The fall in global commodity prices and slowdowns in many emerging economies last year saw revenues for the world’s 50 largest construction equipment manufacturers fall -16.2% to US$ 133 billion. This was the lowest revenues have been since 2009, when industry sales fell to US$ 109 billion at the depths of the global financial crisis, and it is also the sharpest year-on-year fall in revenues since those dark days.
The most striking impact of this market trend was seen among China’s largest construction equipment manufacturers. All of the Chinese companies in the Yellow Table fell down the rankings this year compared to their positions 12 months ago. In addition, some of those drops were among the heaviest falls for any company in the ranking – Shantui went down seven places to no. 38 in this year’s ranking, and Liugong slipped six places to no. 22.
These losses also saw some changes at the top of the ranking. XCMG was the only Chinese manufacturer remaining in the top ten, in ninth position. Sany has dropped out of this leading group, opening the way for JCB to enter the top ten for the first time since the 2008 edition of the Yellow Table.
And there were other changes at the top of the league table, although Caterpillar retained the first place it has always held, and Komatsu was again the clear global number two. However, below them, Terex has displaced Hitachi as global number three in the industry and Liebherr has moved up at the expense of Volvo.
Having said this, there is not much difference in revenue terms between Terex, Hitachi, Liebherr, Volvo and John Deere, which occupy positions three to seven. It is fairly common to see them shuffle about like this within the upper echelons of the Yellow Table.
Elsewhere in the top ten, Doosan has improved on its position last year to move up to eighth position, with JCB rounding-off this elite group.
According to industry consultant and forecasting company, Off-Highway Research, 2016 should represent the bottom of the cycle for the industry, with global sales of construction equipment expected to pick up from 2017 onwards. Click here for the full story.
The full Yellow Table report is published in the April edition of International Construction. Click here to register for a FREE subscription to the magazine in print and digital formats