NEWS
Unfair Play in the EU?
One out of 3 companies loses money because of unfair competition. Half of them see illegal machines at construction sites. The industry wonders: Who controls what in the EU?
With the Roland Garros tennis competition taking place during these days we are all getting more and more familiar with the "fair play" concept, by hearing more about it and also through increased repetition in the mass media. On the contrary, in its daily business, the European construction equipment sector (gathered in CECE) is facing a major economic disadvantage when it comes to "competition" in the EU.
The industry has claimed for some years now that there is no level playing field in Europe, and that they struggle with competition from unsafe or illegal products. "Indeed our company is part of an industry that is a major engine for competitiveness, innovation, growth and jobs in the European Union. The sector has been hit by the crisis like nobody else, and had a drop in the turnover of over 40%", said Franco Invernizzi, Marketing Director of CNH Construction Equipment at global level. "Now all we ask to the authorities is to ensure a fair level of competition, which can only be possible if legislation on market surveillance is really implemented".
More than one year after the Regulation 765/2008/EC came into force, through which the EU has equipped itself with a legislative framework aimed at enhancing market surveillance in Europe, the industry says that capital goods are not on the radar of customs and market surveillance authorities as they should. What is the real size of this problem? "That was exactly the question we wanted to clarify some months ago", explains Thomas Lyckvall, CECE Trade Policy Committee Chairman and Head of Sales at Ljungby Maskin AB. "Hence", he continues, "we decided to conduct a survey among manufacturers, dealers, and rental companies to understand this. Unfortunately the results were showing exactly what we suspected: 52% see this problem as a source of concern affecting their business, and 1 out of 3 interviewed companies faced losses in sales because customers opted for a non-compliant machine instead of their products! Finally half of the interviewed companies said they have seen illegal machines at the construction sites."
The industry at this point is talking about concrete facts and figures, and Europe can no longer afford to leave its industry losing competitiveness because of unfair competition.
"Market surveillance must play a crucial role to maintain fair competition, keep Europe as a strategic manufacturing location and ensure the effectiveness of the rules that protect health and safety of workers and the environment", said CECE Vice President Johann Sailer recently when speaking at Samoter 2011. Although legislation is in place, member states seem to continue focusing on consumers' goods, where the possible effects of non compliance can be dangerous for the health of citizens. "We share of course such concern and do not say these products must be dismissed", concludes Sailer, "but we cannot go along a dangerous road which will bring our industry to disappear from Europe. We cannot continue applying all the mandatory legislation in Europe (and therefore be more expensive), without being sure that everybody is submitted to the same rules".