Low volume, high complexity

Mc Kinsey’s latest report characterises the European construction equipment industry as a “low-volume – high complexity” sector, producing over 100 machine types.

With over 350 corporate machinery groups in Europe, operating under more than 500 brands, the sector collectively turns over 35 to 40 billion euro in their European businesses.

The sector’s strength and diversity is shown by the fact that almost 75% of OEMs turn over less than 100 million euro a year, however competing successfully with their multi- billion peers in both local and niche markets. A true export powerhouse, 2,5 to 3 times more construction machines are exported than imported, whereas on average exports in the machinery sector only outweighs imports by 10 to 15%. Over 85% of all construction equipment production capacity is located in Europe, with over half of OEMs producing only in Europe. In all, the sector employs over 150 000 people directly, and two to three times more indirectly.

Review overview