France's heavy construction equipment market has experienced an upturn in recent years.  It is the fourth largest market in the world, after the United States, Japan and Germany.  The United States is France’s seventh most important provider of construction equipment.

Market demand depends primarily on the status of the construction industry.  France’s construction equipment market reached USD 5.59 billion in 2005.  Market experts estimate that total sales of construction equipment in France increased 4 percent for 2006.

Best Products/Services

France is a strong market for U.S. exporters of construction equipment.  Hydraulic excavators should remain the biggest segment, at 27 percent in 2007.

There is also an increasing demand for smaller machines used primarily for urban public works projects.  Among machines that offer the best sales prospects are compact shovels, hydraulic wheeled loaders, backhoe loaders, skid-steer loaders and compact excavators.  Machines that offer operational versatility are more attractive to contractors. End-users require improved post-sales service with qualified technicians and prompt availability of spare parts.

Most of the world’s largest heavy construction equipment makers have established manufacturing facilities in France or Europe to gain a local presence.  For example, Caterpillar (U.S.) operates two manufacturing plants in France, Liebherr (Germany) makes hydraulic shovels at its French subsidiary, and Case-New Holland (U.S.) makes tractors in France as well.

Large foreign companies also export their heavy construction equipment to France:

- Komatsu (Japan), the world’s second-largest heavy construction equipment manufacturer after Caterpillar with $14.5 billion in 2005 in worldwide sales, is increasingly active in the French market.

- JCB (UK) distributes its products in France, including backhoe loaders and crawler-mounted excavators.  It has its own distribution subsidiary in France and its annual sales worldwide reached $2.3 billion in 2005.

- Volvo with worldwide sales of $4.37 billion in 2005 has a strong presence in France.

- Caterpillar has an estimated market share of 20 percent for crawled-mounted hydraulic excavators and 30 percent for wheeled loaders.  Case-New Holland is the leading supplier of big shovels in France.

Opportunities

Major trade event in France:
INTERMAT - April 20-25, 2009 - Paris Nord, Villepinte Web site: http://www.intermat.fr

Resources

National Association of Equipment Industries (CISMA)
Web site: http://www.cisma.fr/

U.S. Commercial Service Trade Specialist: Rose.Marie.Faria@N0SPAM.mail.doc.gov

Construction Machinery in France (Major Market Profiles from Euromonitor International)

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