The sales of the world's top 50 construction machinery host manufacturers have rebounded since the outbreak, reaching a record high.
The title comes from this year's yellow table. The data comes from the sales of construction machinery of the world's top 50 mainframe manufacturers this year, reaching an eye-catching $232.7 billion. This is the highest record ever set by yellow table, up 20.8% from last year.
This is not surprising. According to the report of off highway research, a professional organization in the industry, about 1.2 million construction machinery and equipment were sold in 2021, an increase of 9% over 2020, the highest in history.
According to the context, the overall sales in yellow table last year was $191.5 billion. This occurred in the year when the COVID-19 was under control, down from US $202.7 billion in the previous year. Once the city closure ban is lifted (in most countries), sales will always rebound. The question is how much rebound? A: many.
This growth is remarkable (and perhaps sustainable) because it is spread all over the world. In last year's list, despite the global epidemic, the market fell by only 5.5%, which was due to the super strong sales performance in the Chinese market. In 2021, China's sales showed a slight decline, but other major global markets, such as Europe and North America, all grew satisfactorily.
Komatsu, No. 2, has a very similar story. Its sales rose from $19.9 billion to $25.3 billion. Therefore, the record growth of the first two mainframe manufacturers alone reached US $12.6 billion. This in some way explains the reason why the list rose by 20.8% this year.
The above information shows that the operating revenue in Asia decreased to 50.2% from 52.1% last year. This is expected - when the COVID-19 was raging - most markets in the world except China showed a decline. Host manufacturers in other countries listed in the yellow table this year recovered and reported more growth. North America achieved a slight growth from 22.3% to 23.2%, which was due to the strong sales performance of caterpillar, the world's largest mainframe manufacturer, and so was John Deere. There was also a slight increase in Europe, from 25.2% last year to 26.3%, among which three enterprises ranked in the top 10: Volvo Jianji No. 6, Liebherr No. 8 and Sandvik No. 10. Please note that the data in the yellow table shows the operating revenue of the listed companies and does not represent the revenue performance of a region or a country as a whole.
XCMG, No. 3, and sany, No. 4, both grew slightly – which is not surprising because they are both from China. John Deere rose to No. 5 with sales of $11.3 billion, a significant increase over the previous year.
Among other top 10 enterprises, Volvo Jianji rose to No. 6, followed by Zoomlion, a Chinese enterprise. Liebherr rose to No. 8 and Hitachi fell to No. 9. Sandvik is new to the top 10 – perhaps not surprisingly, it acquired 14 businesses in 2021.
Great changes
One of the biggest changes in the yellow table list this year is the acquisition of Doosan construction machinery by Hyundai Heavy Industries. Doosan construction machinery is transformed into modern Doosan construction machinery, a subsidiary of the new Hyundai genuine group, and modern construction equipment is also a subsidiary of the group. As a part of modern Doosan construction machinery, Doosan still maintains independent operation, and its sales are not included in the main equity owners of modern Doosan construction machinery.
This indicates that Doosan will be included in the list as a "new entrant", which was previously included in Doosan construction machinery. Doosan ranked 14th in the list, modern Doosan engineering machinery ranked 19th, and modern construction equipment ranked 23rd. Interestingly, if the sales of these three companies are integrated, they will rank No. 7 in the list.
This year's list has also inherited the consistent changes from top to bottom. The biggest change is the great efforts of Chinese enterprises, rising from 46th to 40th. This manufacturer of high-altitude working machinery was recently listed last year and experienced two years of strong growth. China railway construction heavy industry is a new enterprise, rising to 36th. This company produces intelligent shield machine and railway track equipment. Hidromek passed the top 50.
The future says so
In the short term, there will probably be a slight decline. According to the reports of many host manufacturers, the orders in 2022 are full, and the sales will remain at a high point. Countries around the world continue to invest heavily in infrastructure. China, the world's largest construction machinery market, is quiet in 2021, when global sales grow. Relying more on the Chinese market – at present, according to the forecast of off highway research, China's sales will face another decline in 2022, which is of course a small margin.
Even if the yellow table will decline next year, it is still on a record basis. In the long run, the possible troubles are: tight supply chain, rising prices, shortage of raw materials, and increased inflation caused by Russia's actions against Ukraine.
Most parts of the world have been freed from the closure of the COVID-19, and sales are expected to rise - indeed. This growth may be too surprising, directly pushing yellow table to its new record. The growth rate of 20.8% is so amazing, because last year's decline was only 5.5%, and last year's data was based on the previous record. In the short term, at least we can predict that the data of yellow table will remain strong even if it will decline. Many mainframe manufacturers report that their orders are full and the government continues to invest in infrastructure on a large scale. So far, the engineering and construction industry has perfectly solved the package of problems it faces: global epidemic, shortage of skilled workers, shortage of raw materials, rising prices and other factors. It remains to be seen whether the industry will continue to deal with these issues under the rising inflationary pressure and the increasingly divided international political and security prospects. The data in the yellow table may need to go down first and then up in the next few years.
Because a large number of new machines are offline due to strong sales, it will be the easiest decision not to invest in new equipment if the engineering quantity decreases.
The occurrence of these situations will make next year's yellow table most likely to become the most ambiguous and unpredictable issue. However, a fact revealed in the past few years: how strong the engineering market is. This field is superior to most other industries, and it has withstood the adverse economic and geopolitical trends it faces.
detailed rules and regulations:
The ranking in the yellow table is based on the sales based on US dollars in the natural year of 2021. Different currencies will be converted into US dollars based on the average exchange rate in 2021 to ensure fairness to the greatest extent. Data are collected from various sources, including financial reports of listed companies, financial statements of companies, and information of qualified third-party institutions.
In Japan, India and other countries, the fiscal year ends on March 31, so it is almost impossible to use the statistical information of natural years. In this case, the annual report for the fiscal year will be used as the basis. In other cases, international construction needs annual data and industry trends to estimate enterprise performance. If necessary, these sales will be indicated with two asterisks.
