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FROM THE PRESIDENT

I was honoured to be re-elected as your President at the last AGM and look forward to working with fellow members of the Management Council on our ambitious programme for the year ahead.

We are still basing much of our current agenda on the findings of last year’s DTI report into Sector Competitiveness in the UK Construction Equipment Industry. The report identified the strengths and weaknesses of our industry sector and provided a series of recommendations that need to be actioned if we are to remain competitive in world markets.

The first recommendation was that we should adopt the automotive industry’s lead of helping their supplier base achieve higher levels of manufacturing performance by following their SMMT MasterClass example. We had already started along this route with our Promoting Performance initiative, but after a lot of hard work, I am pleased to report that we more than achieved our "Year One" objectives. In addition, Rob Oliver and his team are currently finalising negotiations for funding support with the DTI that would enable us to triple the size of the programme in 2002/2003.

One of the other issues from the Sector Competitiveness report was the need for the CEA to improve awareness within the industry of export opportunities, particularly with SMEs. Again, the CEA has taken up the challenge and with DTI support has commenced a programme of awareness and advice to both members and non-members keen to expand into export markets. This programme will also continue into 2003.

Hopefully, most members will be reasonably happy with the state of the home market so far this year because, unlike most of our export markets, the UK market for construction equipment in the first four months of 2002 is looking reasonably healthy. Unit sales are 9% up on the same period last year (CECE Retail Data). In the 14 countries that make up continental Europe, however, the markets are down by 15% overall, which is a major concern for those members who rely on these markets for a significant volume of their business. Following the sharp downturn in world markets at the end of last year, economists did predict slow demand in the first half of 2002, but then forecast a pick-up in the second half of the year led by a return of confidence in the US. However, they now appear to be less confident in their forecast since US demand remains sluggish. Only Italy of the major continental European markets is bucking the trend so far this year with markets up on last year. For the time being then, the UK continues to be the star performer.

Other issues on the CEA agenda for the coming months are plant theft, legislation on emissions, noise, vibration and visibility, the role of the Committee for European Construction Equipment (CECE) in representing our industry in Brussels and the support programme provided to members on overseas exhibitions.

You will note elsewhere in this issue of Newsline that the CEA administration team has relocated to smart new offices in Caterham. May I take this opportunity on behalf of the members to thank them for their first-class support and to wish them all the best for the future at their new address.

NEIL ALLEN
CEA President