French optimism

Building construction in France is on the rise again, according to CISMA (the French association of manufacturers of construction equipment and material handling technology), which said that 375,000 new homes were expected to have been built this year – 30,000 better than last year.

It added that at the same time, non-residential building starts had totalled 24 million m², a rise of 2.7%, at the end of the 12 months to September. CISMA said that the rise was expected to be close to 5% this year.

It said that in terms of public works, the news was encouraging, and that order intake had increased. In the Greater Paris area, road improvements and the laying of pipes were boosting the figures. The sector will increase by about 3% this year, it predicted, while the increase would be similar next year.

Against this backdrop, which is supported by an investment-friendly tax system and lower interest rates, equipment manufacturers were performing well, it said.

Earthmoving machinery manufacturers recorded a strong increase in sales since the beginning of the year, rising more than 20%, said CISMA, adding that sales of road equipment had also posted a good performance, increasing by 32% over the first six months of the year.

Manufacturers of concrete materials were reported to have recorded a “spectacular increase” in their sales on the French market. The low investments of the past few years were said to explain a need to buy new machines.

CISMA said that attachment manufacturers were also optimistic, with sales up by around 20%. The French tower crane market has been invigorated, too.

It said that the overall favourable environment was benefiting the industry, and that this was set to continue next year.