Global market rebound forecast for 2021
By KHL Staff26 November 2020
Global construction equipment sales will grow in 2021, according to specialist market research and forecasting company, Off-Highway Research (OHR). Although this will be from a relatively low base because of the Covid-19 pandemic, the rebound is expected to be strong thanks to stimulus spending plans.
According to OHR, the only major construction equipment market to grow in 2020 was China. Here the government was swift to put a stimulus plan in place as early as April, and this drove an immediate surge in equipment sales. In 2021, the Chinese market is expected to fall back from its peak, but other countries around the world will see strong growth following their declines this year.
OHR Managing Director, Chris Sleight said, “The global market excluding China fell more than 20% in 2020 to a level last seen in 2016. In that context the downturn could have been much worse – it certainly was not on a par with the 2008-9 financial crisis.
“A recovery has been seen in the second half of the year and we expect this to continue in 2021. Growth in the world excluding China next year should be of the order of 10%. That would be a strong recovery and would take volumes to about the same level as seen in 2017, a good year for the industry.”
Commenting on the factors driving the recovery, Sleight said, “Infrastructure markets and the pipeline of work around the world were in a good position going into the pandemic and that work is still there. Once projects are started, they tend to reach completion no matter what the outside factors are.
“In addition to that, we expect various government stimulus measures around the world to provide more impetus for civil engineering activity and the sale of medium to large equipment which goes with that.
“We also see positives in the residential building sector, partly because of the climate of extremely low interest rates which will be in place for several years.”