Executives from CECE, which represents 1,200 European construction equipment manufacturers through national trade associations, made the comments at the launch of during the Bauma exhibition in Munich, Germany.

The report found that a flat construction equipment market in Europe in 2025 would be a positive result, after a sharp decline in the size of the market of 19% in 2024.

The report also found that 28% of all European OEMs鈥� exports are destined for the US market.

CECE鈥檚 economic affairs manager Sebastian Popp said the situation was 鈥渜uite alarming鈥�. 鈥淚t clearly tells us that the stakes are high. I am not saying that if the tariffs are put in place, all these exports will go away. That will not be the case. But it is pretty clear for us as an industry that we need to be able to compensate in other markets.鈥�

CECE secretary general Riccardo Viaggi added, 鈥淭he export market is not going to disappear because of tariffs. It may be reduced, and it will be more costly for clients to buy. At some point, we need to find alternative routes. In addition to thinking about our own competitive advantage internally [within Europe], we should be thinking about developing new markets.鈥�

Work on that front is already underway, Viaggi explained. He suggested that agreements like the EU-Mercosur agreement, reached between the European Union and Argentina, Brazil, Paraguay and Uruguay, could lead to future opportunities in Latin America, particularly for mining equipment.

He also recommended continuing to ramp up efforts to open up the Indian market, in spite of the fact that India has its own tariffs aimed at protecting domestic manufacturers.

鈥淚t鈥檚 about opening up new markets that will not replace the US market tomorrow but will give us a bit of leeway and will diversify our trade flows,鈥� he said.

鈥淐ECE is hosting the Global Alliance for Construction Equipment and this is the most relevant platform for us to say that global trade is better for everybody. One of the things we discussed at the Bauma Forum is new trade deals with other areas of the world,鈥� he added.

European equipment sales flat in 2025

CECE鈥檚 economic report found that the European construction equipment market experienced a substantial decline of 19% in 2024, driven by high construction costs, persistent inflation and rising interest rates, as well as fears of recession and a deterioration in the geopolitical situation.

CECE said the fall in 2024 was larger than the covid dip of 2020 and represented the biggest contraction of the market since the global financial crisis of 2009, albeit the volume of sales after the covid pandemic hit peak levels.

Tower cranes were the weakest performing segment, with sales of new machines down 45%, although this was against a strong comparative in 2023, when Turkey purchased many new cranes to help in relief effort after an earthquake that rocked the country.

Earthmoving equipment sales in 2024 fell by 22%, concrete equipment by 20%, and road machinery by 16%, according to the report.

Following such a sharp decline, a flat market in 2025 would be viewed as a positive performance, CECE said.

Popp said, 鈥淚t was primarily the large volume markets in northern and western Europe 鈥� the ones that have seen extremely high sales levels over the last couple of years 鈥� that were strongly affected.鈥�

Those included Germany, France, the UK, and Nordic markets.

Other regions like southern Europe offered a more positive picture, particularly in Italy and Spain. 鈥淚 would say that in southern Europe, the sector peaked a bit later, and that is why declines have also set in later,鈥� Popp said.

He also pointed out that even after seeing their share of the market shrink in recent years, Germany, France and the UK still make up 47% of total sales in Europe, which means that other regions seeing healthier sales levels are unable to compensate for the overall decline.

While stimulus following the covid pandemic, which helped to drive machine sales, has largely been used up, Popp noted that a 鈧�500 billion infrastructure fund planned in Germany should help provide impetus for more sales there. However, he pointed out that the plan for the fund is still light on detail.

Meanwhile, a survey of CECE members in March, as part of its monthly business confidence survey, found that there is a balance of positive and negative replies from companies when asked about their order intake.

Popp said this indicated that the decline in sales has bottomed out and OEMs are waiting for a return to growth.

CECE president Jose Antonio Nieto said, 鈥淲e think this push infrastructure projects in Europe among some countries, new funds being released, and low interest rates will motivate people to invest and to renew their machinery.鈥�