25th Jan 2021
Clearly Covid has had a huge impact across the economy, but it has to be said that the construction industry, has probably faired better than most. Having said that there has been a clear impact on sales of new equipment both to the hire sector and to end users. Large capital investments are the first things to be paused when the future outlook is so uncertain and this is seen in the numbers.
Construction spending was down 4% year on year in November acorss the board, and the year remains 25% below the previous year thanks to steep falls in the first lockdown.
In areas where machines are typically run for longer before being replaced, telehandlers, and larger excavators for example the drop in new equipment sales was steep. The declines were lower for mini diggers which need replacing early and also are more involved in maintaince and utility work which has probably fared better than house building.
There is of course a risk that demand has simply been pent up, especially with improving house prices so there will suddenly be a rush to purchase new equipment espeically if lockdowns look to be ending. Coupled with some Brexit delays this could lead to long lead times, we are already heading of long delays in certain areas.
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