LONDON: UK exports and imports of construction and earthmoving equipment saw fluctuations in demand during 2016 according to the Construction Equipment Association (CEA). The latest CEA report shows that UK exports of construction and earthmoving equipment showed a modest increase in the fourth quarter of 2016. However the sales ended the year at 1.8% lower than 2015 in weight terms (tonnage of machines), and 7.4% lower in value terms. The USA remained the top destination for exports, but saw reductions of over 20% in 2016 in weight and £ value terms. In contrast, exports to EU territories showed significant increases in 2016, and accounted for 48% of total weight of machines exported compared with 40% in 2015. Imports of equipment showed reductions in the fourth quarter, and resulted in 2016 showing an 8.9% reduction on 2015 in weight terms, and a 3.3% reduction in value. This returned imports to below 2014 levels after two years of growth.
The UK remains a net exporter of construction and earthmoving equipment, measured in both weight and value terms. In 2016, the trade surplus increased by 5.7% on 2015 in weight terms, but declined by 11.7% in value. UK exports of construction and earthmoving equipment showed a modest increase in the fourth quarter of 2016, ending a year of relative stability. Measured in terms of machine weight (tonnes), exports showed a 5.5% increase in Oct/Dec, and returned to similar levels as Apr/Jun. However, compared with Oct/Dec 2015, exports showed a 9.5% increase. For 2016 overall, exports were 530,000tonnes, representing a modest 1.8% reduction on 2015 levels. This continues a declining trend year-on-year since 2013. The fall in the value of the UK currency in the middle of 2016 following the Brexit referendum, has not had any significant impact on stimulating export volumes.
UK imports of construction and earthmoving equipment showed an 8.9% reduction in 2016, at a level of 255,000tonnes. This returned imports to levels below 2014, after two years of growth. The quarterly “pattern” of imports in 2016 was similar to 2015, with a peak in Apr/Jun, and a decline to a “low” in Oct/Dec. The figures for the fourth quarter of 2016 were the same as for the fourth quarter in 2015. The UK remains a net exporter of construction and earthmoving equipment, measured in weight terms. The trade surplus increased in Oct/Dec 2016 to just over 82,000tonnes, the highest quarter since 2014, and in 2016 as a whole, increased to 274,000tonnes, 5.7% up on 2015.
