EGMF positive trend in gardening for the first half year 2013

For the members of the European Federation of garden machinery manufacturers, in the first six months of the year the sales increased. Positive signals come from France and non-EU Eastern Countries. Western Europe markets are in trouble. Strong increase for the demand of cordless garden machinery

In the first six months of 2013 the enterprises members of EGMF, the European Federation representing the manufacturers of machinery and garden tools, recorded sales of 10 million pieces in 39 countries on the European market, compared with 15 million pieces sold in 2012.

This emerges from a technical report presented by EGMF itself during the Federation's institutional meeting, which took place on 24 October in Laemmerspiel, Germany. Compared with the first half year of 2012, marked by a decrease of 6.7%, the first half year of 2013 had a slight increase of sales volumes (+0,6%), due to the positive trend in some countries and the increase of the demand of some products. France was the leading country in the sector during the first six months of 2013, with manufacturers recording an encouraging +5.5% compared to 2012.

Positive signals arrived from Eastern Europe countries (non-EU) which confirmed (+2.9%) the positive trend started in 2010. In slight decrease instead, the British market (-0.7%), the German (-0.8%) and Scandinavian (-1.6%) ones, and more in genaral, the market of the other Western Europe countries (-1%). In this context Italy did not make any exception even though, after the sharp decrease recorded in 2012 (-17%), in the first six months of 2013 scored a slight loss reduction (-1.4%).

Going into detail, EGMF survey highlighted that the main demand concentrated on fuel propulsion machinery (corresponding to 50% of the overall sales in the first six months of 2013), followed by electricity supplied machinery (about 40%) and battery-powered machinery. Although these machines still represent a secondary market sector, they are increasing, having scored in the first half year of 2013 a remarkable +11% compared with the same period in 2012.

Between 2012 and 2013 battery-powered machinery and tools took shares from electricity supplied machinery. According to EGMF, this fact was not only due to the repositioning of demand in the United Kingdom – the most important market for cordless garden machinery – but also to the storms that hit Great Britain at the beginning of the season.

These facts created adverse conditions for the sale of garden machinery. The bad weather, as it was highlighted by the Federation – has always a strong effect on the sector's trends. The demand of cordless hedge trimmers is increasing; the demand of chainsaws is decreasing while garden tractors resist. The market dynamics of the first half of the year – always monitored on the survey by manufacturers of EGMF – showed a great performance for both multifunctional hedge trimmers (+24.6%).

These work instruments support several kinds of tools in order to offer the maximum use flexibility. Great performance also for battery-powered trimmers, that had an increase of 18.8%, slightly more than fuel and electricity-supplied tools.

The trend of hedge trimmers was positive, and in particular the sales of engine and battery-powered models, while electric machinery had a 4% downward. The sector of garden tractors on the other way, held steady, having the same numbers as of last year (+0.6%). The trend of the lawn mowers sector is slightly decreasing. In this case in fact, while electricity-supplied models recorded a sales decrease, the battery-charged ones highlighted a strong increase closing the half year with a good +8%.

The trends of pruning chaisaws was not as positive as the other ones, and to the decrease of fuel-supplied models, was added the collapse of cable tools (-27.2%) and the reduction of cordless machinery (-3.5%).
Future perspectives. In the European economic context that let half-view the first shy signals of an economic recovery – EGMF reminded the forecast according which European GNP should turn positive by the second half of 2013 and increase in 2014 – the market trends of garden machinery should feel the effects of the general economic situation, but also of tax regulations issued by each country and of public investments trend for the maintanance of green areas.

As for the normative aspect, the Federation of European Manufacturers points out that in France the abolition of the "privileged" VAT for the sector of green areas will affect the business trades of enterprises, determining as a consequence a decrease of machinery demand. EGMF is also concerned about the public expense reduction for the maintenance of green areas, one of the tasks to be carried out by local authorities.

Otherwise – as the Federation highlights – green areas have an increasingly important role for the environmental balance of the urban centres because they have a part in reducing the risks of an excess of urban heat, in limiting acoustic pollution and monitoring the buildings' temperature.

It is no coincidence that, despite the decrease of public investments in this sector, the European Commission is encouraging the return to "green infrastructures". A range of financial support programmes (in cooperation with the European Bank for Investments) will last until 2014 for those projects aimed at giving value to green areas.