Europe’s crane industry poised to lift construction recovery

The European construction sector has faced significant challenges, as highlighted in HCOB’s recent survey of construction buyers.

Rising costs, in both labour and materials, and supply chain disruptions have caused what Bain & Company called a “perfect storm” for the industry.

However, the company’s latest Building Blocks Construction Indicator offers cautious optimism, forecasting a gradual recovery beginning this year.

Three Wolff tower cranes aiding the construction of Veidekke’s new HQ. (Photo: Wolffkran)

Cranes leading growth

Cranes are set to play an essential role in supporting Europe’s recovery, particularly in key growth areas such as infrastructure modernisation and sustainable building projects.

For example, three Wolff 7534.16 flat top tower cranes are currently aiding the construction of Veidekke’s new headquarters, due for completion in January 2025. This project reflects a growing demand for advanced lifting solutions in large-scale developments.

Bain & Company noted that Europe’s recovery will be fuelled by “structural pent-up demand” following a prolonged decline in activity.

Adrien Bron, partner at Bain, explained, “The construction recovery will be fuelled by structural pent-up demand from the protracted period of declining activity as well as structural long-term drivers of demand from continuing urbanisation, requirements for more affordable housing and more sustainable, efficient offices, and the ongoing need for investment in infrastructure renewal and modernisation.”

Infrastructure demand

Investment in infrastructure will be a major driver of crane utilisation in the coming years. Countries across Europe are prioritising upgrades to energy grids, transport systems, and fibre optic networks.

Bain forecasts infrastructure construction growth of:

• 2.5 % - 4.5 % CAGR in the Nordics and Italy
• 2 % - 4 % CAGR in the UK
• 1.5 % - 3.5 % CAGR in Germany

These types of projects will require a whole host of different crane solutions, from super heavy lifting equipment to mobile cranes suited for a range of environments.

Office and residential construction

New sustainability standards across Europe are set to boost office construction, further increasing the demand for cranes in this sector.

Bain forecasts office construction activity growth of:

• 2.5 % - 4.5 % CAGR in the Nordics
• 1.5 % - 3.5 % CAGR in the UK
• 1 % - 3 % in Germany and Italy

Meanwhile, residential construction is also expected to rebound, particularly in the Nordics, where growth is forecast at 6.5 % - 8.5 % CAGR over 2025-2027. France is expected to follow closely with growth of 5 % - 7 %, whilst the UK is projected at 3 % - 5 %.

However, growth in Germany and Italy is expected to remain subdued, reflecting regional disparities in demand. Bain highlights high borrowing costs and rising prices as ongoing challenges for residential development.

Looking ahead

While Europe’s construction industry faces hurdles, the forecasted recovery offers significant opportunities for the crane and transport sector.

With infrastructure, office, and residential projects on the rise, cranes will remain at the centre of Europe’s rebuilding efforts. By supporting these developments, the crane and transport industries are poised to play a crucial role in lifting the region’s construction market out of stagnation.