A new report has revealed UK exports of components and parts for construction and earthmoving equipment shows no sign of stabilising, while imports have begun to pick up pace after a slowdown in 2015…
Last month the Construction Equipment Association (CEA) published a report examining trends in the UK’s exports and imports of construction and earthmoving equipment in Q1 of 2016. The analysis, which was carried out by market information manager Paul Lyons, showed there had been declining trends in the sector since 2013 due to weak demand in overseas markets, but that in recent quarters export levels were beginning to show signs of stabilising.
However, the same cannot be said of construction equipment components. According to a new report from the CEA, the first quarter of this year saw the UK remain a net importer of components and parts. Products include buckets and attachments, blades, parts for boring or sinking machinery, and other parts for construction machinery.
The report showed that unlike exports of construction and earthmoving equipment, UK exports of components and parts have been on a declining trend since 2013 with no sign of stabilising.
Figures showed between January-March 2016, exports were down by five per cent in volume terms (tonnes) and seven per cent in value terms (£ million) when compared to October-December 2015.
Imports of components and parts saw a rising trend since 2013, but experienced a slowdown in 2015. However, Q1 2016 saw the sector pick up again, with a 32 per cent increase in volume terms (tonnes) and five per cent in value terms when compared to Q4 2015.
The report also showed during Q1 2016 the UK saw import volumes reach 54.6k tonnes, while exports only hit 23.6k tonnes. In value terms the figures stood at £198m (cif) for imports and £160m (fob) for exports. The CEA said this showed the UK is a net importer of components and parts.
The gap in terms of value is smaller due to the higher average value per tonne of exported products compared with imports, as the average value of the former was £6,800/tonne, while the value for latter stood at £3,600/tonne.
According to the data, UK manufacturers exported components and parts to over 140 different countries during the first quarter of the year. The top three destinations accounted for over 45 per cent of total exports. This included the USA (19 per cent), France (17 per cent), and Belgium (11 per cent). These nations were also the top three destinations in 2015.
UK imports of components and parts came from 67 different nations, with the top three in 2015 and in the first quarter of 2016 China, India, and Italy. The three nations accounts for c.63 per cent of total volume and c.39 per cent of total value in January-March 2016. China accounted for 32 per cent of total volume and 13 per cent of value in Q1 2016. However, import levels were lower than those seen in the first three quarters of 2015.
The highest volume of products exported in January-March 2016 in volume terms (tonnes) was “other parts”, which accounted for 68 per cent. This was followed by blades at 14 per cent, parts for boring or sinking machinery at 12 per cent, and buckets and attachments at six per cent.
In regards to imports, “other parts” were also the highest volume product in Q1 2016. This accounted for 88 per cent of total imports. Buckets and attachments made up eight per cent, while parts for boring or sinking machinery came in at four per cent.
