipment... We have no real chance to compete anymore, to be honest.鈥�

Conversely, he expressed enthusiasm for opportunities in Australia and the Middle East, regions experiencing significant infrastructure growth.

India also emerged as a focal point, with Bauer鈥檚 construction arm actively participating in numerous infrastructure projects. 鈥淐onstruction is doing very well,鈥� he said. 鈥淭here are a huge number of infrastructure projects ongoing in India where we are participating and benefiting.鈥�

But the Indian market presents challenges for new equipment sales, Hingott added, due to price sensitivity and competition from Chinese manufacturers. But Bauer has found success through after-sales services, tool sales and equipment rentals.

鈥淲e are doing very well [going back] many years, but it鈥檚 a different market for us... it鈥檚 not a market where we can sell new equipment,鈥� Hingott said.

Navigating North American trade challenges

The conversation turned to North America, where recent tariff implementations have introduced uncertainty鈥攑articularly for international manufacturers. Hingott said in his discussions with US customers, he sensed optimism that the situation might resolve quickly.

鈥淭hey are more relaxed than we are,鈥� he said. 鈥淭hey think this tariff stuff will be sorted out in weeks.

鈥淚鈥檓 not as optimistic as they are.鈥�

He warned that if the tariffs linger, Bauer鈥檚 North American business could feel the impact in the coming year. 鈥淚f it stays longer, it will hit us definitely in 2025,鈥� he said. 鈥淭he US market was very nice the last years, and we also expected in 2025 to have a really good development in the US.鈥�

That expectation has been clouded by uncertainty over import duties鈥攅specially given the high capital investment required for Bauer equipment. 鈥淲e are talking between 鈧�2 and 鈧�5 million each,鈥� he said. 鈥淥f course, 20% of tariff or custom duty is a lot for them... [and] most likely they will slow down ordering equipment during the next months.鈥�

Off-Highway Research managing director Chris Sleight, in a recent interview with Construction Briefing, noted preliminary figures suggest it was a tough year for construction equipment sales last year globally, with falls in many countries ranging from 10-20%.

Electrification, hybrid machines, and digitalisation at Bauer

Bauer and RTG鈥檚 eRG 19 T hybrid pile driver. (Image: Bauer)

No matter the region, Hingott said his company and brands are committed to electrification and digitalisation, which was on full display at Bauma.

But one of the more interesting machines was neither all-electric nor solely diesel powered: it is, instead, a little bit of both.

The eRG 21 T hybrid telescopic pile driver from Bauer brand RTG Rammtechnik is a hybrid. It combines a 430kW diesel engine with an 88kW electric motor, achieving up to a 68% reduction in fuel consumption and CO鈧� emissions, according to Bauer.

Hybrid pile driver deployed on train station project A Bauer hybrid pile driver is in use for the foundation work on a German train station project

Hingott elaborated on the industry鈥檚 trajectory, as it relates to hybrid machines. 鈥淢ost of the clients are still looking for fuel, diesel fuel engines or hybrid. No one is really looking for pure electrically driven equipment because the challenges are still there to get the power to the construction site.鈥�

It鈥檚 not just machines, generally, receiving alternate power solutions, either.

One example of Bauer鈥檚 progress in electrification is the company鈥檚 fully-electric triple-Cutter Soil Mixing (CSM) method and system, currently in prototype phase. This combination of strategy and machinery is a large-scale foundation-drilling-rig configuration designed to carry out the CSM method 鈥� a technique that mixes in-situ soil with a cementitious slurry to create deep, stable underground walls.

The 鈥榯riple鈥� version features three cutter wheels working simultaneously, allowing it to produce wider soil-cement panels in a single pass while also reducing emissions and noise due to its fully electric drive.

Hingott added digitalisation stands as a cornerstone of Bauer鈥檚 strategy, too. He said integrating equipment data with broader construction site information can not only improve operational decision-making, but also to address labour shortages and reduce reliance on manual oversight.

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While maintaining that emissions reductions remain a high priority, he said Bauer and the industry also 鈥渉ave to focus [as much] on digitalisation and optimisation鈥� in the next five years. He argued the efficiencies gained through data integration may have a more immediate impact on both performance and sustainability.

And on that digital frontier, Bauer continues to develop software solutions combing equipment telemetry with construction site logistics.

鈥淲e鈥檙e in a unique position because we manufacture equipment and also operate a construction company. That allows us to combine both perspectives and offer software solutions that pure equipment manufacturers can鈥檛,鈥� he said.

Short-term future may be closer to home for Bauer

Addressing competition from Chinese manufacturers and sky-high tariffs in the US, Hingott advocated for a focus on Bauer鈥檚 strengths, which includes recommitting to their historic sales footprint.

鈥淲e have to focus on our own,鈥� he said, noting there are plenty of opportunities in the DACH region and Europe as a whole.

Offering some guidance for the local industry as a whole, Hingott said the German and European construction industries will simply need to find internal solutions if the burgeoning global trade situation worsens.

鈥淲e are strong; we have everything we need to sustain and to be successful,鈥� Hingott said.