Equipment sales soar

Global unit sales of construction equipment increased 18 % last year, according to a new report from Off-Highway Research, writes Chris Sleight in the April issue of IC sister magazine International Construction.

The four major markets of China, Europe, Japan and North America all saw increased sales in 2004, and total sales of equipment hit 585460 units, compared with 495862 in 2003.

Growth was strongest in North America, where a 34 % rise in demand saw sales hit an all-time record of 205065 units, up from 153000 in 2003. Looking ahead to next year, Off-Highway Research expects a further 3 % increase in sales, with volumes expected to be 208125 units.

Surprisingly, the Chinese equipment market also saw growth last year, with the well publicised fall-off in excavator sales being more than offset by higher demand for wheeled loaders. Indeed, of the 143507 earthmoving machines sold last year, a staggering 103400 were wheeled loaders. This represented a 24 % rise on the previous year, and it made for, an 11 % increase in the total equipment market.

Off-Highway Research expects, however, the Chinese market to cool next year, with a 16 % decline forecast. Wheeled loader, excavator, dozer and compaction equipment sales are all expected to fall.

The European market also rose last year, against previous expectations. Sales hit 150631 units, a 10 % rise on 2003, which took the market close to the all-time high of 151500 units seen in 2001. A decline of 4 % is expected this year.

Japan saw a rise of 17 % in equipment sales in 2004, which took the market to 61854 units. Demand is expected to hold steady this year, with a marginal 1 % rise.

Off-Highway Research's prediction is for a 5 % fall in equipment sales this year, with the combined market in the four major territories falling to 556050 machines. The main component of this 29410 unit fall is expected to be in China. Subtracting this effect from the total, the three mature markets of Europe, Japan and North America are expected to see a marginal 0.6 % decline.

For more information, visit www.offhighway.co.uk