The top 50 construction machinery manufacturers in the world have performed well in the Yellow Table in 2017, 2018, and 2019. It is generally believed that the industry has reached its cycle peak, and there will be a slight decline in the following. This series of predictions before the new crown epidemic has even shown clues, so those in the industry who read this article with one eye closed can be forgiven. Guess, how much will the total of the Yellow Table fall?
Simply answer: Not as much as predicted. Last year's Yellow Table (showing the company's sales performance in 2019) showed US$202.7 billion, the highest in history.
This year's Yellow Table shows the company's sales performance in 2020. The overall sales amounted to US$191.5 billion, a decrease of 5.5%, which was much more moderate than the forecast.
Putting this data into the historical context, the sales of Yellow Table in 2018 were 184 billion U.S. dollars, which was a very strong year for the construction machinery industry. In 2020, due to the global new crown epidemic and the lockdown of cities in various countries, sales will exceed 7.5 billion U.S. dollars. How did this happen? There are some reasons here, but let's start with the most important one: China!
If there is no growth of Chinese host manufacturers in the table, there is no doubt that this decline is 5.5% higher. China is the only major construction machinery market that will grow in 2020. The Chinese government quickly launched a stimulus plan as early as April, which has rapidly boosted equipment sales.
According to a report by Off-highway Research, China's construction machinery sales have increased by approximately 14%, while other major markets have declined. In 2020, China's sales accounted for more than one-third of the global market. There is no doubt that the significant rise in this year's rankings will all come from China. Before browsing the data, let's take a look at the familiar name at the top: Caterpillar.
The industry giants located in North America occupy its consistent No. 1 position in the industry, with sales of 24.8 billion U.S. dollars, which is a downward trend from last year's 32.8 billion U.S. dollars. Even with such a decline in sales, this company is still firmly ranked first. Komatsu ranked second with 19.9 billion U.S. dollars in sales, down from last year's 23.2 billion U.S. dollars.
Yellow Table 2021
Climb to the top
Following the “traditional” top two companies, the top companies have undergone considerable changes. This change should not surprise everyone. It comes from Chinese companies.
XCMG jumped from No. 4 to No. 3, with sales rising from 11.1 billion U.S. dollars to 15.1 billion. Following closely behind is Sany, which jumped from 5th to 4th last year, and its sales increased from 10.9 billion US dollars to 14.4 billion US dollars.
Another Chinese company, Zoomlion, which ranked in the top five, has made a dazzling jump in the rankings. The company jumped from No. 10 to No. 5. This kind of advance climb is almost unprecedented.
John Deere dropped from No. 3 to No. 6. Compared with last year, companies from No. 7 to No. 10 dropped one place respectively: Volvo Construction Machinery ranked No. 7 and Hitachi Construction Machinery ranked No. 8. Boher was ranked 9th, and Doosan Infracore put an end to the top 10.
Hyundai confirmed that its acquisition of Doosan Infracore has a weak 35% shareholding ratio, which gives it management control over Doosan’s business. The impact this has on the sales performance of the two companies has made everyone interested. Wait and see. Hyundai expressed that they expect this acquisition will push both companies to the highest level in the international construction market.
Climb up and down
This year's top 10 rankings in the Yellow Table show more changes than the rankings in general years-the unconventional situation of the global new crown epidemic has led to a surge of uncertainty. Zoomlion is the largest jumper in the top 10 ranking, rising from 10th to 5th. This company is also one of the largest jumpers in the entire list.
Metso Outotec jumped 4 places from 16th to 12th, which can partly explain the fact that last year's ranking was only Metso. Since then, Metso and Outotec have completed their merger. The other change in the list that jumped more than one place came from-yes, you guessed it-Chinese companies. Liugong showed a healthy growth, jumping from 19th to 15th, Lonking climbed 5th to 23rd, small excavator Shanhe Smart climbed 4th, and of course Lovol.
Looking at the companies that fell in the rankings, Terex dropped 4 places to 17th, Oshkosh High-altitude Operations (the parent company of the high-altitude operations company JLG) fell 5 places, and Bauer fell 3 places.
There is a new entrant in the list, China's high-altitude operation machinery company, ranking 46th. China is a rapidly developing market for aerial work machinery, and health and safety laws are developing rapidly in this country.
Look forward
The sales of mainframe manufacturers in 2020 are better than previous forecasts, especially when we look back at those dark days and the first lockdowns of various countries, and the series of uncertainties brought about by them.
Some mainframe manufacturers have released their sales performance for the first quarter of 2021, and these results are quite optimistic compared to the same period last year. It is reasonable to look forward to the data of the second quarter, and the comparison over the same period will be better, because at that time the new crown epidemic has completely spread across the world.
Therefore, it is reasonable to think that the Yellow Table next year will show growth, and now we have seen this obvious trend. In any case, we still need to be cautious. This year's rankings can have such a good result depends on China-this market depends on the country in 2020, this development is called unhealthy in 2020.
In the past, when China's huge investment into the infrastructure market and the implementation of economic stimulus measures, there was a plunge. This painful market contraction occurred after the 2010-11 stimulus plan. Obviously this lesson has been learned, 2021 will see a "soft landing", a small decline, but this situation should also cause vigilance.
Governments around the world have continued to invest in infrastructure projects on a large scale during the epidemic, and this trend has not stopped. Major global markets shrink in 2020, such as North America and Europe, and will see growth in 2021. But the Chinese market leaves us with a huge question: If the decline in 2021 is "soft", then next year we will see healthier results in the Yellow Table.
Rules:
The ranking in the Yellow Table is based on the USD-based sales in the 2020 calendar year. Different currencies will be converted into U.S. dollars based on the 2020 average exchange rate, ensuring fairness to the greatest extent. Data collection is widely derived from various channels including: listed company financial reports, company financial statements, and qualified third-party agency information.
In Japan, India, and some other countries, the fiscal year ends on March 31, so it is almost impossible to use the statistical information of the calendar year. In this case, the fiscal year's annual report will serve as the basis. In other cases, "International Construction" needs annual data and industry trends to estimate the performance of the company. If it is necessary to make an estimate, these sales will be marked with two asterisks. We do our best to ensure the accuracy of this report.
Disclaimer: The Chinese and English copyrights of the Yellow Table published by International Construction are owned by the British KHL Group. Unauthorized piracy, once discovered, will be brought to law based on the severity of the circumstances.
